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Market Outlook: Google given 90 days

EU versus Silicon Valley
July 19, 2018

Margarethe Vestager, the EU’s antitrust commissioner, slapped its biggest ever fine - €4.3 billion – on Google for ‘serious illegal behaviour’.  The company has 90 days within which to end its anti-competitive practices (centred on the bundling of its Android smartphone software) or face daily fines of 5 per cent on all parent Alphabet’s worldwide revenue.

Swimming against the tide, The Publisher’s Association yesterday reported that sales of physical books rose for a third year running.  All income from publishing, including digital, film and TV rights was worth £5.7 billion in 2017, of which £3.4 billion was exports.  Hardback fiction rose the most, 31 per cent, unit sales increasing as was the value of each book.

DAX 30

Through a resistance level and then just stops.  Note though that the commodity channel index is at overbought levels and still might turn down this week.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

FTSE 100

Stuck at the top of the recent trend channel with precious little bullish momentum. 

 

SHORT TERM TRADER:   Short at a couple of levels; stop above well 7710.  Target 7400.

 

POSITION TAKER:  Small short at 7799; stop well above 7800.  First target 7400, then 7100.

S&P 500

The tiniest dragonfly doji candles yesterday and the commodity channel index threatening to turn down.

 

SHORT TERM TRADER:  Tiny short at 2787; stop above 2880.  Target 2590.

 

POSITION TAKER:   Considering selling if the CCI turns down.

BRITISH POUND/US DOLLAR

If in doubt, blame it on Brexit.  Sterling, house prices, retail prices, industry, trade gap – the whole thing is farcical if it weren’t so serious.  Cable is nearly oversold again.   

 

SHORT TERM TRADER:  Stopped out of my short position on yesterday’s new dip.

 

POSITION TAKER:  Long at 1.3235; stop below 1.3000.  Target 1.4000.

EURO/US DOLLAR

The MACD turned down yesterday as we continue moving sideways, in a symmetrical triangle, centred around 1.1650.

 

SHORT TERM TRADER:  Long at 1.1655; stop below 1.1600.  First target 1.1850.

 

POSITION TAKER:  Square.

GOLD

Bearish momentum increasing as prices edge lower.  News.com.au reports today that a Russian warship carrying up to $190 billion worth of gold has been discovered.  Divers off the coast of South Korea have found the ship, the Dmitrii Donskoi, which was sunk deliberately in a battle in 1905 so that the Japanese couldn’t seize the 5500 boxes of bullion it was carrying.    

                            

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Short at 1242; stop above 1268.  Target 1140.

Nicole Elliott is a long-standing member and Fellow 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.