As well as data out this morning showing that in Q1 2019 Australian house prices dropped by 3 per cent Q/Q, taking the annualised rate to a 7.4 per cent fall, but the Financial Times reports that Minutes from the central bank suggest the Cash rate could be cut from the current record low at 1.25 per cent set this June. ‘It was more likely than not that a further easing in monetary policy would be appropriate in the period ahead’ as unemployment was likely to decline only ‘a little’ while inflation would rise ‘only gradually’.
Yesterday UK auditing firm KPMG agreed to a £50 million pound fine relating to a two-year probe into illegal activities by former employees. It is alleged that these got an early warning and look into probes inspectors had planned plus that they had cheated in internal training exams.
DAX 30
Sort of rolling over, literally, with bullish momentum collapsing.
SHORT TERM TRADER: Short at 11870; stop above 12200. Target 11325.
POSITION TAKER: Square.
FTSE 100
Another hanging man style candle yesterday and the commodity channel index has turned down. South West trains started 5 days of industrial action today – timed to coincide with race meetings at Ascot this week.
SHORT TERM TRADER: Small short at 7385; stop above 7470. Target 7100.
POSITION TAKER: Square.
S&P 500
Bullish momentum fading away as we manage a sixth consecutive doji style candle. As if President Trump doesn’t have enough to get on with, including today’s official start in Florida to his campaign for re-election, he’s ordered another 1000 US military personnel to be deployed in the Middle East as tensions with Iran escalate.
SHORT TERM TRADER: Short at 2885; stop above 2960. Target 2800.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Dropping down towards the early January lows and becoming oversold again. Tory leadership candidates will be whittled down again today and Boris Johnson will appear this evening in a televised debate hosted by the BBC.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Tricky picture as we consolidate between the two long term trend lines with negligible momentum.
SHORT TERM TRADER: Stopped out of my long position for a small loss.
POSITION TAKER: Square.
GOLD
Holding up a lot better than one would expect in a market that’s so overbought.
SHORT TERM TRADER: Short at 1333; stop above 1360. Target 1285.
POSITION TAKER: Short at 1340; stop above 1360. Target 1270.
