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Market Outlook: Hong Kong credit rating downgraded

Fitch now says AA- versus AA yesterday
September 6, 2019

Interestingly their analysts blame the demonstrations. ‘’Months of persistent conflict and violence are testing the perimeters [sic] and pliability of the ‘one country, two systems’ framework that governs Hong Kong’s relationship with the mainland, underscored by mainland officials taking a more public stance on Hong Kong affairs than at any time since the 1997 handover’’. Rallies are planned for this evening and the South China Morning Post today published an advert from the Airport Authority urging protesters not to block highway access to the airport again

Yesterday Hong Kong’s stock exchange HKEX was forced to cancel futures trading which today they blamed on a software bug; normal operations have resumed. ‘’The software issues in the vendor supplied trading system that caused the market outage yesterday have now been isolated…HKEX will update the market again once a full and detailed analysis of the incident and the vendor software issue has been completed’’.

DAX 30

Settling on Fibonacci 61 per cent retracement of August’s initial decline, keeping bullish momentum steady.

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:  Square.

FTSE 100

The top of a shooting star candle at exactly 50 per cent retracement resistance, just ahead of a large, descending bearish daily Ichimoku cloud, underlines the struggle this market is having here.

 

SHORT TERM TRADER:   New short at 7255; stop above 7350. Target 7060.

 

POSITION TAKER:  Square.

S&P 500

Bullish momentum picked up as the index broke above the horizontal chart level extending from the base of July’s broadening top. Unusual as it’s ahead of today’s important US payroll data which may well have an important bearing on this month’s FOMC rate decision.

 

SHORT TERM TRADER: Stopped out for a small loss.

 

POSITION TAKER:   Also stopped out for a small loss.

BRITISH POUND/US DOLLAR

Such a pity bullish momentum is so poor because we have a potential morning star candle on the weekly chart.

 

SHORT TERM TRADER:  Took profits on yesterday’s close at 1.2325.

 

POSITION TAKER:  Will attempt a small long on a close above 1.2300 tonight.

EURO/US DOLLAR

Surprised to see a dragonfly doji yesterday because it’s not exactly bullish.  

 

SHORT TERM TRADER:  Long at 1.1030; stop below 1.0950. Target 1.1150.

 

POSITION TAKER:  Square.

GOLD

So much for neat, fine and dandy with a bearish engulfing Marabuzo candle yesterday which in turn is the third of a 3-candle evening star pattern.

                            

SHORT TERM TRADER:  New short at 1520; stop above 1560. Target 1440.

 

POSITION TAKER:  Square.

Nicole Elliott is a long-standing member and Fellow of the Society of Technical Analysts and has taken over the IC’s trading coverage.  She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.