Yesterday president Trump said, ‘’I can imagine Huawei being included in some form or some part of a trade deal’’ with China. Unimpressed Gao Feng, spokesperson for the Chinese commerce ministry said, ‘’if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions’’.
May purchasing managers’ surveys and IFO sentiment gauges were down on April’s readings and below market estimates – in the Eurozone and in the United States, with manufacturing especially hard hit. Yesterday President Trump announced that he was setting aside $16 billion to help farmers who have been hit hard by Chinese sanctions and tariffs.
DAX 30
Holding trend line support and trading at the neckline of the huge head and shoulders top.
SHORT TERM TRADER: Will sell on a close tonight clearly below trend line support.
POSITION TAKER: Square.
FTSE 100
Retreating off from Fibonacci 61 per cent retracement resistance of May’s small decline with momentum possibly turning down at today’s close.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7275; stop above 7400. Target 6875.
S&P 500
Once again when US stocks sell-off the Nasdaq and Russell are hit harder. Yesterday’s move was also accompanied by a move to buy US Treasuries despite rumours that China was planning to weaponize this too.
SHORT TERM TRADER: Short at 2880; stop above 2900. Target 2720.
POSITION TAKER: Short at 2866; stop above 2900. Target 2740.
BRITISH POUND/US DOLLAR
Holding above 1.2600 with a dragonfly doji but still oversold. Now we’ll have to wait for Sunday’s results from the EU parliamentary elections.
SHORT TERM TRADER: New little long at 1.2675; stop well below 1.2600. Target 1.2925.
POSITION TAKER: Square.
EURO/US DOLLAR
A bit more like it with a hammer candle yesterday though the MACD has yet to turn bullish.
SHORT TERM TRADER: New long at 1.1195; stop below 1.1100. Target 1.1400.
POSITION TAKER: Square.
GOLD
Holding trend line support but momentum’s still just bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
