Join our community of smart investors

Market Outlook: Greek bailout over

But not out
August 20, 2018

European Commission vice president Valdis Dombrovskis proudly announced: ‘’today we celebrate the end of a very long and difficult journey.  What matters now is to build on this achievement by sticking to sound fiscal and economic policies’’.  Basically, Greece can no longer beg for further handouts and is saddled with hundreds of billions of euros that it owes to several supra-national organisations.

Reuters reports that as of today, Britain will stop funding some aid programmes in rebel-held areas of Syria.  Their reasoning is that the situation on the ground makes it just too difficult.  Throwing in the towel?

 

DAX 30

One step closer in both price and time to the horizontal neckline area of a potential head & shoulders top.  Note the MACD just bearish.  Needless to say, Chancellor Merkel and President Putin’s meeting over the weekend ended with nothing being agreed. 

 

SHORT TERM TRADER:  Short at 12635; stop above 12650.  Target 12200.

 

POSITION TAKER:  Square.

FTSE 100

Rather than the weekly dojis that have dominated since June, last week saw a slightly more bearish one with some similarities to a hanging man.  Though it managed to clamber back above the Fibonacci 38 per cent retracement support on Friday’s close, the MACD turned down.

 

SHORT TERM TRADER:   Square.

 

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

S&P 500

US stock markets more resilient than some of the other rather fragile-looking specimens, and this index not horribly overbought as it was last time we got to current price levels.

 

SHORT TERM TRADER:  Short at 2795; stop above 2880.  Target 2600.

 

POSITION TAKER:   Short at 2805; stop above 2900.  Target 2555.

BRITISH POUND/US DOLLAR

A tiny little weekly doji when cable is clearly oversold suggests that it’s trying to put in an interim low.  Better luck this time, hopefully.

 

SHORT TERM TRADER:  New little long at 1.2740; stop below 1.2650.  Target 1.3000.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

A little hammer on the weekly chart at the 50 per cent retracement level and the euro is oversold.  Another one trying to put in an interim base.

 

SHORT TERM TRADER:  New small long at 1.1420; stop below 1.1300.  Target 1.1600.

 

POSITION TAKER:  Square.

GOLD

Overextended and overexcited at 1160 last week, as we had though, and likely to hold above this level for at least another fortnight.  Now trying to decide at which sort of level I will re-sell.   

                            

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Short at 1242; stop above 1200.  Target 1140.