Figures published this morning by Ryanair Holdings Plc saw profits for the 3 months to June 2019 come in at €243 million, ahead of the €232 forecast by analysts, but down from €309 this time last year. Blaming overcapacity, Boeing’s 737 MAX, and Brexit (of course, who doesn’t?) fares over the reporting period had already fallen by 6 per cent and this was likely to continue for the rest of the summer. Before these results were announced, the shares settled on Friday at €10.02, roughly half 2017’s peak.
Today the Financial Times reports on a compliance blunder at Deutsche Bank into which an investigation has been launched. After the first set of redundancies in the equities divisions in London and New York on July 8th, 50 traders were still able to access the bank’s systems and their work emails; one of them sent an estimated 450 emails to her list of clients and others this way. Now they’re wondering if confidential client data was compromised.
DAX 30
Negligible momentum and a shooting star on the weekly chart at Fibonacci 61 per cent retracement resistance suggests the index is stalling here.
SHORT TERM TRADER: Short at 12360; stop well above 12600. Target 12000.
POSITION TAKER: Square.
FTSE 100
Momentum is still fractionally bullish even though the index has been stuck just under 7600, Fibonacci 76.4 per cent retracement resistance, for four consecutive weeks.
SHORT TERM TRADER: Short at 7550; stop above 7600. Target 7200.
POSITION TAKER: Short at 7515; stop above 7625. Target 7100.
S&P 500
Closing on the upper edge of the broadening chart pattern that has dominated since early 2018 and not too overbought. Hopes pinned on the US Fed cutting interest rates after their Tuesday/Wednesday FOMC meeting. Even ex-chair Janet Yellen getting in on the act, telling CNBC that they should trim 25 basis points off the target because ‘’the global economy has weakened’’.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Almost, but not quite, oversold as we dip again today, now at its lowest level since March 2017 – not since the referendum though where the low was a brief spike to 1.1800 in October 2016.
SHORT TERM TRADER: Been stopped out of my long position this morning.
POSITION TAKER: New little long at 1.2500; stop below 1.2350. Target 1.2775.
EURO/US DOLLAR
Not quite oversold despite settling on Friday at this year’s lowest weekly close.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Still very overbought with an irrelevant little candle last week.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
