Following the US Federal Reserve’s rate-setters meeting yesterday chairman Jerome Powell, who appears to be deliberately adopting a low profile, noted that the new virus outbreak in mainland China would have at least a short-term effect. Keeping the Fed Funds target unchanged at 1.5 to 1.75 per cent, he also noted that US manufacturing had yet to see a decisive recovery and that the inflation target remains at the centre of its economic policy.
The British Society of Motor Manufacturers, the car-makers trade body, reports that auto production fell by 14.2 per cent in 2019. The number of vehicles sold was 1.3 million, the lowest in a decade. One in every 14 manufacturing jobs is linked to vehicle production and directly employs 168,000 people. Today long-standing Jaguar Land Rover CEO, the German engineer Ralf Speth, said he won’t be renewing his contract which expires in September this year.
DAX 30
Yesterday’s little doji against the bottom of this month’s small broadening top chart pattern kept momentum bearish and might be the central candle in a 3-candled evening star chart formation. Another potential small bearish sign. Deutsche Bank results out this morning showed a €1.6 billion loss in Q4 2019 taking the loss for the year to a worse than expected €5.7 billion.
SHORT TERM TRADER: Short at 13460; stop above 13600. Target 13000.
POSITION TAKER: Square.
FTSE 100
Like the DAX with a tiny doji against the bottom of the double top which built up over year-end. Here too momentum is clearly bearish and today we might form an evening star 3-candle pattern with the doji at its centre.
SHORT TERM TRADER: Short at 7470; stop above 7650. Target 7200.
POSITION TAKER: Square.
S&P 500
Momentum is only just bearish as price action has been contained within a relatively tight range.
SHORT TERM TRADER: Short at 3260; stop above 3350. Target 3100.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
No momentum as the countdown to Friday’s Brexit is well under way.
SHORT TERM TRADER: Small long at 1.3075; stop below 1.2900. Target 1.3500.
POSITION TAKER: Square.
EURO/US DOLLAR
A second consecutive hammer-style candle suggests the euro is starting to try and base. Pity the MACD is so relentlessly bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Pushing up off the 1560 area as a small whiff of risk-off thinking is in the air.
SHORT TERM TRADER: Small long at 1578; stop well below 1540. Target 1610.
POSITION TAKER: Square.
