Data published yesterday by IHS showed that in August British manufacturers suffered from a ‘’creeping dread’’, suffering their worst fall in output since 2012. Measured at 47.4, from 48 in July, anything below 50 means contraction. Unfortunately, this coincided with BRC retail sales data which fell to -0.5 per cent Y/Y like-for-like in August, with every category except food falling; some are suggesting Brexit stockpiling here. Over in the Eurozone August Manufacturing PMI data was also weak, only France hanging on at 51.1. All other countries’ measures were below 50, the lowest of which was Germany’s 43.5.
City AM reports that filings published yesterday show that Deutsche Bank CEO Christian Sewing will, at the end of each month, use 15 per cent of his net pay, equivalent to €21,250, to buy shares in his bank. Like chairman Paul Achleitner who spent almost €1 million in Deutsche Bank shares earlier this year, it is an attempt at reassuring investors that the turnaround plan for the bank is viable.
DAX 30
Having retraced half the losses since July’s high, this index is today bumping up against a descending Ichimoku cloud which should act as resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Stalling just ahead of the half-way retracement resistance level and like the Dax, faces a descending bearish daily Ichimoku cloud through to the end of this month.
SHORT TERM TRADER: Stopped out at a small loss.
POSITION TAKER: Short at 7570; stop above 7325. Target 7000, maybe 6865.
S&P 500
Momentum hasn’t been clearly bullish since mid-July and nor is it today. Retreating from the horizontal level that had supported July’s broadening top chart pattern, we remain clearly within the range that dominated in August.
SHORT TERM TRADER: Small short at 2910; stop above 2970. Target 2820.
POSITION TAKER: Short at 2915; stop above 2970. First target 2820.
BRITISH POUND/US DOLLAR
Oversold again, and no wonder as we face a grim week in Westminster. Dipping a few pips below the psychological 1.2000 is not technically significant. We traded down to 1.1800 very briefly in October 2016.
SHORT TERM TRADER: Stopped out at a small loss yesterday.
POSITION TAKER: Stopped out for a loss this morning.
EURO/US DOLLAR
Like cable, oversold as it’s dropped to this year’s lowest level, and the lowest since April 2017.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Messy as it’s not holding chart levels properly and the MACD is swinging between bullish and bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
