Minutes from the US Federal Reserve Open Market Committee meeting January 30-31, the last one chaired by Janet Yellen, showed members’ confidence in the economy had increased since December. CNBC notes: ‘Officials concluded that "upside risks" to economic growth had increased thanks to tax cuts, increased consumer spending and confidence and a general plethora of signs that growth was moving along at a sustained pace. Members said they have revised upward the economic projections they made at the previous meeting in December’. ‘A majority of participants noted that a stronger outlook for economic growth raised the likelihood that further gradual policy firming would be appropriate’.
Tomorrow in Brussels 27 EU leaders will get together for an informal meeting to discuss life after Brexit. On the agenda are details like: how to plug the funding gap; who gets the top jobs; policy on security, defence and migration. Oh, to be a fly on the wall!
DAX 30
Having reached the apex of triangle consolidation the market has made a rather unconvincing (so far) break lower.
SHORT TERM TRADER: Small short at 12535; stop well above 12600. Target 11700.
POSITION TAKER: Short at 12650; stop above 12875. First target 12050, then probably more.
FTSE 100
Breaking below the bottom end of the wedge formation with a shooting star rejection yesterday at 7290.
SHORT TERM TRADER: Small short at 7180; stop well above 7300. Target 7000.
POSITION TAKER: Short at 7250; stop well above 7300. Target the 6675 area.
S&P 500
A clearer rejection from the Fibonacci 61 per cent retracement level.
SHORT TERM TRADER: Short at 2725; stop above 2755. Target 2555.
POSITION TAKER: Short with a stop above 2750. Target 2455 – and maybe a lot more.
BRITISH POUND/US DOLLAR
Slipping down again by a little more than we had allowed for.
SHORT TERM TRADER: Stopped out of long position with no losses.
POSITION TAKER: Stopped out of long position with a tiny loss.
EURO/US DOLLAR
Another currency retreating in line with the US dollar.
SHORT TERM TRADER: New small long at 1.2267; stop below 1.2200. Target 1.2500.
POSITION TAKER: Square.
GOLD
Retreating a bit further from long term trend line resistance; due in part to a stronger dollar.
SHORT TERM TRADER: Kicking myself for not selling earlier.
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.
