Join our community of smart investors
OPINION

Engine of growth

Engine of growth
May 16, 2017
Engine of growth

DAX 30

Still overbought with a dragonfly doji yesterday denoting instability.

SHORT TERM TRADER: Square.

POSITION TAKER: Square.

FTSE 100

Front page news in extra-large font in City AM this morning: ‘Oil lifts the FTSE to new record high’ – of 7460 intraday and settling at 7454 as opposed to 7435 at the end of last week. Rather worrying to be reminded that BP and Royal Dutch Shell account for 13 per cent of this index of top 100 shares.

SHORT TERM TRADER: Square.

POSITION TAKER: Square.

S&P 500

As US giant asset manager Vanguard launches an online service in the UK today it will be interesting to see how much they manage to pull into American equities.

SHORT TERM TRADER: Square.

POSITION TAKER: Small short at 2335; stop above 2406. Target 2150.

BRITISH POUND/US DOLLAR

No longer overbought and holding rather better than expected just under the psychological 1.3000 level – much to the surprise of many pundits and international investors.

SHORT TERM TRADER: Long at 1.2785; stop below 1.2800. Target 1.3200.

POSITION TAKER: Long at 1.2950; stop below 1.2750. Target 1.3400.

EURO/US DOLLAR

It looks as though the gap at 1.0800 is not going to be filled and because bullish momentum has increased we are seeing a generalised bout of US dollar selling. The yen hasn’t joined in the fun courtesy of the Japanese authorities who continue to struggle with economic policy.

SHORT TERM TRADER: Rather relieved to have eventually been stopped out of my little short position.

POSITION TAKER: Square.

GOLD

Consolidating above trend line support yet momentum is still clearly bearish.

SHORT TERM TRADER: Cut out of my short position at a profit on yesterday’s squeeze higher.

POSITION TAKER: Short at 1230; stop above 1250. Target 1155.

MORE FROM NICOLE ELLIOTT...

Nicole Elliott is a longstanding Member of the Society of Technical Analysts and provides the IC's trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker and author of several books on charting.

Sign up to The Trader's market outlook emails.

Read more of the Trader's articles.