At yesterday’s monetary policy meeting in Riga Mario Draghi, head of the European Central Bank, said that monthly purchases of sovereign bonds would be halved from September to €15 billion and phased out at year-end. He also said that the key interest rate would remain at current levels ‘at least through the summer of 2019’. Today, as expected, the Bank of Japan made no changes to its interest rate policy.
In a report out yesterday Boston Consulting Group found that wealth held by the world’s richest millionaires surged by 50 per cent in 2017 as they enjoyed the benefits of an equities and asset bull market. Globally personal financial wealth stood at $200 trillion in 2017, up 12 per cent over the previous year; the UK holds 5 per cent of this with $9 trillion
DAX 30
Bursting back up to May’s high which lies at a Fibonacci 76.4 per cent retracement of this year’s drop from the record high. And again, the commodity channel index is flashing a warning.
SHORT TERM TRADER: Stopped myself out at a small profit.
POSITION TAKER: Stopped out of my short position at a small loss.
FTSE 100
Momentum is still poor despite yesterday’s bounce from first Fibonacci retracement support.
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
A type of spinning top doji just under trend line resistance (though it used to be support); this denotes instability at current levels.
SHORT TERM TRADER: Considering going short this evening depending where we close.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Failed miserably at immediate trend line resistance and now we are oversold again. Very disappointing.
SHORT TERM TRADER: Stopped out with a minuscule profit.
POSITION TAKER: Stopped out with a loss.
EURO/US DOLLAR
Catastrophic failure yesterday at the neckline of the potential V-shaped reversal at 1.1800. Bang goes that idea and we’re now nearly oversold again.
SHORT TERM TRADER: Stopped out for a tiny loss.
POSITION TAKER: Stopped out here too for a small loss.
GOLD
A shooting star candle above the top of the little triangle suggests it was a false break, especially as the pivotal 1310 capped. This idea is backed up by the commodity channel index.
SHORT TERM TRADER: Tiny short at 1294; stop above 1310. Target 1265.
POSITION TAKER: New short at 1298; stop well above 1310. Target 1250.
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.
