Yesterday Standard Chartered bank agreed to a $1.1 billion fine covering both the UK and US authorities, the second biggest ever for sanctions busting. They are accused of assisting Iranian controlled operations in Dubai, and the FCA claims their controls were ‘narrow, slow and reactive’.
As they do all too frequently, the IMF has again cut estimates for global economic growth for 2019 to 3.3 per cent from a previously touted 3.5 per cent – and then recover to 3.6 per cent growth in 2020. The usual ‘jam tomorrow’. They blame trade tensions and lack of deals in the pipeline, potentially higher interest rates, and Brexit.
DAX 30
The retreat from this year’s high has eased the overbought situation. We are back down at the neckline of the giant head and shoulders top hinting that the move above here might have been a false break.
SHORT TERM TRADER: Tempted to re-sell.
POSITION TAKER: Square.
FTSE 100
Yesterday’s tiny shooting star candle at this year’s high has eased the overbought situation.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Hovering in tiny ranges at this year’s high, though the overbought situation has eased.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 2800; stop above 2900. Target 2550.
BRITISH POUND/US DOLLAR
Brussels again this evening and no doubt it’ll continue into the early hours to ‘prove’ that heads of state are working really hard for a solution.
SHORT TERM TRADER: Tiny long at 1.3020; stop below 1.2950. Target 1.3300.
POSITION TAKER: Square.
EURO/US DOLLAR
Momentum trying hard to turn bullish but with today’s talks looming in Brussels as well as and ECB meeting and press conference there’s only so much a currency can do.
SHORT TERM TRADER: Long at 1.1245; stop below 1.1170. Target 1.1380.
POSITION TAKER: Long at 1.1225; stop below 1.1170. Target 1.1425.
GOLD
Bearish momentum has eased quite a bit with yesterday’s rally back above the psychological 1300.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1292; stop above 1320. Target 1185.
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.
