Following Monday’s public holiday for the Emperor’s birthday, Japan official Shigeru Omi of the Japan Community Health Care Organisation said today: ‘’We are at the crossroads. Local transmission is already going on’’ as 160 confirmed Covid-19 cases were reported in 16 different prefectures. Like those in Europe and the US yesterday, stocks in Tokyo and Osaka tumbled, partly because they were catching up.
Yesterday evening in New Delhi, close to where President Trump and his entourage will stay, violent clashes broke out over new citizenship laws introduced at the end of last year. Police used tear gas and smoke grenades to try and disperse the thousands arguing for and against the new rules. CNBC states that 90 were injured and 5 killed in the melee, including a policeman.
DAX 30
Pretty much oversold on the RSI at yesterday’s close while keeping inside a re-drawn potential broadening top chart pattern. Monday’s opening gap remains in situ and is possibly a breakaway gap.
SHORT TERM TRADER: Took hefty – and quick – profits at 13000 as planned.
POSITION TAKER: Square.
FTSE 100
Slumping dramatically – on good volume – through the bottom edge of our huge diamond top chart pattern, the sort of effect an important move usually has. Oversold as we hover just above December’s lows as investors debate tactics – which can often be summed up as ‘sell first and ask questions later’.
SHORT TERM TRADER: Another pot of cash chucked in the swag bag as profits taken at 7230 as planned.
POSITION TAKER: New short at 7250; stop above 7400. Target 6600.
S&P 500
Quite the clear-out, reminding how gains and losses are asymmetric. Almost oversold as we erase almost all this year’s rally to a new record high. Currently trying to hold above the lower edge of a slightly badly drawn potential broadening top chart pattern. Today the Financial Times reports that some of the World Bank’s pandemic bonds – which pay out in cases of infectious diseases – are trading at just 57 cents in the US dollar.
SHORT TERM TRADER: Took profits just ahead of my original target at 3200 because the move was so very fast.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Still trying to hold above 1.2900 despite a lack of bullish momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Bearish momentum eased again yesterday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Very interesting as a complete lack of follow-through yesterday ended forming a shooting star interim high. Today we have filled the weekend’s gap, meaning this is not exactly the start of an exciting new move, just a bit more of the same, really.
SHORT TERM TRADER: Might re-buy around 1597.
POSITION TAKER: Square.
