At yesterday’s first House financial services committee testimony, the new head of the Federal Reserve Jerome (Jay) Powell sounded an upbeat note. ‘My personal outlook for the economy has strengthened since December. In gauging the appropriate path for monetary policy over the next few years, the FOMC will continue to strike a balance between avoiding an overheated economy and bringing PCE price inflation to 2 per cent on a sustained basis’.
Data from China this morning show that February’s manufacturing Purchasing Managers’ index dropped to 50.3 from 51.3 in January. This is the lowest reading in 19 months. Statistics bureau official Zhao Qinghe blamed it on the Lunar New Year falling mid-month this year, CNBC reports.
DAX 30
The commodity channel index has turned down as prices break immediate trend line support. They’ll probably make a bee-line for the more important trend line taken from early 2016.
SHORT TERM TRADER: Small short at 12535; stop well above 12600. Target 11700.
POSITION TAKER: Short at 12650; stop above 12655. First target 12050, then probably more.
FTSE 100
The commodity channel index has turned bearish with the small dip below immediate trend line support.
SHORT TERM TRADER: Small short at 7180; stop above 7325. Target 7000.
POSITION TAKER: Short at 7250; stop above 7325. Target the 6675 area.
S&P 500
Rather inconclusive with a not-quite bearish engulfing candle yesterday under the Fibonacci 76.4 per cent retracement resistance level.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Momentum might turn bearish today as prices grapple with the bottom of triangle consolidation.
SHORT TERM TRADER: Long at 1.3975; stop below 1.3800. Target 1.4275.
POSITION TAKER: Square.
EURO/US DOLLAR
Another currency where momentum might turn bearish as prices hover on medium term support. Perhaps it’s time for a brief clear-out.
SHORT TERM TRADER: Small long at 1.2267; stop well below 1.2200. Target 1.2500.
POSITION TAKER: Square.
GOLD
Like the currencies above, poised on medium term support with momentum likely to turn bearish.
SHORT TERM TRADER: Might consider selling on a close below immediate support.
POSITION TAKER: Square.
