Of its 8 regular meetings per annum, September 19th’s were predictably vague. What is perhaps more interesting is the level to which they gauge market opinion. The manager of the System Open Market Account (SOMA) reported on market developments: yields on long term treasury securities dipping a little, the value of the dollar declining, and equity prices increasing. ‘Survey responses suggested that the vast majority of market participants expected the FOMC to announce a change in SOMA reinvestment policy…and that nearly all market participants anticipated that the FOMC would also leave the target range for federal funds unchanged’.
Today is Spanish National Day and a holiday. In La Palma, one of the Canary Islands, there have been 50 tremors this week – mini-earthquakes – known as a seismic swarm. These are being monitored by the islands’ vulcanological institute, looking for potential lava flows from Cumbre Vieja which last erupted in 1971.
DAX 30
Still struggling close to what was June’s high and now record high. Ridiculously tiny daily ranges and horribly overbought. For how much longer can this last? Note this Sunday’s elections in Austria where the far-right Freedom party is showing strongly in opinion polls.
SHORT TERM TRADER: Considering going short if proper bearish candles form.
POSITION TAKER: Square.
FTSE 100
Retreating from this week’s high and marginally less overbought as Brexit deals likely to get postponed until December.
SHORT TERM TRADER: Short at 7507; stop above 7600. Target 7320.
POSITION TAKER: Square.
S&P 500
Super-overbought as some other US indices are not doing as well.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A slightly weaker tone to the US dollar this week with a small rounded bottom in cable and rounded top in USD/JPY.
SHORT TERM TRADER: Small long at 1.3115; stop below 1.3100. Target 1.3400.
POSITION TAKER: Square.
EURO/US DOLLAR
Moving a little faster than expected so that the MACD turned positive on yesterday’s close.
SHORT TERM TRADER: Small long at 1.1770; stop below 1.1700. Target 1.2000.
POSITION TAKER: Square.
GOLD
Once again not going to plan and not holding chart levels.
SHORT TERM TRADER: Rather glad to have been stopped out this morning at a 4 pip loss.
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.
