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Market Outlook: Car sales drop

Across the EU
October 17, 2017

Data released this morning by the Brussels-based Association of European Carmakers saw September new car registrations drop by 2 per cent to 1.466 million vehicles.  Leading the pack was French-based PSA with a 5 per cent fall while Ford sales fell 13 per cent in the European Union and European Free Trade Area.  Unrelated but worth mentioning is that Daimler Benz will recall 1 million Mercedes cars because of faulty airbags.

London home prices are on the slide, though commercial property remains resilient.  Sales of central London apartments fell 47 per cent in the year to July and their prices have dropped by 2.7 per cent in the year to September.  Prime London properties, which peaked in 2014, are off 15 per cent based on data from Savills.

DAX 30

Holding close to the new record high and stupidly overbought on the RSI.  Not surprisingly Spain’s Ibex index has not been doing nearly as well.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

FTSE 100

Possibly beginning to roll over again at the 7555 area.

 

SHORT TERM TRADER:   Short at 7554; stop above 7600.  Target 7320.

 

POSITION TAKER:  Square.

S&P 500

Overbought and a dragonfly doji yesterday does not inspire confidence as the 30th anniversary of Black Monday looms.  Note that Mrs Yellen will meet Donald trump on Thursday to discuss who should head up the FOMC once her term expires.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Holding up relatively well considering Mrs May’s pointless trip to Brussels yesterday.

 

SHORT TERM TRADER:  Small long at 1.3115; stop below 1.3100.  Target 1.3400.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Sagging a little as bullish momentum fails to pick up.   

 

SHORT TERM TRADER:  Small long at 1.1770; stop below 1.1740.  Target 1.2000.

 

POSITION TAKER:  Square.

GOLD

Gold is expensive relative to other metals (except palladium) and this chart is especially trying.

                            

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.