Not naming names, but America’s Department of Justice has started a review of monopolistic tendencies as to ‘whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers’. Last week a US Congressional Committee held a hearing with executives from tech firms asking about anti-competitive practices. Yesterday’s DoJ announcement comes one day before the Federal Trade Commission is expected to announce a $5 billion fine for Facebook for failing to protect user privacy.
The Q2 loss doesn’t come as a surprise, what with all the redundancies and restructuring, but this morning Deutsche Bank announced it had lost €3.15 billion in the 3 months to June versus a €401 million profit a year ago; this is the biggest quarterly loss since Q4 2008. Daimler also announced this morning that Q2 2019 losses amounted to €1.6 billion.
DAX 30
A big rally yesterday has turned momentum bullish.
SHORT TERM TRADER: Stopped out for a small profit.
POSITION TAKER: Also stopped out here for a loss.
FTSE 100
A sort of shooting star-type candle yesterday as we continue to hold above 7500 though the MACD is bearish. Today Boris Johnson will visit the Queen at which point the ‘dude’ will officially become Prime Minister.
SHORT TERM TRADER: Short at 7550; stop above 7600. Target 7200.
POSITION TAKER: Short at 7515; stop above 7625. Target 7100.
S&P 500
The MACD remains negative and the index is almost overbought as we hover just under the upper edge of the potential massive broadening top pattern that has dominated since early 2018.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Drifting again while holding inside the potential broadening base formation.
SHORT TERM TRADER: Long at 1.2525; stop below 1.2385. Target 1.2750.
POSITION TAKER: New little long at 1.2500; stop below 1.2350. Target 1.2775.
EURO/US DOLLAR
Giving up most of June’s rally as we look set to probe April and May’s lows. The ECB meets today and tomorrow and there’s much speculation as to how exactly they might ease monetary conditions even further. Note that in their results and forecasts many banks are pointing to the effect ultra-low target rates are having on their interest income.
SHORT TERM TRADER: Stopped out for a small loss.
POSITION TAKER: Square.
GOLD
The MACD is still bearish as we consolidate under 1440.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
