Expectations had been managed lower, what with the trade spat and waning property demand. Second quarter growth was a new record low 6.2 per cent from the same time last year, down from Q1’s 6.4 per cent, which in turn had been the record low in Q1 2009. The series was first calculated in 1992, with a record high of 15.3 per cent growth in Q1 1993. In Q2 2007 it managed 15 per cent growth, followed by another peak at 12.2 per cent in Q1 2010. Meanwhile the Financial Times reports that Hong Kong’s chief executive Carrie Lam has offered to resign several times but Beijing has refused to let her step down because she ‘has to stay to clean up the mess she created’.
Metro newspaper reports that at yesterday’s Bastille Day celebrations gilets jaunes left their high viz vests at home and infiltrated the crowds along the Champs Elysées, Paris. President Macron, who was hosting German Chancellor Angela Merkel, arrived standing in a roofless armoured vehicle, waving; he was booed, jeered, and told to resign, the first time this has happened in modern day France. Tear gas and baton charges ensued and 175 protestors were arrested.
DAX 30
No bullish momentum and a very irregular 3-candle evening star style pattern over the last three weeks. A similar pattern was spotted at the very start of 2018.
SHORT TERM TRADER: Short at 12530; stop above 12600. Target 11800.
POSITION TAKER: Short at 12385; stop above 12665. Target 11600.
FTSE 100
A harami 2-candle pattern over the last fortnight denotes indecision. Though we have yet to fill the gap down to 7450, bullish momentum has been negligible since May. Just have to grin and bear it. Pleased to hear that the Queen enjoyed Sunday’s cricket.
SHORT TERM TRADER: Short at 7550; stop above 7625. Target 7200.
POSITION TAKER: Short at 7515; stop above 7625. Target 7100.
S&P 500
The strongest ever weekly close, right on the upper edge of the broadening top formation that has been forming since early 2018. Not quite overbought on the RSI. President Trump’s set off another flurry of indignation via the Twittersphere.
SHORT TERM TRADER: Stopped myself out for a very small loss on Friday’s close.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Forming a little hammer on the weekly chart after last week’s V-shaped recovery on the daily one. Possibly marks the low of the broadening bas formation that’s been un the making since last August.
SHORT TERM TRADER: Long at 1.2510; stop well below 1.2500. First target 1.2750.
POSITION TAKER: Long at 1.2525; stop below 1.2440. Target 1.2800.
EURO/US DOLLAR
Still trying to muster a little bullish momentum. Note that the US yield curve steepened quite a bit last week as markets price in more cuts from the Fed and long-dated paper struggles at or close to record low interest rates.
SHORT TERM TRADER: Long at 1.1240; stop below 1.1180. Target 1.1340.
POSITION TAKER: Square.
GOLD
Clearly overbought with two consecutive weekly shooting star style dojis.
SHORT TERM TRADER: Short at 1406; stop above 1440. Target 1340.
POSITION TAKER: Short at 1404; stop above 1440. Target 1320.
