Join our community of smart investors

Market Outlook: BRC shop price slump

Swiftest decline in a year
April 4, 2018

Data out this morning from the British Retail Consortium show that in March prices in UK shops fell by 1 per cent, mainly due to previous weakness of the pound falling out of the equation.  This is the fastest rate of deflation since February 2017 and comes hot on the heels of an 0.8 per cent drop in February this year.

In a pathetic attempt at burying bad news a veritable flurry of UK firms filed their gender pay gaps yesterday and dozens more are due to do so today, the final day.  Well known High Street brands reported no gap at all, 78 per cent said men were paid more than women, firms with over 5000 employees having the biggest income disparity.  When it comes to bonuses, the yawning unfairness is even bigger, with Hull and East Yorkshire NHS Trust admitting to a 99.4 per cent bias against women.  Writing in today’s Daily Telegraph PM May said it’s vital this ‘burning injustice’ is tackled.     

DAX 30

Still hovering at the pivotal 12000 area in what is probably an right-angled triangle and momentum is decidedly bearish.   

 

SHORT TERM TRADER:  Short at 11800; stop above 12200.  Target 11400.

 

POSITION TAKER:  Short at 11800; stop above 12400.  Target 9500.

FTSE 100

Bearish momentum has all but evaporated as we hover just under the pivotal 7100 area.  However, we still have a clear series of descending highs so far this year.

 

SHORT TERM TRADER:   Small short at 7055; stop above 7100; target 6700.

 

POSITION TAKER:  Short at 6850 and at higher levels; stop above 7100.  Target the 6675/6700 area.

S&P 500

Marking time ahead of Friday’s US labour statistics.

 

SHORT TERM TRADER:  Small short at 2675; stop above 2685.  Target 2585.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Pathetic little candles recently mean zero momentum.

 

SHORT TERM TRADER:  Long at 1.4075; stop well below 1.4000.  Target 1.4275.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Watching to see whether trend line support (taken from last year’s low) will hold.

 

SHORT TERM TRADER:  Looking to buy between trend line support at 1.2200.

 

POSITION TAKER:  Might go long around 1.2200.

GOLD

Might try and re-sell close to 1350 in order to try and pick up some pennies in this year’s very tight range.

                            

SHORT TERM TRADER:  Square.

 

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.