US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference yesterday; the biggest tax reform plan since 1986. Trump has proposed slashing corporate tax from the current rate of 35% to 15%; from one of the highest in the world to one of the lowest. In terms of personal income tax, the…
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DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1) The consolidation in front of the ECB continues with little real direction on the DAX in the wake of the initial strong upside breakout on Monday. I discussed the tendency for the DAX to follow sharp upside breaks with a period of correction and…
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Using basic charts patterns and correlation, GBPJPY looks set for a correction to the downside this morning. Monthly: The last 117 months of price action has formed a descending triangle formation that has a bias to eventually break lower. The Hammer base from October 2016 offers an immediate upside bias. Last month’s lack of clear…
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Market Overview As Donald Trump approaches 100 days in office (will be on Saturday 29th April), markets have been preparing for his “huge” tax plan. However the announcement of Trump’s tax plan has left more questions than answers as the dollar and equities sell off. Markets have subsequently given the announcement a fairly luke-warm response.…
Read moreWe exited a long vertical call spread in natural gas on Tuesday due to April expiration of the options and the underlying futures. This indeed is a reminder that options are indeed a decaying asset that one needs to be aware of at all times. Nevertheless, we are seeing renewed interest with the new active…
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The Euro is trading slightly lower against its US counterpart in today’s trading after rallying for the past few days and some say this is just a small bump in the road and the European currency has further to climb. At 6.10pm(GMT) the Euro was trading at $1.0873 down from $1.0925 in yesterday’s trading. After…
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Background Gold has spent a week or so retracing since topping at $1,297.4/oz on April 17. Yesterday was a good day for the bears as we saw selling from $1,279.9 to $1,262.8, posting a red candle with Marabuzo resistance at $1,271.7, which is also an intra-day reference. We have $1,261.1 and $1,256.6/oz cited as important…
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Background Wall Street got excited yesterday as fast-food group McDonald's delivered first-quarter results that were better than expected. Q1 revenue was $5.68 billion, beating analysts' average estimate of $5.53 billion, and EPS was $1.47, above a market expectation of $1.34. But investors were most satisfied with Q1 global comparable sales growth of 4% year-on-year, which…
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Last week the US President Trump stated on Twitter that he will “unveil his major tax reform plan on Wednesday, April 26." The recent reported US Q1 corporate earnings have been outperformed, pushing US stocks up. Tuesday evening, the Dow Jones index hit a 6-week high of 21022, and the S & P 500 index…
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DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1) A consolidation is taking hold in front of the ECB but is the DAX due another correction? The strong breakout to new all-time high ground has started to slow and early moves today are lower. The concern is that in four of the five…
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