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Market Outlook: Metal tariff delayed

By one month
May 1, 2018

President Trump yesterday agreed to delay the introduction of tariffs on imported aluminium and steel from today until the 1st June.  This applies to Canada, the EU and Mexico – at the moment; this allows them to continue discussing the issue with Washington.  Argentina, Australia and Brazil already have an ‘agreement in principle’ which must be ratified within 30 days.

On Sunday Philippines President Rodrigo Duterte made permanent what had been a temporary ban on his citizen’s going to work in Kuwait, CNBC reports.  His nation relies on the remittances sent by the 262,000 Filipinos who live in the Gulf state.  The ban is being imposed because of hundreds of cases of sexual abuse, suicide and disappearance of domestic workers, cases of abuse and murder; 190 have died since 2016.  He added, ‘I would like to address their patriotism: come home.  No matter how poor we are, we will survive.  The economy is doing good’.

DAX 30

Stopped at the 50 per cent retracement level and the commodity channel index is clearly bearish.  

 

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

 

POSITION TAKER:  Short at 12400; stop well above 12650.  First target 11800.

FTSE 100

Overbought as we hover just under the maximum Fibonacci retracement levels allowable. 

 

SHORT TERM TRADER:   Square.

 

POSITION TAKER:  Square.

S&P 500

Retreating fractionally yesterday so that momentum has just turned negative.

 

SHORT TERM TRADER:  Small short at 2689; stop above 2725.  Target 2580.

 

POSITION TAKER:   Short at 2673; stop above 2725.  First target 2560.

BRITISH POUND/US DOLLAR

Oversold with a small hammer candle yesterday ahead of long term trend line support and at the level we based on the 1st March.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  New long at 1.3750; stop well below 1.3675.  Target 1.4300.

EURO/US DOLLAR

It looks and feels like a steep drop but that’s due in part to this year’s ridiculously narrow range.  Oversold already.

 

SHORT TERM TRADER:  Watching to a level at which to buy the euro.

 

POSITION TAKER:  Square.

GOLD

Now it’s time to see if long term support around 1310 holds.  Worryingly today Bloomberg reports that Egyptian billionaire Naguib Sawiris has put half his net worth into gold, citing the usual reasons and targeting the 1800 level.

                            

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.