Trading with point and figure

gbpjpy in a pump or dump 144.50 area
144.70 is mega horizontal rez
marked in our chart at the weekend
 
oil/wti
lookin like it could dump 48.00
48.50 neeeds to fail first
not good for stocks
turns nasty if 48.50-49.00 is rez on a bounce
bears will see that and come in for a quick kill
otherwise..bulls need to hold 48.00-48.50 as supp
 
eurusd in rez 1.0925-1.0950
areas marked on chart placed at the weekend
its in rez....we could quite easily get 1.1100
 
Morning folks,

Ftse... 7250 significant rez area...needs to get through it....scalps short.

above 7260...then 7290-7300.... can't get through 7250 ..probably settle around 7220. lets see.
 
- Digesting slew of political news and Asia/US PMIs, as UK / Eurozone
Manufacturing PMIs and US Auto Sales awaited; FOMC meeting, NFPs
and another large slug of corporate earnings the focus for the week

- UK Manufacturing PMI: modest further slip expected, but overall still
seen at solid levels of activity

- US Auto Sales: modest recovery seen after steep Q1 decline, overall
pace of sales still solid, but concerns about outlook proliferating


..........................................................................

********************
** EVENTS PREVIEW **
********************

As much of the world returns from the May Day bank holiday, there is plenty of political noise from the long weekend to digest: US Congress's ostensible Budget 'deal'; Mnuchin's talking up his tax cut despite the lack of details, above all on how it might be funded, a renewed attempt by the Trump administration to secure another vote on Healthcare; Trump talking about 'breaking up' the largest US banks; along with rising tensions between the UK and the EU Commission on initial Brexit negotiations; and former Italian PM Renzi's decisive victory in the PD primary, which may sell see a general election sooner (i.e. 2017) rather than later (2018). Meanwhile in China the PBOC has cried foul on the current rapidly escalating level of leverage in its economy, above all the finance sector, citing high levels of stimulus spending from government paired with poor corporate management and financial supervision as key factors. Statistically there are somewhat disappointing PMI and ISM readings from Asia and the US to digest ahead of those in Europe, while the US looks to Auto Sales. In central bank terms, there was no surprise that the RBA held rates at 1.50%, and the accompanying statement, it was clear that with the global economy improving and inflation remaining subdued, the RBA is above all focussed on the extent to which its macro-prudential measures will serve to help to cool its very overheated housing market. However markets are rather focussed on tomorrow's FOMC statement, and the extent to which it reaffirms the current two further rate hikes in 2017 expectation, and the extent to which it acknowledges a slightly softer tone to some incoming economic data (which many FOMC members would probably view as sending a rather too dovish signal particularly given the vicissitudes of Q1 seasonality) or whether it drops a gentle hint of a June rate hike. The US Treasury market is starting to evidence some signs of strain, even if the rise in longer dated yields would be best described as marginal, but the prospect of 50 and 100-yr debt as well as expectations that the May quarterly refunding announcement will see a rise in auction sizes is starting to weigh

Of the remaining Manufacturing PMIs, there will be some interest in whether the Eurozone PMIs confirm the continued strength seen in preliminary readings, which in recent months has tended to see some downward revisions in final readings. However the UK reading will be the primary point of interest, with a further marginal dip to a still solid 54.0 from 54.2 expected. Given the generally softer readings elsewhere, the risks would appear to be to the downside of forecasts, though rather more perspective than was on display in reaction to the March reading would be beneficial, assuming any larger than expected fall keeps the index above 53.0. In respect of US Auto Sales, after three consecutive declines in the SAAR rate from December's cyclical high of 18.43 Mln to just 16.62 Mln in March, April's Sales are expected to rebound to a 17.20 Mln SAAR pace, though this would still represent a 2.0% fall in y/y terms, and would only have been achieved on the back of new vehicle incentives that are ca. 14.0% higher than the same month in 2016. Given rising concerns about sub-prime auto loans, and rising defaults, the auto sector picture is looking rather less healthy, and by extension there will be some concern that the mooted bounce in overall Q2 personal consumption from a poor Q1 would be difficult to achieve without a stronger contribution from auto spending.


from Marc Ostwald
 
********************* OVERNIGHT HEADLINES ********************

China - Caixin PMI: April factory growth slows to weakest in 7 months
- April Caixin Manufacturing PMI cools to 50.3 in April vs 51.2
- Sharper drop than NBS Mfg PMI at 51.2 (6-mth low) vs
expected 51.6, March 51.8
- Private, official factory surveys show growth cooled more than
expected
- But growth still seen solid, no hard landing risk in near term
- Economists attribute slowdown to cooling commodity prices,
property market curbs

China - China leverage rising at "alarming pace" - central bank official
- Stocks, bonds recently roiled by stiffer shadow banking curbs

China/Japan: BOJ's Kuroda welcomes expansion of China-led infrastructure bank
- ADB, World Bank alone cannot meet infrastructure needs - Kuroda
- Former ADB head calls for "healthy competition" among lenders
- Geopolitical conflict "not good for anyone" - Kuroda

Japan - April Services PMI falls to 52.2 vs 52.9 as new business
growth slows

Sth Korea - April CPI inflation slows, but still near cen bank target
- April CPI -0.1% m/m +1.9 pct y/y vs. f'cast flat / 2.0%
- Utilities, fresh vegetables prices lead to softer inflation

Australia - RBA leaves Cash Rate target at 1.50% as expected

Sth Korea - April factory activity shrinks for 9th month but at more modest
pace - PMI
- April Manufacturing PMI rises to 49.4 vs. March 48.4
- New Export Orders index falls to 48.1 vs. March 49.1

Indonesia - Annual inflation rate rises to 13-month high in April
- April CPI 0.09% m/m 4.17% y/y vs. f'cast 0.01%/4.08%
- April core CPI 3.28% y/y vs. f'cast 3.35% y/y

Greece/EU - Greece, lenders reach deal on bailout reforms - Finance Minister
- Incl labour reforms, pension cuts, tax rises; paves way for debt
relief talks
- Must legislate measures before EZ fin mins approve loan
disbursement
- Needs funds to repay EUR7.5 bln maturing in July, Eurogroup
meets May 22

U.S.A. - Budget deal may map U.S. Congress road ahead, via Trump bypass

U.S.A. - White House seeks quick vote on healthcare overhaul but hurdles
remain

U.S.A. - US regulators to delve into 'too big to fail' designation
- Trump says actively considering breaking up big banks
- Bloomberg TV

U.S.A. - Trump administration set to replace top banking regulator Thomas
Curry - WSJ

U.S.A. - Treasuries: Looming long duration supply sizzles steepeners
- IFR News
- Bernanke Rare One Hour On-Air Interview, "3% Growth a Long-Shot"
- Mnuchin Likes Ultra-Longs, "Thank Me For Your Bank Stocks Doing
Better"
- Dour Data Dings Yields, Then Supply-Steepening Sellers
5s/30s 116+ Bps
- Tuesday's Trade: Auto Sales, FOMC 2-Day Starts



------------- TOP FIXED INCOME / FX / COMMODITY HEADLINES ----------------

** FOREX **

> Dollar hits 1-month high vs yen as US yields rise on Mnuchin comments
> Le Pen supporters shrug off euro flip-flops, back Frexit idea
> EM Asia: FX-Most Asian currencies firm; Philippine peso slips
> Australia, NZ dlrs near multi-month lows on USD, euro and pound
> C$ weakens as oil prices fall, Fed decision looms


** FIXED INCOME **

> JGBs track Treasuries lower, moves limited before key events
> U.S. 30-yr yield above 3 pct after Mnuchin's bond remarks
> Asia Credit: Impetus may be lacking after subdued US session

> US IG: US corporate bonds make a quiet start to May
> Rising rupee recharges Masala bonds
> Prices fall as U.S. Treasury's Mnuchin, Trump comments weigh
> Puerto Rico GO bonds up on federal healthcare aid as debt deadline looms
> S.Korea April inflation slows, but still near c.bank target
> Budget deal may map U.S. Congress road ahead, via Trump bypass
> Canadian subprime lenders race to shore up confidence as deposits withdrawn
> U.S. top court deals setback to Miami in predatory lending suits

** COMMODITIES & ENERGY **

> Oil edges down as rising output stokes concern on oversupply
> Gold steady on stronger equities, dollar
> Firmer copper prices pull most metals higher
> China steel, iron ore jump to near 1-mth highs on restocking demand
> Wheat rises for 4th day as snow hits U.S. crop; corn eases
> Arabica coffee extends bounce above 11-month low
> CME live cattle hold modest gains, hogs end lower

> Freeport Indonesia mine workers hold rally at start of planned strike
> Elliott to court BHP's Australian shareholders on overhaul -sources
> Mineral-rich area of Papua New Guinea lifts decades-old ban on new mining
> U.S. Congress secures health benefits for coal miners
> Sherritt gives partners bigger stake in nickel mine for debt relief
> Australia does not rule out government loan for Adani mine project
> Japan's Sojitz aims to increase coking coal assets - CEO
> POLL-Banks hold gold price view near $1,250/oz as rally seen abating
> POLL-Palladium tipped for highest year on record in 2018
> Anglo to restart El Soldado mine in Chile after permit approval
> Libya's oil output hits 760,000 bpd, highest since 2014 - NOC
> Venezuela resumes light oil shipments to Cuba -PDVSA data
> Pembina buys Veresen for $7.1 bln as pipeline sector consolidates
> Platts to launch low-sulphur marine gasoil assessments
> U.S. Interior chief signs order for new offshore oil-exploration plan
> Big short position on biofuels generated profit for Icahn's refiner
> Trump says open to raising gasoline tax to fund infrastructure: Bloomberg
> How North Korea gets its oil from China: lifeline in question at UN meeting
> Two employees out of hospital after BP Whiting refinery accident
> Saudi Aramco cuts June Arab Light OSP to Asia
> Saudi Aramco to boost oil loading capacity with reopened terminal
> Noble Energy's loss smaller than expected as oil prices climb
> Syncrude resumes shipments from Mildred Lake oil sands upgrader
> Azerbaijan ships 489,206 tonnes of oil via Russia in Jan-April
> Storage wars: New U.S. potash player K+S faces warehouse squeeze
> Crushing blow to soy processors as Chinese grow wary on GMO
> Australia's largest dairy processor resets Asian growth strategy, shares slump
> Mexico, U.S. agree to extend deadline for sugar trade talks
> USDA says no more delays to rule allowing Argentina lemon imports
> Funds all-time record short across CBOT grains, oilseeds
> Ivory Coast cocoa farmers should raise output, quality -President
> Fertilizer maker Agrium posts smaller-than-expected loss
> Monsanto scraps deal to sell Precision Planting to Deere
> POLL-U.S. corn planting seen 31 pct complete, slowed by rain
> Preview: Canadian canola stocks seen dwindling to 4-year low


===================== ** CORPORATE / EQUITY HEADLINES ** =================

** TOP STORIES ** Asian Companies / Indices **
..........................................................................

> Hi-tech leads Asia shares near 2-year high despite soft China, U.S. data
> North Korea concerns ease a tad after Trump comments

> Australia's ANZ Bank flags slower mortgage lending growth
> Infosys plans to hire 10,000 American workers, open 4 U.S. tech centers
> DBS reports steady Q1 net profit, wealth management outperforms
> Australian government to develop new Sydney international airport
> Australia's largest dairy processor resets Asia growth strategy, shares slump
> Sherritt gives partners bigger stake in nickel mine for debt relief
> 2 consortiums lodge final bids for Australia's Endeavour Energy - sources
> China housing boom drives bulldozer demand - for now
> CVC taps former Sumitomo executive as Japan president
> Freeport Indonesia mine workers hold rally at start of planned strike

from Marc Ostwald
 
Morning folks,

Ftse... 7250 significant rez area...needs to get through it....scalps short.

above 7260...then 7290-7300.... can't get through 7250 ..probably settle around 7220. lets see.

Working well..so far...something had to give way...standby UK PMI..
 
Watching the price action on ftse/cable....fairly obvious markets had wind of the numbers:whistling

cable up ftse down....sp level 7230..looking for a climb back to rez 7250 if cable do not follow through..lets see
 
hmmm...cable can't make its mind up...need another story about PM May euro dinner party....
 
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