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Market Outlook: CNBC contributor picked by Trump

As replacement economic advisor

Needless to say, the US business television channel yesterday eagerly arranged an interview with Larry Kudlow, President Trump’s chosen replacement to Gary Cohn as chief economic advisor.  The economist is a regular contributor tom CNBC and surprised yesterday, in his new role, by saying, ‘I would buy King Dollar and I would sell gold’, adding that the Fed should not ‘overdo’ rate rises and that ‘growth is not inflationary.  Just let it rip, for heaven’s sake’.   

Yesterday research from the Economist Intelligence Unit claimed that Singapore is still the world’s most expensive city for international tourists.  Paris and Zurich tie in second place, Hong Kong not far behind, then Oslo, Geneva and Seoul tied in sixth place followed by Copenhagen and Tel Aviv.  London sunk to 30th position, its cheapest in 20 years, on sterling weakness.  Locals have not benefited, instead having to cope with inflation and stagnant wages.

DAX 30

Certainly not oversold as we consolidate in an irregular triangle for the best part of a month. 

 

SHORT TERM TRADER:  Small short at 12425; stop above 12655.  Target 12000.

 

POSITION TAKER:  Looking to re-sell on a weekly close below 12000.

FTSE 100

Yesterday’s unusual little shooting star candle at the bottom of triangle consolidation has not added any more bearish downside pressure – all of which is a bit odd.  Tread carefully.

 

SHORT TERM TRADER:   Looking to re-sell on a close below the bottom of the triangle.

 

POSITION TAKER:  Short at 7250; stop above 7300.  Target the 6675 area.

S&P 500

Turning down from the Fibonacci 76.4 per cent retracement level confirming the drop in the commodity channel index.

 

SHORT TERM TRADER:  Small short at 2760; stop above 2880.  Target 2620.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Talk about baby steps!  Yesterday’s little doji above the top of triangle consolidation and a positive MACD are bullish.  Let’s see if cable can pick up the pace.

 

SHORT TERM TRADER:  Small long at 1.3835; stop below 1.3780.  Target 1.4100.

 

POSITION TAKER:  Small long at 1.3775; stop below 1.3780.  Target 1.4250.

EURO/US DOLLAR

Not really gaining traction as we hover at the centre of consolidation in a symmetrical triangle.  Probably because it’s just too close to the highest level in over 3 years.

 

SHORT TERM TRADER:  Small long at 1.2267; stop below 1.2250.  Target 1.2500.

 

POSITION TAKER:  Small long at 1.2270; stop below 1.2250.  Target 1.2500.

GOLD

When the President’s right hand man tells you what trades to place, should you listen?

                            

SHORT TERM TRADER:  Will sell on a close clearly below the triangle’s trend line tonight.

 

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.