Data released in Japan overnight showed that Q3 GDP grew by 0.3 per cent Q/Q taking the annualised rate to 1.4 per cent from an upwardly revised 2.6 per cent in Q2; the deflator on these numbers came in at 0.1 per cent from a negative 0.4 per cent in the previous quarter. Capacity utilisation and industrial production both dipped in September. These figures may look decidedly pedestrian to many eyes but this is the longest expansion the nation has seen since 2001.
Media reports of a military coup in Zimbabwe overnight. Gunshot and explosions were heard around the capital Harare and once the state television was overrun a general broadcast an announcement saying President Mugabe was in a safe place. It appears to be a revolt against factions associated with his second wife Grace who many believe was trying to succeed her husband.
DAX 30
The longer we hold below 13200 the more the move above that will look like a false break and potential spike high.
SHORT TERM TRADER: New short at 12960; stop above 13225. First target 12700.
POSITION TAKER: Will sell depending on what type of candle and where we end up this week.
FTSE 100
Bearish momentum turns increasing a little with yesterday’s small slither.
SHORT TERM TRADER: Short at 7470; stop above 7540. Target 7125.
POSITION TAKER: Square.
S&P 500
Looks like this index is forming a small rounded top, as is dollar/yen. Increasingly bearish MACD may accelerate downside pressure.
SHORT TERM TRADER: New small short at 2565; stop above 2615. First target 2515 and more realistically 2460.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Once again lifting itself off the lower boundary of recent consolidation which happens to coincide with long term trend line support.
SHORT TERM TRADER: Long at 1.3155; stop below 1.3025. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
All change, all change! As we had warned yesterday a sustained break or close above the 1.1700 area means that October’s drop below here was a false break.
SHORT TERM TRADER: Stopped out of my short position at a loss.
POSITION TAKER: Square.
GOLD
Rallying a tad but not enough to make up for yesterday’s dollar weakness.
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.
