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Market Outlook: Car sales crash

Diesel blamed

Today the Society of Motor Manufacturers and Traders released data for UK March sales, showing an overall drop of 15.6 per cent from the record high this time last year. Sales of diesel sales dropped by over a third in what is an important month for sales as number plates change.

Credit rating agency Moody’s yesterday cut Barclays plc debt rating by a notch, taking it to Baa3, just one tiny step from a junk rating. The downgrade is due in part to last month’s move changing its legal structure because of the need to comply with ring-fencing rules.     

DAX 30

A rollercoaster of a day as stock markets react to trade-war related pronouncements ahead of US payroll data tomorrow.  A hammer candle yesterday puts the Dax within spitting distance of its descending 50-day moving average.   

 

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

 

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

FTSE 100

Momentum is no longer bearish now we’ve blipped above the 7100 area. 

 

SHORT TERM TRADER:   Stopped out of short position on yesterday’s close above 7100.

 

POSITION TAKER:  Also stopped out of a short position here.

S&P 500

Breaking immediate trend line resistance and retracing a Fibonacci 38 per cent of February’s drop.  The MACD still clearly bearish.

 

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

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

No momentum and nasty dithering so far this week as we wait for US payroll data due tomorrow.

 

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

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Watching the commodity channel index for clues as to whether one should be buying.

 

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

 

POSITION TAKER:  Might go long around 1.2200.

GOLD

Another comprehensive rejection from the 1350 area with a strong shooting star yesterday.

                            

SHORT TERM TRADER:  New short at 1345; stop well above 1350.  Target 1315.

 

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.