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Market Outlook: Queen kicks off Commonwealth summit

Glorious weather at Buckingham Palace
April 19, 2018

For the first time since 1997 heads of state of Commonwealth countries will meet in the UK for the Commonwealth Heads of Government meeting (CHOGM) – which just might also be Queen Elizabeth II’s last one because she has cut much foreign travel.  This year’s theme: Towards our common future.

Chinese state media today say that naval exercises in the Straits of Taiwan have assembled many warships and is ‘the largest of its kind in 600 years’.  They reported that the move was as a response to ‘provocations’ from Taiwan.

DAX 30

Suddenly stopped at the 50 per cent retracement level.  

 

SHORT TERM TRADER:  Small short at 12430; stop above 12650.  Target 12000.

 

POSITION TAKER:  Square.

FTSE 100

Back up just above the 7300 level. 

 

SHORT TERM TRADER:   Short at 7255; stop well above 7320.  Target 7000.

 

POSITION TAKER:  Square.

S&P 500

Back at this year’s half-way point.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:   Square.

BRITISH POUND/US DOLLAR

Pausing for a breather as many get to grips with the fact they have been so very wrong in their outlook for this pair since the referendum.

 

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

Totally ignoring the posturing and vision for the EU that Macron and Merkel are bickering over.  Be very careful when trading ranges get this small because the tendency is to increase position size in order to make the sort of money one has in mind.  Secondly, one begins to lose a sense of perspective as to what is a big or significant move.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Pushing up towards long term resistance.

                            

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.