On Friday, the Bank of Italy placed southern Italian Banca Popolare di Bari under special administration because the government failed to approve a rushed rescue package. It is believed the Italian cabinet met last night to try to save the cooperative lender, reports City AM. Also in Italy over the weekend a new anti-fascist movement called the ‘sardines’, which sprung up a month ago in Bologna (on mounting fears that Salvini’s League party might win a regional election in this liberal left-leaning stronghold), massed in their thousands in Rome.
Overnight Japan’s Ministry of Economy, Trade and Finance released October’s Tertiary Industry Index. At -4.6 this is the third worst reading since 1990, maybe more, matched or exceeded only in 2014, 2011, and 1997 when the introduction of sales tax had a crushing effect on the economy and business confidence.
DAX 30
Almost overbought still with a series of 5 consecutive weekly dojis and last week a hanging man where the range was bigger than the previous weeks; something of the feeling of a bearish engulfing week.
SHORT TERM TRADER: Square and will remain so over year-end.
POSITION TAKER: Square.
FTSE 100
Great media excitement as to prospects for the services industry in the UK following the ‘stonking’ Boris Johnson win, delivering what is in effect a second referendum on Brexit with almost twice as many favouring leave over Labour. With 109 fresh conservative MPs, the House should have a very different feel as most candidates who switched allegiances or stood as independents lost their seats, plus the earlier cull of dead wood means a younger profile.
SHORT TERM TRADER: Square and unimpressed with post-electoral price action.
POSITION TAKER: Square.
S&P 500
Clearly overbought again as it inches to a new record high amid hype and hope that a stage 1 trade deal between the US and China has been reached and new tariffs didn’t kick in on Sunday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Bullish momentum increases again as we settle clearly above old trend line resistance and managing to hold on to most of last week’s gains this morning.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Precious little momentum and rejected once again by secular trend line resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Holding just under the 1480 area as bearish momentum decreases.
SHORT TERM TRADER: Took profits this morning as I’m totally bored with these positions.
POSITION TAKER: Short at 1507; stop above 1520. Target 1448.
