At his regular semi-annual testimony before Congress, Federal Reserve Chairman Jerome Powell noted: "The idea that the US would not honour all of its obligations and pay them when due is something that can’t even be considered." The comments come ahead of the now regular routine of the government reaching its debt ceiling and re-negotiating its level higher – something that might happen on the 2 March, worrying the current holders of the $22 trillion of government paper outstanding.
Yesterday the CME Group was forced to halt trading in derivative contracts on Globex, its electronic platform covering stock, money market, bond and commodity futures and options. Blamed on ‘technical issues’, no trades were carried out and matched for several hours. Recent research published by Netscout yesterday noted that in the year to H2 2018 distributed denial-of-service attacks increased by 200 per cent. International bodies, like the IMF, UN, and US State Department were the main targets.
DAX 30
Bullish momentum’s dropped despite hovering close to early December’s high.
SHORT TERM TRADER: Looking for signs that this year’s corrective bounce has ended.
POSITION TAKER: Square.
FTSE 100
Possibly forming a gentle rounded top as momentum threatens to turn bearish.
SHORT TERM TRADER: Small short at 7120; stop above 7275. Target 6800.
POSITION TAKER: Square.
S&P 500
Overbought and paralysis looks to set in as we eye up November and December interim highs.
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Short at 2795; stop above 2875. Target 2600.
BRITISH POUND/US DOLLAR
Some will say the world’s most hated currency has gathered a few new fans. The reality is that a very crowded trade – shorting sterling – has started harvesting scalps. For the first time since mid-May 2017 the pound dipped below 86 pence per euro, and cable is at its strongest since July 2018.
SHORT TERM TRADER: Watching for a weekly close above the trend line and resistance at 1.3200 before re-buying.
POSITION TAKER: Square.
EURO/US DOLLAR
Nudged higher by cable and lagging.
SHORT TERM TRADER: Long at 1.1305; stop below 1.1325. Target 1.1480.
POSITION TAKER: Square.
GOLD
Going nowhere yet the MACD has ticked down.
SHORT TERM TRADER: Short at 1326; stop above 1350. First target 1300.
POSITION TAKER: Short at 1328; stop above 1350. Target 1255.
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.
