Join our community of smart investors

Market Outlook: A ‘very comprehensive document’

Signed by Kim and Trump
June 12, 2018

Details to follow.  Whatever it might contain, today’s meeting is seen as a diplomatic coup and one which some feel legitimises the Kim dictatorship in North Korea.  What we do know is who was at the working lunch and what they ate.  US Secretary of State Pompeo, White House Chief of Staff Kelly and National Security Advisor Bolton.  From the North Korean delegation was the Vice Chairman of the Central Committee Kim Yong Chol, minister of foreign affairs Ri Yong Ho, and minister of the People’s Armed Forces No Kwang Chol.  They ate prawn cocktail, avocado salad, and octopus to start.  Main course was either short rib, sweet and sour pork, or cod.  Chocolate tart and vanilla ice cream for pudding.

Tweeting ahead of Tuesday’s meeting President Trump lashed back at the leaders at the recent G7 summit saying ‘fair trade is now to be called fool trade if it is not reciprocal.  Sorry, we cannot let our friends, or enemies, take advantage of our trade anymore.  We must put the American worker first!’

DAX 30

Momentum is mixed at best, which is as one would expect in another consolidation phase.

 

SHORT TERM TRADER:  Tiny short at 13145; stop above 13050.  Target 12400.

 

POSITION TAKER:  Short at 12935; stop above 13050.  Target 12000.

FTSE 100

Momentum’s in a muddle as we creep sideways in the tiniest of ranges.

 

SHORT TERM TRADER:   Tiny short at 7855; stop well above 7800.  Target 7400.

 

POSITION TAKER:  Small short at 7799; stop well above 7900.  First target 7400.

S&P 500

Almost overbought again as prices retrace nearly 76.4 per cent of the slump early this year.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:   Square.

BRITISH POUND/US DOLLAR

Consolidating under first Fibonacci retracement resistance as the long hard slog to recover some of this Spring’s losses gets going very slowly.

 

SHORT TERM TRADER:  Tiny long at 1.3275; stop below 1.3300.  Target 1.3800.

 

POSITION TAKER:  Small long on at 1.3350; stop below 1.3275.  Target 1.4200.

EURO/US DOLLAR

Bullish momentum’s picked up this week but we still need a close above 1.1800 to complete a V-shaped reversal.

 

SHORT TERM TRADER:  Small long at 1.1685; stop below 1.1700.  Target 1.2000.

 

POSITION TAKER:  Long at 1.1660; stop below 1.1600.  Target 1.2400.

GOLD

While holding neatly inside the symmetrical triangle we had pencilled in this market has no drive, longer term thrust or momentum.    

                            

SHORT TERM TRADER:  Tiny short at 1294; stop above 1310.  Target 1265.

 

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.