Morning traders. What on earth is EBITDAC?! This is madness. This is the panic button, especially if more and more companies believe that this will help the markets. Earnings Before Interest Taxation Depreciation Amortisation and Coronavirus!? I don’t remember studying that at university!
Market movers today
Today we get US manufacturing PMI, retail sales for April and consumer confidence for May. Retail sales will show a big drop in April. Consumer confidence for May will also show a further move lower in optimism as big job cuts continued this month. US initial jobless claims amounted to 3m last week; hence, unemployment in the US continues to rise so why not just print more money? Fed has started its programme to directly support the corporate debt market. Money printer go brrr!
Watch for news about Trump’s possible sanctions on China because he’s made his living from taking a tough stance, so he would pull out of the phase-one trade deal and start putting tariffs back on China, despite hurting the economy even further and jeopardising important farmer votes in key swing states if China stops agricultural purchases.
Bank of England’s Governor Andrew Bailey said yesterday that the central bank is not currently considering using negative rates as negative rates would create problems for banks. Bailey’s comments follow Fed chair Jerome Powell’s on Wednesday when he also dismissed the possibility of negative rates.
DAX Analysis
During the last session, we saw the DAX 30 reach a session high of 10514 and a session low of 10163 giving us a range of 351 points compared to the average daily range of 275. At the close of play yesterday, we closed at 10459 which was 1295 points below the 200EMA and 288 points below the 50EMA.
In the DAX member’s channel we have a nice short for over 130 points and the FX member’s channel got seven signals. Go to the member’s site at members.thedaxtrader.co.uk for more details
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 10383. Today’s initial balance is between 10433 and 10510, so watch for a momentum break of either of those two levels. The value area high is currently 10469 and the value area low is currently 10295.Here are some more levels to watch out for:
- The 5 EMA (Daily): 10554
- The 8 EMA (Daily): 10596
- The 50 EMA (Daily): 10747
- The 200 EMA (Daily): 11754
To keep up with the economic calendar and the latest price action, click this link to open up the DAX chart.
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