As is so often the case, late night meetings were held to discuss whether sufficient progress had been made in the British divorce issues. Positive noises are said to have been oozing from EU negotiators as had the answer been ‘non’, it would reflect badly on them. Meanwhile Belgium’s judiciary must decide whether to extradite Catalan President Carles Puigdemont to Spain. Today Spanish courts will decide whether to free on bail 8 of Catalonia’s cabinet so that they can start preparing for an election in the province by year-end.
As the Joseph Rowntree Foundation today publishes data claiming that another 700,000 people in the UK have slipped into relative poverty – mainly children and pensioners – the Coop supermarket starts trials selling some food on the cheap. Dry and tinned goods past their ‘best before’ date will be sold for 10 pence per item. So, that’s how the barely managing are supposed to manage?
DAX 30
Another week spent hovering around the 13000 area and the MACD becomes even less bullish than the paltry levels achieved so far this quarter.
SHORT TERM TRADER: Short at 12960; stop above 13225. First target 12700.
POSITION TAKER: Square.
FTSE 100
A weekly close at the lowest level since mid-September in the middle of the ridiculously tiny range that has dominated all of this year. Too dreary to bother with, I often think.
SHORT TERM TRADER: Short at 7470; stop above 7480. Target 7125.
POSITION TAKER: Square.
S&P 500
A massive dragonfly doji on Friday and a horribly overbought index cannot possibly induce confidence in a serious investor.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Quite a few pundits scratching their heads as to sterling’s sudden popularity. This has been nearly a whole year in the making, such a slow move that the RSI has never been overbought, and now they wake up to the fact.
SHORT TERM TRADER: Long at 1.3425; stop below 1.3340. Target 1.3620.
POSITION TAKER: Long at 1.3325; stop below 1.3340. Target 1.3590.
EURO/US DOLLAR
Holding slightly unsteadily at this year’s higher levels. Hopefully weekly moving averages will continue to support the euro’s rally from what had been horizontal resistance.
SHORT TERM TRADER: Small long at 1.1870; stop below 1.1795. Target 1.2050.
POSITION TAKER: Square.
GOLD
Capped at 1300, then tested Fibonacci retracement support at 1268.5 last week as it looks for direction. Note that momentum is only marginally bearish.
SHORT TERM TRADER: Short at 1281; stop above 1290. 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.
