Yesterday the Washington Post announced that CIA director Mike Pompeo met face-to-face with North Korean leader Kim Jong Un over the Easter weekend. Mr Pompeo, recently nominated to replace Rex Tillerson as US secretary of state, was thought to be laying the groundwork for President Trump’s meeting to discuss the de-nuclearization of the Korean peninsula. Separately, next week North and South Korea hold a summit meeting to try and thrash out a peace deal. Technically the countries have been at war since the 1950-1953 Korean War – which ended in a truce.
Today a team from the Organisation for the Prohibition of Chemical Weapons will be allowed to enter the Syrian city of Douma where an alleged chemical attack took place, in turn leading to combined UK, US and French air strikes on the country.
DAX 30
Pushing at the 50 per cent retracement level and the commodity channel index has yet to turn down decisively.
SHORT TERM TRADER: Small short at 12430; stop above 12650. Target 12000.
POSITION TAKER: Square.
FTSE 100
The commodity channel index has definitely turned down following the rejection at the 7300 level.
SHORT TERM TRADER: Short at 7255; stop well above 7320. Target 7000.
POSITION TAKER: Square.
S&P 500
The index is now back at the half-way point between this year’s high and low – under the previous reaction highs – and the commodity channel index is flashing a warning.
SHORT TERM TRADER: Stopped out for a minuscule loss.
POSITION TAKER: Also stopped out of this short.
BRITISH POUND/US DOLLAR
Stalling at 1.4375, the highest post-referendum for cable, as the media try to make out everything’s coming up roses in Britain. Today the next round of EU negotiations start.
SHORT TERM TRADER: Long at 1.4335; stop below 1.4150. Target 1.5000.
POSITION TAKER: Long at 1.4220; stop below 1.4135. Target 1.4450.
EURO/US DOLLAR
Dithering in a doji yesterday, at the centre of a tiny range. Not a lot for a trader to do.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Dragonfly doji yesterday as the market looks for direction.
SHORT TERM TRADER: Small short at 1342; stop above 1360. Target 1320.
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.
