A general strike in Catalonia yesterday to protest police heavy handedness on Sunday’s referendum on splitting from Spain saw approximately 700,000 people demonstrating on the streets of Barcelona. In an interview with the BBC pro-independence leader Carles Puigdemont said his administration would ‘act at the end of this week or the beginning of next’. In a rare televised speech, King Felipe labelled the Catalan government irresponsible and had ‘placed themselves outside the law and democracy’ and reminded of the monarchy’s commitment to a united country.
Research by Thomson Reuters published yesterday showed that investment bank fees hit $76.1 billion in the year to September 2017, up 14 per cent from this time last year. This was the highest amount generated in the first nine months of any year in a decade. Top dog was JP Morgan at $5 billion followed by Goldman Sachs with $4.4 billion, Barclays the top European bank in sixth place and $2.6 billion.
DAX 30
Inching to a new record high and terribly overbought. Now let’s see how long it takes Angela Merkel to form a government. Apologies for lack of daily outlook yesterday but upgrade to my lap top played havoc with its functionality.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The strongest mid-range rally in a while though not quite overbought yet. Talk of the Bank of England raising rates in November probably premature, especially after yesterday’s Construction PMI which came in at 48.1, its first contraction since February 2016.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Clearly overbought as we creep relentlessly higher for no good reason.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Giving back four cents and half September’s gains. Note that the commodity channel index is now suggesting that a buy is imminent.
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
Yesterday’s doji hints that the euro might be trying to base against the 1.1700 area, support which somehow managed to hold in the first half of August and is at the Fibonacci 38 per cent retracement level.
SHORT TERM TRADER: Short at 1.1750; stop above 1.1875; target 1.1600 but may have to adjust if support at 1.1700 continues to hold.
POSITION TAKER: Square.
GOLD
Momentum is clearly bearish as we drift back down to where we were late August.
SHORT TERM TRADER: Short at 1291; stop above 1300; target 1245.
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.
