Yesterday the supervisory board of Germany’s Deutsche Bank met and rubber stamped CEO Christian Sewing’s restructuring plans which he ‘’greatly regrets’’. The Financial Times reports that in an email to staff he said, ‘’ Today is that day: After further stabilizing our bank last year, we are now entering the next phase – and that means nothing less than a fundamental transformation of our bank.’’ Almost 20 per cent of global headcount will be axed as the bank pulls out of global equities and trims more of the investment banking arm. To less fanfare, the estimate for the value attached to the contents of its bad bank has risen from €50 billion to €74 billion. The cost of redundancies and restructuring is estimated at €7.4 billion, with a hit in Q2 2019 €2.8 billion and the dividend has been suspended.
The centre-right party of Kyriakos Mitsotakis won an outright majority in Sunday’s snap general election called by Alexis Tsipras of the outgoing leftist Syriza party. Promises of corporate tax reform and an urgency to reduce youth unemployment which has held above 30 per cent for 20 years.
DAX 30
Last week’s tiny doji candle with a gap under it has the potential to become an island reversal. The commodity channel index is also flashing a warning.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The commodity channel index flashing a warning now that this index has retraced a Fibonacci 76.4 per cent of June’s decline. Note the gap on last week’s opening as there is a good chance this will be filled this week.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Friday’s price action formed a hanging man candle and the weekly chart a tiny doji with a gap which might turn out to be a new top.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Still floundering as it attempts to base against long term support in the 1.2600 area. Note that over the weekend President Recep Erdogan of Turkey sacked his central banker. Needless to say, the lira has weakened this morning.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Redrawing my trend line resistance to incorporate end-June’s tiny doji with last week’s completion of a 30-candle evening star formation. Very unusual to see one of these towards the bottom of the long-term price range.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Still overbought following a second consecutive weekly shooting star candle.
SHORT TERM TRADER: New short at 1406; stop above 1440. Target 1340.
POSITION TAKER: Short at 1404; stop above 1440. Target 1320.
