CNBC reports that on Saturday the People’s Bank of China advised that it’ll improve the way it sets the LPR and, as from tomorrow will publish the rate monthly on the 20th. ‘’By reforming and improving the formation mechanism of LPR, we will be able to used market-based reform methods to help lower real lending rates. [It will] deepen market-based interest rate reform, improve the efficiency of interest rate transmission, and lower financing costs of the real economy’’.
In Sunday’s Argentine Clarin newspaper presidential opposition candidate Alberto Fernandez, who got almost twice as many votes in last week’s first round against current incumbent Mauricio Macri, said his country would struggle to pay back the $57 billion it had borrowed from the IMF. Granted by Christine Lagarde, and the biggest loan ever in the fund’s history, he added, ‘’I would say that there is only one incontrovertible reality and that is that Argentina in these conditions is not able to repay the debt it took on’’.
DAX 30
The weekly chart clearly shows the series of descending highs since January 2018. This month the MACD has turned bearish and we are trading around the 200-day moving average at 11650. It hints at another bout of consolidation above Thursday’s low as investors hope for yet more monetary accommodation in the face of a darker outlook for the global economy.
SHORT TERM TRADER: Short at 11645; stop above 11865. Next target 11200.
POSITION TAKER: Short at 11835; stop well above 11865. First target 11000.
FTSE 100
Inconclusive as we hover roughly in the middle of the range since early 2018 – where obviously the 200-day simple moving average lies (7190). What did change last week is that the MACD turned clearly bearish. A daily close below 7120 should add to downside momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7570; stop above 7350. Target 7000, maybe 6865.
S&P 500
Ending the week up close to the highs of the last fortnight and managing to form two consecutive weekly hanging men. Some might claim these are bullish hammer candles, but they cannot be because they lie close to the record high and not at the end of a decent bear run. It’s not just the shape of the candle – or bigger pattern – that counts, but where it lies in the scheme of things.
SHORT: Stopped out this morning with a tiny loss.
POSITION TAKER: New short at 2915; stop above 2970. First target 2820.
BRITISH POUND/US DOLLAR
Oversold as it scuttles along for a second week at the lowest levels in almost 3 years. Politicians of all hues are proving themselves to be the petulant power-crazed creatures we had always suspected they were.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Another sorry specimen that has seen little or no momentum for almost a year.
SHORT TERM TRADER: Small long at 1.1165; stop below 1.1060. Target 1.1340.
POSITION TAKER: Square.
GOLD
Horribly overbought and thrashing around the 1500 are last week, ending with a version of a weekly shooting start; not bullish.
SHORT TERM TRADER: Small short at 1500; stop above 1535. Target 1440.
POSITION TAKER: Square.
