Yesterday S&P downgraded US department store Macy’s to BB+ - junk – because it felt the outlook for retail was ‘’competitive’’. Yesterday the same firm said that Bahrain and Oman might have to be downgraded if the viral outbreak last longer than expected, CNBC reports. This is because these countries have high fiscal breakeven oil prices and reduced oil demand beyond March would hit government budgets.
A report in the Financial Times today looks at where remote working is spreading, and why. In Silicon Valley, the trend has been established for some time, in part to allow employees leeway to better balance work/life commitments. It’s sprung up very recently in China as workers are prevented or unwilling to return to their place of work. Schoolchildren have also been affected either by teaching establishments remaining closed for an extra-long Lunar New Year holiday or because after-school activities have been cancelled. In Japan tens of thousands of professionals have been asked to work from home to contain a possibly coronavirus outbreak in Tokyo.
DAX 30
Bullish momentum eases considerably on yesterday’s dragonfly doji at the upper edge of the potential broadening top which this index has been hugging since November. Jaguar Land Rover is said to have airfreighted small car parts (key fobs) in suitcases from China and warned it can keep going for just another fortnight with its current stock of parts. Now the perils of a global supply chain and just in time manufacturing surface, exposing it for the cheap production method it is.
SHORT TERM TRADER: Small short at 13665; stop above 13850. Target 13000.
POSITION TAKER: Square.
FTSE 100
Something of a swoon yesterday formed a dragonfly doji – which hasn’t materially altered the landscape.
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
Another stock index where a little doji has wiped off a lot of bullish momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Hard to drum up any enthusiasm when all the market does is snake sideways.
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
Bearish momentum is stronger than at any point last year as February has been dominated by losses for the euro against many currencies.
SHORT TERM TRADER: Square.
POSITION TAKER: Currently considering a short position.
GOLD
Bullish momentum snapped higher on yesterday’s break above the upper edge of the symmetrical triangle – which is usually a continuation pattern.
SHORT TERM TRADER: New long on yesterday’s strong close (1600) above the latest triangle; stop below 1575. Target 1650.
POSITION TAKER: Square.
