The first round of Argentina’s presidential election round, the final due in October, saw incumbent pro-business Mauricio Macri get just 32 per cent of the vote and Peronist Fernandez and his running mate Christina Kirchner grab nearly 50 per cent. Needless to say, the first thing to go yesterday was the currency, the peso shedding a cool 25 per cent of its value; then stocks, admittedly from close to record highs, were slashed by up to 40 per cent. The 100-year US dollar bonds they had managed to flog just two years ago suffered badly, also unsurprising thanks to their duration. Separately, in a recent poll on attitudes to international trade and globalisation, Argentines were at the bottom of the pile feeling it had a detrimental effect on their lifestyle and well-being.
Over the weekend accountancy firm KPMG deleted the profile of Tim Howarth, head of its financial services division, and confirmed this senior partner had left the company. ‘’We hold all of our people to a very high standard and take swift and appropriate action against any individual whose behaviour contravenes the firm’s values’’. He’s the third senior partner in 12 months to be investigated for misconduct.
DAX 30
Retreating from Fibonacci 38 per cent retracement resistance keeping the MACD bearish.
SHORT TERM TRADER: New small short at 11645; stop above 11865. First target 11400.
POSITION TAKER: Short at 11835; stop well above 12000. First target 11000.
FTSE 100
The daily MACD is resolutely bearish and now the index has retreated from Fibonacci 38 per cent retracement resistance.
SHORT TERM TRADER: Small short at 7200; stop above 7400. Target 7000.
POSITION TAKER: Short at 7570; stop above 7430. Target 7000.
S&P 500
Interesting to see how steadily bearish the daily MACD has been despite last week’s strong bounce.
SHORT: New short at 2885; stop above 2945. First target 2785.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Still oversold, and the media (though not the world’s) most hated currency, reports that there are the highest level of short positions in two years.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Hard work as we’re back to May’s consolidation levels, though yesterday’s long-legged doji type candle hints at a market looking for direction. A positive MACD backs up the weekly chart pattern.
SHORT TERM TRADER: Small long at 1.1165; stop below 1.1060. Target 1.1340.
POSITION TAKER: Square.
GOLD
Safe-haven status overriding the extremely overbought situation.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
