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Market Outlook: Ford lures buyers

Worth up to £2000
August 22, 2017

Car maker Ford will, for the next four months only, offer to buy back any – diesel or petrol – of its cars built pre-2010 if the owner chooses one if its new models.  Because all of the old vehicles will be scrapped this will have an ‘immediate positive effect on air quality’.  Over in the US average used car prices have dropped 17 per cent over the last 12 months and 25 per cent of owners are already on average $3635 underwater.  The rate of depreciation has increased from 9.5 per cent in 2014.

Alan Howard, founder of perhaps what used to be Britain’s most successful hedge fund Brevan Howard, he is returning to live in the UK having decamped to Geneva in 2010 like so many others of his tribe for tax reasons.  Citing personal reasons for the latest move, it coincides with both Deutsche Bank and Julius Baer announcing plans to grow their wealth management operations in London.

DAX 30

Still consolidating neatly below horizontal resistance at 12345 and above first Fibonacci retracement support at 11955.  Note how the 50-day moving average hugs trend line resistance and not that we are trading either side of the 200-day moving average. 

 

SHORT TERM TRADER:  Small short at 12225; stop above 12355.  Target 11550.

 

POSITION TAKER:  Short at 12175; stop above 12355.  Target 11500.

FTSE 100

Still consolidating above horizontal support at 7300 but note that by going nowhere fast since early May 50 and 200-day moving averages are perilously close to crossing. 

 

SHORT TERM TRADER:   Square but will sell on a daily close below 7300.

 

POSITION TAKER:  Short at 7300; stop above 7460.  Target roughly 7000.

S&P 500

The MACD still clearly bearish despite yesterday’s bounce to form a hammer candle.  This suggests we may well hold above 2400, even 2420, for the rest of this week. 

 

SHORT TERM TRADER:  Short at 2468; stop above 2475.  Next target is pivotal support at 2400.

 

POSITION TAKER:  Will sell on a weekly close below 2400.

 

BRITISH POUND/US DOLLAR

Crushingly boring as we continue to hold against Fibonacci 61 per cent retracement support.  However, this has allowed the commodity channel index to turn positive as at yesterday’s close.

 

SHORT TERM TRADER:  Small long at 1.2885; stop below 1.2800.  Target 1.3100, maybe 1.3270/1.3300.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Momentum inching into bullish territory ahead of Jackson Hole and as President Trump digs in deeper in Afghanistan.

 

SHORT TERM TRADER:  Small long at 1.1745; stop below 1.1600.  First target 1.1890 but in truth looking for a burst to a new high for this year.

 

POSITION TAKER:  Square.

GOLD

Yesterday US Treasury Secretary Steven Mnuchin visited Fort Knox, the first one to do so in 70 years, and said, ‘I assume the gold is still there.  It would really be quite a movie if we walked in and there was no gold’.

                            

SHORT TERM TRADER:  Square.

 

POSITION TAKER:   Square.

Nicole Elliott is a long standing Member of the Society of Technical Analysts and has taken over 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.