Financial regulators across the European Union today introduced new rules covering the Markets in Financial Instruments Directive – version two. Running to over 1.7m paragraphs it has already cost asset managers and banks $2.1bn, according to Boston Consulting and HIS Markit. It includes such basic things as time stamping orders and recording voice over telephone instructions and deals. German regulator BaFin late last night has granted Deutsche Börse another 30 months to enforce new rules as to where futures contracts are traded and cleared, the Financial Times reports.
In a survey of 10,000 people around the world BDO found that the US continues to the most favoured nation for those wanting to emigrate with 30 per cent of the vote. Canada has overtaken the UK in second place which dropped to third and 19 per cent of votes.
DAX 30
Starting the year with a small dose of the jitters as the index tries to hold horizontal support around 12900. Daily and weekly closes below here would complete a gentle saucer-shaped top.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 12920; stop above 13200. Target 12400.
FTSE 100
Not nearly as composed as we’d hoped testing both the upside and first, and pivotal support at 7600, in just one day. Momentum remains bullish though.
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 7681; stop below 7580. Target 8000.
S&P 500
Nearly overbought as has been the case for the last three months or so.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
One of the strongest daily closes in over a year despite bullish momentum not being all it might be. Keep an eye on the dollar index as a weekly close well below 92.00 should trigger the next wave of generalised US dollar selling.
SHORT TERM TRADER: Long at 1.3540; stop below 1.3470. First target 1.3800.
POSITION TAKER: Square.
EURO/US DOLLAR
The three consecutive strong bullish candles at the end of December are a candlestick formation known as three white soldiers. This suggests that bullish momentum should continue this week and possibly all this month.
SHORT TERM TRADER: Small long at 1.2035; stop below 1.1935. Target 1.2185.
POSITION TAKER: Square.
GOLD
Very overbought after goodness only knows how many consecutive bullish days since mid-December.
SHORT TERM TRADER: New short at 1314; stop above 1335. Target 1270.
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.
