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Market Outlook: Credit Suisse fails its duties

Says Swiss regulator
September 17, 2018

This morning Reuters reports that Swiss regulator FINMA has decided that Zurich-based banking giant Credit Suisse will be overseen by an independent monitor because it has failed to combat corruption.  Cases linked to football’s FIFA, Brazil’s Petrobras and Venezuela’s state oil company were cited.  They also noted that the bank fell short in the fight against money laundering and not only carried out a significant business relationship with ‘a politically exposed person’ but, instead of disciplining the relationship manager for repeatedly breaching compliance regulations for years, it rewarded him with high payments and positive reviews.

Yesterday it was confirmed that Greater Manchester-born Simon Yates won this year’s Vuelta a España cycling race.  It follows Britain’s win of the 2018 Giro d’Italia by Chris Froome and Welshman Geraint Thomas who won the Tour de France in July.  Talk about a hat trick!

DAX 30

Last week’s little bounce has eased bearish momentum by more than we would have thought.

 

SHORT TERM TRADER:  Short at 11940; stop above 12240.  First target 11600.

 

POSITION TAKER:  Short at 11940; stop above 12400.  Target 11000.

FTSE 100

The best that can be said about last week’s little bounce is that we are holding above interim support at 7200 and around some of this year’s lower levels.

 

SHORT TERM TRADER:   Short at 7280; stop well above 7400.  First target 7100.

 

POSITION TAKER:  Short at an average above 7300; stop above 7500.  Target 6925.

S&P 500

Holding in a tiny range at record highs but is still somewhat overbought.

 

SHORT TERM TRADER:  Square

 

POSITION TAKER:   Square.

BRITISH POUND/US DOLLAR

Still struggling with the old trend line and momentum has yet to turn bullish.

 

SHORT TERM TRADER:  Small long at 1.2925; stop below 1.2900.  Target 1.3275.

 

POSITION TAKER:  Long at 1.3110; stop below 1.2900.  Target 1.3600, maybe more.

EURO/US DOLLAR

Losing a little ground against the pound and another one where momentum has yet to turn bullish.  More importantly, I can’t see any discernible pattern in this weekly chart which inspires confidence in any trade I might put on.

 

SHORT TERM TRADER:  Stopped out straight away; probably for the best.

 

POSITION TAKER:  Long at 1.1595; stop below 1.1600.  Target 1.1785.

GOLD

Re-drawing the descending weekly trend line to take into account of last week’s sharp shooting star candle.  Note that momentum remains steadily bearish despite consolidation around current levels for four consecutive weeks.   

                            

SHORT TERM TRADER:  Short at 1195; stop above 1220.  First target 1160.

 

POSITION TAKER:  New short on Friday’s close at 1194; stop above 1215.  First target 1160.

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.