Data out early this morning showed just how hard a hit Germany’s industrial giants have suffered at the start of this year. February factory orders collapsed by 4.2 per cent on the month, rather than the forecast bounce from January’s 2.6 per cent fall. In an admittedly erratic series, this contrasts starkly with the more usual plus 3 to 4 per cent and regular 2.5 per cent declines. On an annualised basis orders crashed to a negative 8.4 per cent, far worse than the 5.4 per cent drop predicted, and the worst reading since August 2009 – which was in turn close to the biggest drop since 1993’s record decline.
City AM reports today that Hellenic Petroleum, by yesterday’s closing date, had received no binding bids for a 50.1 stake in Greece’s largest refiner. The privatisation was forced on the nation by the troika working on the terms of the bailout that started in 2010. The privatisation agency gave scant details and will now meet to consider the next steps. As alarming is the fact that privatisations executed over nearly a decade have raised a mere €5.8 billion, and the Hellenic one was expected to rake in another €1.3 billion.
DAX 30
A third decent consecutive up day (known as three white soldiers) and the index is overbought. I’ve tried to redraw this year’s upward-sloping trend line but I’m not happy with the result.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Overbought with a small shooting star candle yesterday at the psychological 7400. Keeping a close eye out for an interim top.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Almost overbought with similarities to the other two indices we cover here.
SHORT TERM TRADER: Stopped out at a tiny loss.
POSITION TAKER: Short at 2800; stop above 2900. Target 2550.
BRITISH POUND/US DOLLAR
Momentum trying to turn bullish as we move to what some are calling ‘beyond Brexit’.
SHORT TERM TRADER: Tiny long at 1.3020; stop below 1.2950. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Trying harder to base again at this year’s low with a little doji at the centre of an irregular morning star three-candle chart pattern. Yesterday’s rally turned the commodity channel index bullish.
SHORT TERM TRADER: New long at 1.1245; stop below 1.1170. Target 1.1380.
POSITION TAKER: Square.
GOLD
Grim and boring and it would seem only a sustained break below 1275 might increase bearish momentum.
SHORT TERM TRADER: Small short at 1291; stop above 1320. Target 1240/1250.
POSITION TAKER: Short at 1292; stop above 1350. Target 1185.
