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Market Outlook: £46 billion boom

Board recommends
May 8, 2018

The board of Irish pharmaceuticals firm Shire unanimously recommended shareholders accept the offer on the table from Japanese drug maker Takeda.  This follows an increase in the cash component of the bid and a price 59.6 per cent higher than it was when the firm first expressed an interest.   

Residents of the Leilani Estates neighbourhood in Hawaii were allowed home during daylight hours on Sunday and Monday to retrieve items, pets and check on their homes.  A total of 1700 had been evacuated when seismic activity from Kilauea volcano started Thursday.  Others in the Lanipuna Gardens area were barred from returning home because of deadly volcanic gases.

DAX 30

Having retraced just over 61 per cent of this year’s initial decline the MACD is only today in clearly positive territory; rather odd.  

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

FTSE 100

Struggling a little at the Fibonacci 76.4 per cent retracement; remember that the maximum Fibonacci retracement is 78.6 per cent. 

 

SHORT TERM TRADER:   New tiny short at 7580; stop above 7700.  Target 7100.

 

POSITION TAKER:  Square.

S&P 500

The weekly MACD is clearly bearish following two consecutive hanging men candles.  Yesterday the New York attorney general Eric Schneiderman resigned following allegations of physical abuse by four women in a New Yorker article.

 

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

Very tricky as we have three black crow weekly candles and a break of trend line support hinting that the trend has turned bearish.  On the other hand, the commodity channel index is hinting that it might be time to buy for the first time in well over a year.  

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Small long at 1.3565; stop below 1.3400.  Target 1.4300.

EURO/US DOLLAR

As tricky as cable as the euro gives up 61 per cent of recent gains.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Another stay of execution as it manages to close on Friday above the 1310 level.  Note however that momentum is threatening to turn bearish and that last week we formed a hanging man candle.

                            

SHORT TERM TRADER:  Tiny long at 1307; stop quite a bit below 1300.  Target 1330.

 

POSITION TAKER:  Square.