Market Outlook: London house prices fall

Another survey by UBS Wealth Management assessing ‘bubble risk’ gave London a score of 1.77 even though the luxury end faces oversupply.  Adjusted for inflation this means that the capital’s house prices are 45 per cent higher than they were 5 years ago, 15 per cent higher than before the financial crisis.  Top of the list was Toronto at 2.12, followed by Stockholm (2.01), Munich (1.92) and Amsterdam (1.59) while Paris, Frankfurt and Geneva were overvalued but not in bubble territory.  Chicago was bottom at 0.66 meaning its housing stock was undervalued.  Others that are in bubble territory include Vancouver and Sydney at 1.80, Hong Kong (1.74) but certainly not Singapore (0.32) and New York (0.20).

DAX 30

Inching even higher and dragging the commodity channel index back above the 100 line.

SHORT TERM TRADER:  Stopped out of my short position at a small loss.

POSITION TAKER:  Square.

FTSE 100

Inching higher while holding within the inverted flag pattern but putting the MACD into positive territory.

SHORT TERM TRADER:   Stopped out of my short position this morning at a loss.

POSITION TAKER:  Short at 7300; stop above 7375.  Target roughly 7000.

S&P 500

Consolidating quite happily close to a record high yet bullish momentum is very weak.

SHORT TERM TRADER:  Square.

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Trying to hold above 1.3300 and Fibonacci 38 per cent retracement at 1.3320.

SHORT TERM TRADER:  Square and looking to re-buy.

POSITION TAKER:  Long at 1.3195; stop below 1.3215.  Target about 1.4000.

EURO/US DOLLAR

Like cable the euro has retraced a Fibonacci 38 per cent of the rally that started in July.  However, the MACD remains very bearish.   

SHORT TERM TRADER:  Short at 1.1750; stop above 1.1910; target 1.1600.

POSITION TAKER:  Square.

GOLD

Marking time at this month’s lowest levels with silver and platinum also suffering three consecutive weekly declines.

SHORT TERM TRADER:  Short at 1291; stop above 1320; target 1240.

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.