Ambassadors from the remaining 27 EU countries yesterday published the outlines of their negotiating stance, and once again reminded that the process would be ‘’very hard’’ and might fail if the Irish border isn’t secured. Reuters reports. Some say their section on financial services is particularly vague with no date for an ‘assessment of equivalence’’. Britain publishes its stance tomorrow. Separately, Barney Reynolds, specialist financial regulation lawyer at Shearman & Sterling, believes that UK supervision of many of the EU’s biggest banks ‘’has protected the world’s financial markets from significant oversights in EU law’’ because EU financial regulations misrepresent the risk levels of Eurozone debt.
Data published overnight by the British Retail Consortium showed that the shop price index fell again in January, increasing to an annualised 0.6 per cent decline from December’s 0.3 per cent fall. Driven by weak consumer demand non-food items fell in value at the fastest pace since May 2018. Anecdotally I’ve heard that staff at German discounter supermarkets have been put on very reduced hours as consumer demand, even for food, is off significantly – as it often is at this time of year.
DAX 30
Rushing around like a headless chicken as the index tried to keep inside the potential broadening top chart pattern. Giving up the ghost at the end of the day to close on a daily basis below the bottom edge, taking bearish momentum to its strongest level since February 2018.
SHORT TERM TRADER: Re-sold on yesterday’s close at 12720; stop well above 13000. Target
POSITION TAKER: Will sell if we close below 12800 on Friday.
FTSE 100
Bearish momentum isn’t all one might expect after two, consecutive, large Marabuzo candles.
SHORT TERM TRADER: Will re-sell on a daily close below 6970.
POSITION TAKER: Short at 7250; stop above 7400. Target 6600.
S&P 500
Observe, an inwardly digest, the power of the broadening top chart pattern. In one fell swoop we have retraced half of the extended rally since October 2018’s interim low; expect the index to try and hold around this point (3125) until the end of this week.
SHORT TERM TRADER: Re-sold on the break below the larger of the two broadening top patterns, at 3240; stop above 3270. Target 3065.
POSITION TAKER: Will sell on a weekly close below 3200.
BRITISH POUND/US DOLLAR
No pick-up in bullish momentum despite yesterday’s little bounce.
SHORT TERM TRADER: New tiny long at 13000; stop below 1.2845. Target 1.3180.
POSITION TAKER: Square.
EURO/US DOLLAR
Bearish momentum erased after such a tiny rally.
SHORT TERM TRADER: New little long at 1.0880; stop below 1.0775. Target 1.1000.
POSITION TAKER: Square.
GOLD
Skidding and slipping as we try to hold above Friday’s close.
SHORT TERM TRADER: Might re-buy around 1597.
POSITION TAKER: Square.
