In the Financial Times this morning, based on the fact that most of the US’s biggest listed firms’ Q3 earnings have already been reported, Q4 numbers are expected to grow at a mere 0.8 per cent dragging annualised US economic growth to its lowest level in 4 years. Data from Refinitiv shows that earnings expectations for S&P 500 companies were scaled back from 4.1 per cent as recently as the beginning of October, and 7.1 per cent in July. Classic economists’ thinking while looking through rose-tinted specs.
German September industrial production data published this morning was weaker than consensus expectations, falling 0.6 per cent from August, taking the annualised drop to 4.3 per cent from a 3.9 per cent fall the previous month. This is nearly the lowest reading since January 2010.
DAX 30
As overbought on a daily basis as it’s been in nigh on 3 weeks as we inch up towards the January 2018 record high at 13600.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bullish momentum isn’t picking up despite yesterday’s little rally to the highest price since the start of October.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Overbought again as we creep higher.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Electioneering in the UK has got off to a scrappy start and I fear will turn into a bare-knuckle fight. I wonder how the dozens of new candidates will cope.
SHORT TERM TRADER: Long at 1.2950; stop below 1.2800. Target 1.3150.
POSITION TAKER: Long at 1.2950; stop below 1.2750. Target 1.3350.
EURO/US DOLLAR
Hovering on Fibonacci 38 per cent retracement support at 1.1066 (interesting number) as it threatens to complete an interim double top on a daily close below here.
SHORT TERM TRADER: Small long at 1.1150; stop below 1.1065. First target 1.1250.
POSITION TAKER: Square.
GOLD
I can’t believe we’re still here! Note that silver’s seen a bit of a slide this week.
SHORT TERM TRADER: Short at 1520; stop above 1520. Target 1440.
POSITION TAKER: Short at 1507; stop above 1540. Target 1440.
