In fact, the question was posed yesterday by a girl to her pal as they were on their way to visit boyfriends at Wansdworth prison. A little later, online supermarket Ocado - which now wants people to think of it as a logistics and technology company – announced a landmark tie-up with US grocer Kroger. On the news, the share price rallied by 81 per cent, to end up 43 per cent on the day. The rally was exceptionally large because the company has, for years, been a favourite for hedge funds to sell short.
Japan’s preferred measure of inflation – CPI excluding fresh food - came in today as rising 0.7 per cent in the year to April, from a 0.9 per cent increase in March. If one also excludes energy prices it rose at a mere 0.4 per cent. This is the sort of level that has prevailed for the last three years and is a fraction of the central bank’s 2 per cent target.
DAX 30
The Dax has today retraced a Fibonacci 76.4 per cent of this year’s decline. It is also more overbought than it’s been in months.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
The cash FTSE 100 set a new record high yesterday at 7787.97 and closing at 7768.95; IG prices vary somewhat, reminding traders and investors that they are not actually dealing in the real market.
SHORT TERM TRADER: Small short at 7715; stop above 7800. First target 7400.
POSITION TAKER: Short at 7700; stop well above 7800. Target 7000.
S&P 500
Meaningless meandering under the old trend line. CNBC yesterday reminded its viewers of an interview Warren Buffet gave them some time ago where he said: ‘’the most important item in valuation [of shares] is obviously interest rates. The bogey is always what government bonds yield.’’
SHORT TERM TRADER: Short at 2725; stop above 2755. Target 2625.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Laborious labour of love at the Fibonacci 38 per cent retracement support level.
SHORT TERM TRADER: Long at 1.3545; stop below 1.3400. Target 1.4100.
POSITION TAKER: Small long at 1.3565; stop below 1.3400. Target 1.4300.
EURO/US DOLLAR
Stumbling a bit, and terribly oversold, as it tries to regain its footing.
SHORT TERM TRADER: Square.
POSITION TAKER: A rather expensive loss as I’m stopped out of my long position.
GOLD
Momentum is bearish. Planning to go short at today’s close if it’s clearly below 1300 as this completes the complex topping pattern that has been building all this year.
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.
