In its ratings report published yesterday Moody’s commented on the fact that India was seeing a significant economic slowdown – growth at a 6-year low in Q2 2019 at 5 per cent; for this reason, the outlook was marked ‘as ‘negative’ rather than the previous ‘stable’, report CNBC. They also felt that growth next year would be ‘materially lower than in the past’ and that the current government hadn’t addressed ‘economic and institutional weaknesses’. To this add the toxic mix of appalling pollution in New Delhi, poor job creation and a crumbling banking and shadow finance system. The rating remains at Baa2 where it’s been since 2017.
City AM this morning reports that, from data collected and complied by Deloitte, most of the world’s 50 fastest growing tech firms are UK based. In fact, two thirds of the winners, whose average 3-year growth was 3,878 per cent (‘nothing short of exceptional’ according to partner Duncan Brown), were in London. At number 1 was Revolut, racking up 7 million customers and a staggering 48,477 per cent growth over the last 3 years.
DAX 30
Very overbought on a daily basis. Tomorrow, the 9th November, marks 30-years since the fall of the Berlin Wall – a city which has thrived since then and is today Europe’s most populous metropolis.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Bullish momentum sagged again on yesterday’s tiny spike high. Tomorrow, starting at 11:00 GMT, is the Lord Mayor’s show of which one gets a good view from FT headquarters at Bracken House.
SHORT TERM TRADER: Might sell yet again depending on today’s close.
POSITION TAKER: Square.
S&P 500
Overbought with a little spike high yesterday denoting a little instability as we trade above the top of the big broadening top pattern which started in February 2018; there is a smaller one which kicked off in March this year which remains intact. Worth noting that today, a student protestor in Hong Kong, who fell off a parking lot rooftop last weekend, has died of his injuries.
SHORT TERM TRADER: Looking for imminent signs of topping.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Forced to re-draw my pennant pattern due to zero bullish momentum.
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
Yesterday’s close below retracement support at 1.1066 completes an interim double top; this has increased a bearish MACD. Yesterday evening Chancellor Angela Merkel, replying to President Macron’s comment that NATO was ‘’brain dead’’, saying the organisation was the ‘’cornerstone of our security’’.
SHORT TERM TRADER: Stopped out of my long position, switching immediately to a short (not something I do very often) on yesterday’s close.
POSITION TAKER: Square.
GOLD
Let’s see if we get some traction this time around, the second daily close below 1480 since early August.
SHORT TERM TRADER: Short at 1520; stop above 1520. Target 1440.
POSITION TAKER: Short at 1507; stop above 1540. Target 1440.
