Data published this morning by Britain’s Society of Motor Manufacturers and Traders showed that sales of new cars in the UK fell by 2 per cent in 2019 to 2.31 million units. Europe’s second biggest market for new vehicles peaked at 2.69 million in 2016, has been hit by the diesel emissions scandal, city-centre planned restrictions, weak consumer confidence despite record employment – and Brexit, of course. Adding to auto-maker woes was yesterday’s announcement from Daimler that it will recall almost three quarters of a million cars built between 2001 and 2011, sold in the USA, because of a potential fault in sunroof panels.
After a fortnight’s break, I’m back in the saddle this morning, Monday the 6th January and an Epiphany holiday for some. Tomorrow Britain’s Parliament sits again and it’s Orthodox Christmas where the holiday lasts a few days; so, it’s not quite back to school just yet. Take account of this when trading.
DAX 30
December’s candle ended up as a doji, denoting indecision close to January 2018’s record high at 13600. On a monthly candle basis, the commodity channel index has been threatening to turn down since November and on a daily basis, we had a large bearish engulfing candle on Friday.
SHORT TERM TRADER: New short at 13090; stop above 13475. First target 12885.
POSITION TAKER: Square.
FTSE 100
An uninspiring chart with few salient features - again. The Financial Times reports that, as of the end of business today, the average FTSE 100 chief executive will have earned the equivalent to a whole year’s salary (£29,559) for the average UK worker. We know this because mandatory reporting on executive pay kicks in this year for companies with more than 250 employees. In 2018 they earned 117 times more than the UK mean
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Overbought in December, as it has been for much of the last two years, with a hanging man candle on Friday.
SHORT TERM TRADER: New tiny short at 3223; stop above 3265. Target 3100.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Because bullish momentum is barely there on a monthly basis, cable is still grappling with resistance from the trend lines.
SHORT TERM TRADER: New little long at 1.3075; stop below 1.2900. Target 1.3500.
POSITION TAKER: Square.
EURO/US DOLLAR
On a monthly basis, momentum has been bearish for 18 months; no wonder it’s struggling.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Gapping higher today, reaching its highest point since April 2013, as Middle Eastern tensions escalate.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
