CNBC reports that today the official Chinese state news agency, Xinhua, said it was announced that in Wuhan’s Women’s prison there are 230 confirmed cases of Covid-19 virus, the Shayang Hanjin prison has another 42 cases, while in Shandong province Rencheng prison has 207. Adding to the malaise the number of passenger vehicles sold in the first 16 days of February fell by 92 per cent from the same period last year.
Data from Japan this morning showed that Purchasing Managers’ Indices (PMI) dropped again in February. Collated by Jibun Bank, manufacturing slipped to 47.6, rather alarmingly services to 46.7, and the composite was 47.0. These are among the lower level in a decade.
DAX 30
A bearish engulfing candle yesterday has put the index today back inside the potential broadening top chart pattern that’s been building since November. Note that bullish momentum has almost completely evaporated.
SHORT TERM TRADER: Small short at 13665; stop above 13850. Target 13000.
POSITION TAKER: Square.
FTSE 100
Stalling at the 50 per cent retracement level again yesterday has turned momentum bearish. City AM front page this morning warns that IATA estimates global airline losses due to the coronavirus’ effect to the economy will cost the industry $30 billion.
SHORT TERM TRADER: Short at 7470; stop above 7550. Target 7230.
POSITION TAKER: Square.
S&P 500
Slipping slightly yesterday with a bearish engulfing candle from the record high.
SHORT TERM TRADER: Considering selling if today’s close is below the little broadening top pattern.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Dipping briefly to a new low for this year but still well within last year’s range.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
The MACD has been decidedly bearish for nearly all of this year.
SHORT TERM TRADER: Square.
POSITION TAKER: Currently considering a short position if we settle today below 1.0850.
GOLD
Allegedly safe-haven buying pushing prices up to a multi-year high, making it almost as overbought as it was early January. Compare and contrast: diamond giant De Beers today posted its worst set of results since being acquired by Anglo American in 2012. Underlying earnings slumped 87 per cent in 2019 and the average diamond price dropped by 20 per cent.
SHORT TERM TRADER: Long at 1600; stop below 1590. Target 1650.
POSITION TAKER: Square.
