Market Outlook: Apple’s largesse

The British National Audit Office says the nation will owe £199 billion over the next decades in private finance initiatives – that have no clear benefit.  This because in theory the government can finance itself more cheaply than any commercial borrower.   

DAX 30

Bullish momentum crumbling quickly as we hover around 13200. 

SHORT TERM TRADER:  Short at 13290; stop above 13550.  Target 12900.

POSITION TAKER:  Square.

FTSE 100

Holding above the psychological 7700 but momentum is now barely bullish.

SHORT TERM TRADER:   Square.

POSITION TAKER:  Long at 7681; stop below 7645.  Target 8000.

S&P 500

Settling at a new record high yesterday thus keeping the RSI spectacularly overbought – as it has been all month.

SHORT TERM TRADER:  Square but thinking of selling.

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

That enormous intra-day spike high in IG’s prices really did happen and shows what happens when the desperate are forced to cut positions.

SHORT TERM TRADER:  Looking to re-buy.

POSITION TAKER:  Long at 1.3730; stop well below 1.3600.  First target 1.4000, then probably 1.4600.

EURO/US DOLLAR

Almost a bearish engulfing candle yesterday as those backing the euro might be having second thoughts at these multi-year highs.

SHORT TERM TRADER:  Long at 1.2150; stop below 1.2040.  Target 1.2575.

POSITION TAKER:  Long at 1.2200; stop below 1.1900.  First target 1.2600, then maybe 1.3000.

GOLD

Like the euro, here is another instrument which saw a variation on a bearish engulfing candle yesterday.  The commodity channel index is yet to turn down decisively though.

SHORT TERM TRADER:  Square.

POSITION TAKER:  Short at 1317; stop above 1360.

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.