Says he will impose ‘’a small additional tariff’’ on another $300 billion of Chinese goods imported into the US. ‘’We thought we had a deal with China three months ago, but sadly China decided to re-negotiate the deal prior to signing’’. He also suggested that these could be increased in ‘’stages’’ moving ‘’well beyond’’ 25 per cent despite his belief that President Xi is a friend and great person.
Sentiment data for the Eurozone published this week has been downbeat. The latest, published yesterday, show July manufacturing confidence sinking to its lowest level since 2012, the year Mario Draghi was forced to say he’d do ‘’whatever it takes’’ to keep the show on the road. Germany, with a reading of 43.2, was the lowest in the group and the lowest in years. Ireland also fell to a multi-year low, France dropped to 49.7, Spain to 48.2. In fact, all nations except Greece and the Netherlands had readings below 50, at which point contraction sets in. Worth noting that today all 28 EU finance ministers will vote via email for their preferred candidate from a shortlist for head of the IMF – something northern and southern countries have been unable to agree on for weeks.
DAX 30
Yesterday’s shooting star candle with a close below trend line support marks a new interim high. The MACD is clearly bearish and a weekly close comfortably below 12000 would add to downside momentum.
SHORT TERM TRADER: Took half my profits at my 12000 target and will run the rest to 11800; stop above 12300.
POSITION TAKER: Will go short on a close below 12000 today.
FTSE 100
An inverted V-shaped reversal, false break above 7600 and a spike high – and now the MACD has ticked back down. Such stuff and nonsense. Is it any wonder that yesterday the UK’s Investment Association announced that in June about £2.4 billion flowed into bond funds but equity ones continued to struggle with a net outflow of £744 million.
SHORT TERM TRADER: Will re-sell on a close below 7600 today.
POSITION TAKER: Short at 7570; stop above 7630. Target 7000.
S&P 500
A powerful and decisive rejection yesterday from record highs with a powerful shooting star candle completing the smaller broadening top at the top of the big one that’s been building since early 2018. This fractal patterning backs up our view that topping activity is happening, and now momentum is a tad bearish. Interesting to hear that Amazon founder Jeff Bezos has sold $1.8 billion of his shares in the company over the last 3 days.
SHORT TERM TRADER: New short last night at 2945; stop above 3030. Target 2875, maybe 2700.
POSITION TAKER: Will sell on a close below 2960 tonight.
BRITISH POUND/US DOLLAR
Glee in some circles as cable dips momentarily below the 1.2100 level. We remind that this is not a key chart level so plenty of slippage should be factored in. Note that today Visit Britain announced visitors coming to the UK had an excellent year led by a 21 per cent increase in Chinese tourists and a 20 per cent increase from India.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
A big dragonfly doji yesterday, almost a hammer really, and still oversold hints that an interim low is in place.
SHORT TERM TRADER: Watching for further signs of a temporary little base forming.
POSITION TAKER: Square.
GOLD
An interesting chart picture here as this market thrashes around, so that the average true range is back up close to 20 – many times what it was in May and June – testing and exceeding both sides of the right-angled triangle.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
