City AM reports that yesterday French transport minister Elisabeth Borne would introduces taxes on flights from French airports. A sliding scale of levies per person will cover internal and intra-EU flights, increasing for flights abroad, and higher still for premium class seats. Proceeds would be used to support the environment, especially local trains. Airline shares dropped, Air France by 3 per cent as it estimated the move would cost them €60 million per annum and put the company at a competitive disadvantage. Ryan Air shares shed 5 per cent, EasyJet 3 per cent. In Britain, the Committee on Climate Change told ministers to ‘get real’ where the aim of net neutral emissions was not going to be reached because the pace was far too slow; much more needed to be done.
More back-pedalling in Washington where the US government said it would grant licences for firms wishing to sell goods to China’s telecoms giant Huawei – so long as there wasn’t a threat to national security.
DAX 30
Yesterday’s hanging man style candle has comfortably filled the gap created last Monday, and eased the overbought situation very considerably. While we sympathise with those at Deutsche Bank being made redundant, the fact that the share price dropped by 12 per cent in the two days since the announcement suggests investors are unconvinced. And if Mr Sewing thinks that by spending 25 per cent on buying the bank’s shares will do the trick, we remind him that the ploy didn’t work for J. Pierpont Morgan either.
SHORT TERM TRADER: Short at 12530; stop well above 12625. Target 11800.
POSITION TAKER: Square.
FTSE 100
No longer overbought as we retreat from this month’s high, in turn the highest level achieved since August and a Fibonacci retracement of 76.4 per cent of the second half’s drop in 2018.
SHORT TERM TRADER: Short at 7550; stop above 7625. Target 7200.
POSITION TAKER: Square.
S&P 500
No longer overbought but yesterday’s hanging man candle did not fill last Monday’s gap.
SHORT TERM TRADER: Short at 2975; stop well above 3000. Target 2800.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Back down to the low on New Year’s Eve, in turn the lowest price since April 2017 – a fact that has no predictive power whatsoever. We continue working inside a potential broadening base chart pattern and cable is very oversold again.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Really rather disappointing as we retrace a Fibonacci 76.4 per cent of June’s rally. This currency pair is also at its weakest since June 2017 – saying more about the US dollar than it does about either sterling r the euro.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
The MACD has clearly turned down this week and the chart shows a potential double top at 1439.
SHORT TERM TRADER: Short at 1406; stop above 1440. Target 1340.
POSITION TAKER: Short at 1404; stop above 1440. Target 1320.
