Last month US co-working firm called off its planned tens of billions estimated flotation on a US stock exchange as conditions weren’t favourable. Yesterday its biggest investor, Japanese funder SoftBank announced it would pay $5 billion to control 80 per cent of the firm and pay its founder off. Today in Australia Reuters reports that Southeast Asia online realty company PropertyGuru, currently owned by private equity, was cancelling its IPO due to market uncertainty. This follows last week’s A$1 billion IPO of another firm owned by KKR, lender Latitude.
The European Commission in Brussels yesterday told France and Italy to review proposed budgets presented for 2020, the latter because it doesn’t ‘comply with the debt reduction benchmark’, while the former could breach rules on public debts. Belgium, Portugal and Spain have been asked to flesh out incomplete budget plans, while Finland was warned over its spending.
DAX 30
Almost overbought as we retreat from last week’s spike high.
SHORT TERM TRADER: Small short at 12625; stop well above 12825. Target 11880.
POSITION TAKER: Square.
FTSE 100
Holding in a very narrow range despite the people in Westminster.
SHORT TERM TRADER: Small short at 7140; stop above 7280. Target 7025.
POSITION TAKER: Square.
S&P 500
The commodity channel index is trying to turn down on yesterday’s harami (inside day) pair of candles, denoting indecision. Worth noting that the latest iteration of nearly-free cash, which Fed Chairman Jerome Powell calls ‘non-QE’ has been in demand daily with tens of billions being requested from the Fed window, in exchange for Treasury bills, continuously since the plan was announced. This involves the Fed buying $60 billion in T-bills monthly, $75 billion in overnight repos, and $35 billion in term repos fortnightly. The real question is: who exactly needs so much ready cash?
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Pulling back just a little while maintaining decent bullish momentum.
SHORT TERM TRADER: Long at 1.2950; stop below 1.2600. Target 1.3150.
POSITION TAKER: Long at 1.2950; stop below 1.2535. Target 1.3350.
EURO/US DOLLAR
Pulling in its horns a little to retrace to first Fibonacci support.
SHORT TERM TRADER: Small long at 1.1150; stop below 1.0990. First target 1.1250.
POSITION TAKER: Square.
GOLD
Flatlining despite a persistently bearish MACD.
SHORT TERM TRADER: Short at 1520; stop above 1535. Target 1440.
POSITION TAKER: Short at 1507; stop above 1560. Target 1440.
