Dubbed Asia’s Davos, the annual Boao Forum for Asia was addressed by China’s President Xi. Amid the escalating war of words over trade with the United States, he said he planned measures that would further open his economy. This included significant cuts to tariffs on imported autos, reducing those on other goods, enforcing intellectual property rights and encouraging international investment.
The offices and home of Donald Trump’s personal lawyer Michael Cohen were raided yesterday by the FBI; documents were seized. He said the search warrant was issued via a referral from special counsel Robert Mueller. The President called it a ‘total witch hunt’.
DAX 30
Breaking above the 50-day moving average and immediate trend line resistance, retracing a Fibonacci 38 per cent of this year’s fall from a record high. Feeling rather jumpy.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 11800; stop above 12400. Target 9500.
FTSE 100
Back up to where we were two months ago, and what had been the apex of triangle consolidation. Like the Dax, if one assumes that price action since February is consolidation, then the commodity channel index is flashing a bearish warning.
SHORT TERM TRADER: Thinking of selling again.
POSITION TAKER: Square.
S&P 500
Consolidating closer to the bottom of this year’s range, alternating between gains and losses depending on the latest pronouncements by Presidents.
SHORT TERM TRADER: Small short at 2675; stop above 2685. Target 2585.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Momentum has yet to turn bullish despite yesterday’s small uptick.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Picking up a tad as the commodity channel indicator confirms our decision to try going long.
SHORT TERM TRADER: Square.
POSITION TAKER: Small long at 1.2250; stop below 1.2200. Target 1.2450.
GOLD
So very dreary.
SHORT TERM TRADER: Short at 1345; stop well above 1345. Target 1316.
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.