Today in a letter to the king, Malaysia’s Prime Minister Mohamad Mahatir (94) submitted his letter of resignation. Reuters reports that the ruling coalition was in talks to form a new government that would not include the PM’s chosen successor Anwar Ibrahim. This, and the spread of the Covid-19 virus, sent the Malaysian ringgit down 0.7 per cent so far today, its sharpest drop in 3 years, and the Kuala Lumpur main stock index to a 10-year low.
Today Austria will decide whether to close its border with Italy to all traffic. Already yesterday it stopped a train from Venice at the border because of suspected coronavirus carrying passengers on board. Even as confirmed Italian cases of the disease leap from 3 to 152 in a matter of days, the EU’s Gentilone says he has ‘’complete confidence’’ in the country’s health officials.
DAX 30
Backing off from the top of the potential broadening top chart pattern that’s been building since November as the weekly MACD continues to flash a small warning. Being the last week of the month, watch to see whether we form a second consecutive monthly shooting star candle this Friday. Today’s opening gap might remain in situ and is therefore a breakaway gap.
SHORT TERM TRADER: Small short at 13665; stop above 13750. Target 13000.
POSITION TAKER: Square.
FTSE 100
Gapping lower this morning to test the lower edge of the potential diamond formation that’s been building since early 2017 and probably has a realistic target at 6600.
SHORT TERM TRADER: Short at 7470; stop above 7500. Target 7230.
POSITION TAKER: Square.
S&P 500
Looks like the first cog of this funicular-railway style rally has slipped as we test immediate steep trend line support on gapping lower this morning.
SHORT TERM TRADER: New short on Friday’s close at 3340; stop above 3400. Target 3200.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Trying to form an interim base with a tiny hammer candle last week but bullish momentum remains as elusive as ever.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Trying to hold above 1.0800 but momentum remains clearly bearish.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Stupidly overbought again on the weekly chart as investors think they’re rushing into a safe-haven asset.
SHORT TERM TRADER: Pocketed my profits this morning an will stand aside, probably for the rest of this week.
POSITION TAKER: Square.
