Retaliating against unfair subsidies given to Airbus, as decided by the WTO, from the 18th October there will be a 10 per cent tax on European aeroplanes bought in the States, 25 per cent on whisky and coffee, tools and machinery also. The list goes on with 25 per cent tax on cheese, olive oil and frozen meat and pork products, though no mention of Prosecco or wine – where the US is the biggest importer by value though not by volume; that accolade goes to Germany.
Data released yesterday show that last month, September, was a very poor time to be a car dealer or maker. Sales are expected to be down by a total 12 per cent, hardest hit Honda, Nissan and Toyota with double digit declines over 14 per cent. Ford sales dropped just 4.9 per cent while GM’s were actually up 6.3 per cent thanks to redesigned pickups and new crossovers. Separately, it is estimated that about one third of auto-loans currently being issued run to 7 years and that some lenders are contemplating going out to 8 years to increase the so-called affordability on car repayments. Ten years ago, only 10 per cent of car loans had 7-year maturities.
DAX 30
As if we hadn’t got enough on our plates in October, what with Brexit, Halloween and the clocks going back, now stock markets have started the month on the wrong foot. It also underlines the asymmetry of moves where it took most of September to rally and then the drop (of the same points) took just 2 days.
SHORT TERM TRADER: Short at 12365; stop above 12400. Target 11600.
POSITION TAKER: Short at 12350; stop above 12500. Target 11400.
FTSE 100
It’s taken just 2 working days to undo the rally of the previous 6 weeks; see how they run! Momentum has only just turned bearish, mind you, so there’s plenty of room to pick up speed.
SHORT TERM TRADER: Took profits at my target 7100 on the short I added yesterday. Quick work when you can get it.
POSITION TAKER: Will re-sell depending on Friday’s close.
S&P 500
Falling out of bed, bearish momentum increasing a little as we undo 61 per cent of the rally of the last 2 months. Now President Trump lost his temper with journalists at a press conference yesterday, lambasting all and sundry.
SHORT TERM TRADER: Small short at 2945; stop above 2965. Target 2820.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Another long-legged doji underlining the jitters in this currency pair.
SHORT TERM TRADER: Small long at 1.2290; stop well below 1.2200. Target 1.2500.
POSITION TAKER: Square.
EURO/US DOLLAR
The MACD less bearish as we form a potential tiny rounded bottom against 1.0900.
SHORT TERM TRADER: Tempted to go long if we can crawl above 1.0965.
POSITION TAKER: Square.
GOLD
Bouncing as safe-haven status reasserts itself a bit, but just look at the MACD. Pesky though as we’re back above what I thought was a neckline. Why is price action here always so messy?
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
