DAX 30
An inside day yesterday but with some elements of a spike high or tweezers top, and the MACD is still very mixed.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
On the nasty side of things with a bearish engulfing candle yesterday with a spike high at its upper end and momentum not exactly bearish any more.
SHORT TERM TRADER: Small short at 7542; stop above 7600. Target 7300, maybe 7200.
POSITION TAKER: Square.
S&P 500
A tweezers top yesterday unravelling Monday’s rally taking the market off its overbought reading. Back inside the 2420-2440 range that had dominated so far this month so not really very convincing one way or another.
SHORT TERM TRADER: Tempted to try a tiny short.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The effects of a weaker pound can clearly be seen in Mercer’s 2017 survey of the cost of living in 209 international cities. London fell from 17th most expensive to 30th (Luanda, Hong Kong, Tokyo, Zurich and Singapore are the top 5), and Aberdeen sunk an astounding 61 places to 146th.
SHORT TERM TRADER: Still short at 1.2690; stop above 1.2825. Target 1.2400.
POSITION TAKER: Square.
EURO/US DOLLAR
Pressure on the clearing houses heating up with the ECB stressing the systemic importance of euro denominated supervision in the local area and the Bank of England pointing out that ‘fragmentation is in no one’s economic interest’.
SHORT TERM TRADER: Small short at 1.1185; stop above 1.1300. Target 1.0900.
POSITION TAKER: Square.
GOLD
Pausing as crude oil hogs the limelight at this year’s lows.
SHORT TERM TRADER: Small short at 1271; stop above 1255. Target 1220-1230.
POSITION TAKER: Small short at 1262; stop above 1270. Target 1200.
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.
