Somehow, on a routine patrol yesterday, Mexican police managed to capture and detain drug lord El Chapo’s son, Ovidio Guzman Lopez. His Sinaloa drug cartel fought back with machine guns on the top of pick-up trucks, peppering the streets of the city of Culiacán with gunshots. Cars, buses and trucks burst into flames as traffic stopped and people fled in a panic, the military deploying myriad vehicles. Nevertheless, the cartel managed to free Guzman Lopez from prison, helping other inmates to escape too.
Data from Japan this morning show that retail price inflation slowed again in September, to an annualised rate of just 0.2 per cent (lowest in 3 years) and 0.3 per cent in the more closely watched CPI ex-fresh food category (lowest since April 2017). Across the sea, Chinese Q3 GDP came in at 6 per cent, down from 6.2 per cent annualised to Q2 2019, and the lowest since this series started in 1992.
DAX 30
As overbought as it was in July and now with a gravestone doji yesterday. Today EU leaders have the unenviable task of discussing a new budget for the remaining 27 nations, estimated at €1.1 trillion for the 2021 to 2027 period. This represents between 1.03 and 1.08 per cent of Gross National Income in the block, according to figures supplied by Reuters. The European Commission was aiming for 1.1 per cent of GNI while the EU Parliament suggested 1.3 per cent off GNI. Meanwhile Germany wants this capped at 1 per cent.
SHORT TERM TRADER: New little short at 12625; stop well above 12825. Target 11880.
POSITION TAKER: Square.
FTSE 100
Sagging a tad again as the pound trades happily around $1.2850 and EUR/GBP at £0.8650.
SHORT TERM TRADER: Small short at 7140; stop above 7280. Target 7025.
POSITION TAKER: Square.
S&P 500
Simply nothing happening, so bullish momentum has eased a little.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Overbought, but then what would you expect from a currency pair that’s been under relentless selling pressure for 5 years? We also have a potential double/triple bottom at $1.2000 on the monthly chart. Today on BBC Radio 4 the business presenter asked the FX guest analyst how the foreign exchange market would react on Saturday to the vote at Westminster. Flatly she replied ‘’the FX market doesn’t work on a Saturday’’. You just cannot get the staff.
SHORT TERM TRADER: Will consider going long again on a weekly close above 1.2800.
POSITION TAKER: Square.
EURO/US DOLLAR
Pulled up in cable’s slipstream on increasing bullish momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
I’m afraid that, once again, I have nothing to add here.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
