HSBC’s interim CEO Noel Quinn announced early this morning that 2019’s pre—tax profit was US$13.35 billion, well short of analysts’ expectations, because of a goodwill impairment worth $7.3 billion – due largely to its European and commercial banking operations. Share buy-backs have been cancelled in 2020 and 2021 as Europe’s biggest bank will work on a ‘’high level of restructuring’’. This will include 35,000 job cuts over the coming 3 years, believed to be mainly in the investment banking operation.
Apple warned yesterday that disruption in China will impact the sales of its iPhones, not only because people in China cannot get out to buy them, but also because global supply chains depend heavily on mainland Chinese manufacturing. This most valuable company says it won’t meet quarterly revenue forecast.
DAX 30
Dipping back inside the upper edge of the potential broadening top which this index has been hugging since November. The Financial Times reports that Germany’s CDU party is being urged to get Chancellor Merkel to step down before her term expires in 2021.
SHORT TERM TRADER: New small short at 13665; stop above 13850. Target 13000.
POSITION TAKER: Square.
FTSE 100
Last week’s shooting star candle created the conditions for another one on Monday (the concept of fractals) which in turn increased downside pressure for a break below 7400. A close below here today sets up for a test of the bottom edge of the massive potential diamond pattern that has held since early 2017.
SHORT TERM TRADER: Short at 7470; stop above 7550. Target 7230.
POSITION TAKER: Considering going short on a weekly close below the diamond’s lower edge.
S&P 500
US markets closed yesterday for a Presidents’ Day holiday on which President Trump took the opportunity to fly in on Air Force One to attend Nascar’s Daytona 500 race. He kicked off proceedings with a ceremonial drive around the track in the car he calls ‘The Beast’ with the competitors falling in line behind him.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Negligible momentum despite Brexit war of words hotting up again.
SHORT TERM TRADER: Long at 1.2970; stop below 1.2900. Target 1.3200.
POSITION TAKER: New long at 1.3040; stop below 1.2900. Target 1.3400.
EURO/US DOLLAR
Trying to cling to Friday’s low so that bearish momentum hasn’t increased. However, this is not a good look for the euro.
SHORT TERM TRADER: Square.
POSITION TAKER: Currently considering a short position.
GOLD
A rather unconvincing attempt at breaking above the upper edge of the symmetrical triangle – which is usually a continuation pattern.
SHORT TERM TRADER: Considering buying if we hold properly above the latest triangle.
POSITION TAKER: Square.
