Yesterday in an interview with CNBC Victor Constancio, vice president of the EU’s central bank, "we see that some markets are overstretched or at least with indicators that are away above the historical averages. Certainly, the cyclically-adjusted price (to) earnings ratio in the U.S. is well-above historical averages. At the same time, we can see that volatility both in the equity and the bond market is very low, which experiences shows in those situations some events may trigger a sudden revision of expectations by investors".
The Trader will be taking a short break so the Daily Outlook will not be published tomorrow, Friday the 1st December. Normal service resumes Monday the 4th. Mind how you go.
DAX 30
Nothing to look at here as we hold between 13200 and 12900, the range we’ve been in for two and a half weeks.
SHORT TERM TRADER: Short at 12960; stop above 13225. First target 12700.
POSITION TAKER: Square.
FTSE 100
Another rejection after the short squeeze above 7440 and now testing Fibonacci retracement support.
SHORT TERM TRADER: Short at 7470; stop above 7480. Target 7125.
POSITION TAKER: Furious about Tuesday’s squeeze higher.
S&P 500
A tiny doji yesterday as prices hover at nose-bleed inducing highs.
SHORT TERM TRADER: Square.
BRITISH POUND/US DOLLAR
Up another neat notch with bullish momentum helping.
SHORT TERM TRADER: Long at 1.3425; stop below 1.3320. Target 1.3620.
POSITION TAKER: Long at 1.3325; stop below 1.3300. Target 1.3590.
EURO/US DOLLAR
What had been trend line resistance become support and formed a little doji candle yesterday suggesting a potential reversal to price action of the previous 3 days.
SHORT TERM TRADER: Small long at 1.1870; stop below 1.1795. Target 1.2050.
POSITION TAKER: Square.
GOLD
Capped again at 1300.
SHORT TERM TRADER: Short at 1281; stop above 1300. Target 1260.
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.
