At 10:00 pm this evening Prime Minister Boris Johnson will deliver a pre-recorded state of the nation address. At 11:00 pm GMT, to suit Brussles’ midnight, Britain will officially no longer be the 28th state in the political block that is the European Union. The PM and his pals will be toasting the moment with classy British bubbly Nyetimber, probably in Downing Street, though the event has been deliberately kept low key. Today the Financial Conduct Authority will be looking into what may have been a leak of the Bank of England’s interest rate decision yesterday – Mike Carney’s last – and the sudden surge in the value of cable. UK newspaper are publishing special souvenir issues today.
As is so often the case, the authorities are slow to catch on and slower still when making decisions. After praising how the Chinese authorities were dealing with the coronavirus outbreak, yesterday the World Health Organisation decided to call it a public health emergency of international concern. The US and Japan have advised all their citizens not to travel to China.
DAX 30
Bearish momentum increased a little on yesterday’s hanging man candle – another small bearish sign. Released early this morning French Q4 GDP fell by 0.1 per cent Q/Q taking the annualised rate down to just 0.8 per cent from a 1.4 per cent increase in Q3.
SHORT TERM TRADER: Short at 13460; stop above 13500. Target 13000.
POSITION TAKER: Square.
FTSE 100
A rather irregular evening star 3-candle pattern with a doji at its centre developed, with elements of a harami pregnant pause yesterday. Note that bearish momentum has increased.
SHORT TERM TRADER: Short at 7470; stop above 7550. Target 7200.
POSITION TAKER: Will sell on a close below 7370 today.
S&P 500
Momentum marginally more bearish on yesterday’s hanging man as this index does its utmost to hold near the record high.
SHORT TERM TRADER: Short at 3260; stop above 3350. Target 3100.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
In retrospect yesterday’s rally is unimpressive indeed.
SHORT TERM TRADER: Small long at 1.3075; stop below 1.2900. Target 1.3500.
POSITION TAKER: Square.
EURO/US DOLLAR
Momentum a lot less bearish on yesterday’s tiny rally.
SHORT TERM TRADER: New small long at 1.1025; stop below 1.0980. Target 1.1160.
POSITION TAKER: Square.
GOLD
Half-hearted moves this week.
SHORT TERM TRADER: Small long at 1578; stop well below 1540. Target 1610.
POSITION TAKER: Square.
