The traditional show of military might and government cohesion in Tiananmen Square this morning as mainland China celebrates 70 years of communist rule. Apparently the biggest of its kind ever, estimates put the turnout at 15,000 troops, 580 armoured tanks, 160 war planes and the world’s longest-range nuclear missile, according to the Financial Times. Over in Hong Kong more, classified as ‘illegal’, protests are expected as people march for democracy in a state where inequality is at its highest in 45 years.
Today the Reserve Bank of Australia again cut its key Bank Rate by another 25 basis points to a new record low at 0.75 per cent. This, after the economy grew in Q2 2019 at its slowest pace in a decade. Governor Philip Lowe said the move was ‘’to support employment and income growth and to provide greater confidence that inflation will be consistent with the medium-term target’’.
DAX 30
Back up at this month’s highs while the MACD remains bearish. Yesterday the world’s biggest emitter of carbon dioxide and butt of climate change activists, Germany’s RWE, said it would invest €3 billion in renewables.
SHORT TERM TRADER: Short at 12365; stop above 12500. Target 11600.
POSITION TAKER: Short at 12350; stop well above 12500. Target 11400.
FTSE 100
Precious little bullish momentum with prices stalling at Fibonacci 61 per cent retracement resistance. Myriad rumours seeping from the Conservative Party Conference in Manchester.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Precious little progress this month as support around 2960 holds – yet the MACD is bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Ridiculous rumours that hedge funds, who are short sterling in the hope of a no-deal Brexit, are supporting Boris Johnson are swirling, egged on by ex-Chancellor Philip Hammond and now by shadow Chancellor John McDonnell.
SHORT TERM TRADER: Small long at 1.2290; stop well below 1.2200. Target 1.2500.
POSITION TAKER: Square.
EURO/US DOLLAR
Almost oversold as it crawls to a new low for the year. A rather grisly scandal at Credit Suisse in Zurich saw its COO resign while exonerating its CEO over spying on their ex-wealth manager who has defected to UBS; the head of global security services has also resigned. Sadly, a contractor who hired the private detectives has committed suicide.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Yesterday’s close below 1480 completes a rather square version of a head & shoulders top with a first measured target at 1410.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
