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Market Outlook: UK retail sales slump

Worst since 2008
November 7, 2017

Data overnight from the British Retail Consortium showed that last month retail sales fell at their fastest rate since October 2008. Like-for-like overall sales fell by 1 per cent, versus increasing by 1.7 per cent this time last year. Food sales climbed by 2.4 per cent, non-food collapsing by 2.9 per cent ringing alarm bells for sales this Christmas. Separate data from Barclaycard showed that spending grew by less than inflation (2.4 per cent), which is currently running at 3 per cent.

The Society of Motor Manufacturers and Traders said UK car sales in October fell for a seventh consecutive month to 158,192 vehicles, a 12.2 per cent drop from the previous month. Unsurprisingly diesel sales tumbled by one third and business buyers shrank by one quarter.

DAX 30

It appears that absolutely nothing can deflect from the Dax’s relentless march into overbought territory, not even yesterday’s announcement by Siemens Gamesa that it will lay off 6000 of its 27000 workforce in order ‘to consolidate its position as a market leader’.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

FTSE 100

Probing a new record high.

 

SHORT TERM TRADER:   Stopped out of my short position on this morning’s squeeze to 7590.

 

POSITION TAKER:  Square.

S&P 500

No amount of creative ways to minimize tax can stop this index from inching to a new record high.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Bouncing from the bottom of the range of the last month or so giving momentum a chance to turn bullish.

 

SHORT TERM TRADER:  New long at 1.3155; stop below 1.3025.  Target 1.3300.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Retesting the pivotal level around 1.1600 and daily momentum is clearly bearish.  

 

SHORT TERM TRADER:  Short at 1.1610; stop above 1.1700.  Target 1.1200.

 

POSITION TAKER:  Square.

GOLD

Momentum is no longer bearish as we trade sideways for a second week. 

                            

SHORT TERM TRADER:  Small short at 1275; stop above 1285.  Target 1220.

 

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.