Data published yesterday showed that the number of unemployed in the UK dropped yet again in July taking it down to a new record low of 3.8 per cent, as agreed by international standards (ILO). Meanwhile average earnings grew by 3.8 per cent Y/Y, including bonuses by 4.0 per cent – the highest wage growth since 2009. Meanwhile pub chain Wetherspoons’ boss Tim Martin, who had decided to cut what it charges for a pint of beer to as little as £1.39, was forced into promising brewers they would not have to take a hit; the Society of Independent Brewers had written to him complaining bitterly.
CNBC reports that China’s State Administration of Foreign Exchange will scrap quotas for investments foreigners may make in its domestic markets. This move will ‘’make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China’s bond and stock markets more broadly accepted by international markets’’.
DAX 30
Almost overbought as we potentially rally for a sixth consecutive working day, retracing a Fibonacci 76.4 per cent of July and early August’s losses.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bouncing just a little thus keeping bullish momentum steady.
SHORT TERM TRADER: Short at 7255; stop above 7350. Target 7060.
POSITION TAKER: Square.
S&P 500
The commodity channel index is yet to turn down, but yesterday’s hanging man candle on old horizontal support is not a positive sign. Meanwhile in the White House personnel issues pile up, this time national security advisor John Bolton was sacked.
SHORT TERM TRADER: Small short at 2974; stop above 2960. Target 2825.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Pushing up to test the 1.2400 level despite negligible bullish momentum. I know Mark Carney is on his way out of the Bank of England, and it might possibly be a case of sour grapes, but saying that wild swings in the pound mean it’s trading like an emerging market currency as the Brexit deadline looms is a) factually incorrect and b) unhelpful – to say the least, let alone professional.
SHORT TERM TRADER: Small long at 1.2345; stop below 1.2150. Target 1.2550.
POSITION TAKER: Square.
EURO/US DOLLAR
Bearish momentum eased fractionally again yesterday as the euro manages to hold above the psychological 1.1000. Yesterday French electricity giant EDF warned that it had discovered problems with the welding in some of its nuclear reactors, calling it ‘’a deviation from technical standards’’ in the manufacturing of certain components. France depends heavily on this form of electricity.
SHORT TERM TRADER: Long at 1.1030; stop below 1.1000. Target 1.1150.
POSITION TAKER: Square.
GOLD
Bearish momentum increasing on yesterday’s close, the lowest since early August.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
