Surprisingly the opposition Republican People’s Party won March 31st local election, much to the annoyance of President Tayyip Erdogan and the AK Party he leads. Now the High Election Board has deemed this result unsafe and that another election must be held on June 23rd, prompting accusations of ‘plain dictatorship’.
The Reserve Bank of Australia today kept rates unchanged at a record low 1.5 per cent – where they have been for almost 3 years. Some had thought a cut was possible considering the weakness of the housing market and slowing inflation. On the news, the Australian dollar recovered some of the ground lost last week and benchmark 3-year government bond yields backed up to 1.31 per cent from Monday’s record low 1.23 per cent.
DAX 30
Slipping a bit yesterday – along with all too many global stock indices – underlining China’s importance. Today German car-maker BMW said profits fell 74 per cent and sets aside €1.4 billion for a possible EU fine.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bullish momentum has almost evaporated on the weekly chart as we retreat from this year’s interim high (just under the Fibonacci 76.4 per cent retracement resistance) with a hanging man type candle last week.
SHORT TERM TRADER: Looking to re-sell on a daily close clearly below 7300.
POSITION TAKER: Square.
S&P 500
Last week’s dragon fly doji has eased the overbought situation and might lie at the centre of an evening star 3-candle pattern. Price action so far this week inconclusive.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Another long weekend in the UK when MPs have done nothing to sort Brexit.
SHORT TERM TRADER: Long at 1.3040; stop below 1.2990. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Exceedingly dreary.
SHORT TERM TRADER: Long at 1.1190; stop below 1.1140. Target 1.1400.
POSITION TAKER: Square.
GOLD
Still holding above trend line support and momentum is not as bearish as we’d like. Might increase after two consecutive weekly hanging men candles.
SHORT TERM TRADER: Short at 1283; stop above 1290. Next target 1260.
POSITION TAKER: Short at 1292; stop above 1290. Target 1185.
