Chinese March trade data released this morning showed a better than expected surplus of 220 billion yuan, up from 34.4 billion in February (admittedly impacted by the Lunar New Year holiday). Measured in local currency imports fell 1.8 per cent from year-ago data, and exports rose 21.3 per cent. In US dollar terms the trade surplus was $32.6 billion, imports off 7.6 per cent and exports rose 14.2 per cent.
CNBC reports that yesterday World Bank president David Malpass said that there was too much debt in the world. ‘’There are challenges facing the world in terms of how do you have transparent projects that are high quality, where debt is transparent. China moved so fast that in some part of the world there is just too much debt’’. No kidding, Sherlock.
DAX 30
Still hovering just above the neckline of the giant head and shoulders top with a declining MACD.
SHORT TERM TRADER: Looking to re-sell, depending on where we close.
POSITION TAKER: Square.
FTSE 100
A little slippage with yesterday’s doji has eased the overbought situation.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Still holding at this year’s high as the US quarterly earnings season starts. Zero Hedge reports that Gregory Garrabrants (47), CEO of $9.8 billion bank Axos Financial, took home $34.5 million in compensation in 2018 – more than any of his peers at America’s biggest banks.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 2800; stop above 2900. Target 2550.
BRITISH POUND/US DOLLAR
Mired, like Brexit, as yesterday UK MPs signed off a 12-day Easter holiday for themselves.
SHORT TERM TRADER: Tiny long at 1.3020; stop below 1.2950. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Increasing bullish momentum as the euro pushes on a bit against a background of a marginally weaker US dollar.
SHORT TERM TRADER: Long at 1.1245; stop below 1.1170. Target 1.1380.
POSITION TAKER: Long at 1.1225; stop below 1.1170. Target 1.1425.
GOLD
The old upward-sloping trend channel and the new downward-sloping trend capped as expected with a large bearish engulfing Marabuzo candle – just about keeping momentum bearish. Now expect a re-test of key support at 1280.
SHORT TERM TRADER: New short at 1292; stop above 1315. First target 1280, then 1260.
POSITION TAKER: Short at 1292; stop above 1320. Target 1185.
