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Market Outlook: Friday front page news at Communist Party’s People’s Daily

‘The trade war can’t bring China down’
May 17, 2019

‘It will only harden us to grow stronger’, Reuters reports this morning. The piece goes on, ‘what kind of storms have not been seen, what bumps have not experienced for China, with its more than 5000 years of civilisation? In the face of hurricanes, the nearly 1.4 billion Chinese people have confidence and stamina’. Meanwhile China Central Television has this week aired patriotic documentaries about the 1950-1953 Korean war.

Because President Erdogan agreed to buy the advanced Russian S-400 missile defence system, yesterday the White House wrote: ‘Consistent with my determination that it is appropriate to terminate the designation of Turkey as a beneficiary developing country under the Generalised System of Preferences, effective May 17 2019, I have determined to remove it from the list of developing country WTO members’.

DAX 30

Bouncing rather more than expected yet momentum is still bearish.

 

SHORT TERM TRADER: Stopped out of my short position12200.

 

POSITION TAKER:  Very cross that I’ve been stopped out here too.

FTSE 100

By retracing just over half of the latest decline, it almost turned bearish momentum.

 

SHORT TERM TRADER:   Stopped out for a very small loss.

 

POSITION TAKER:  Short at 7275; stop above 7400. Target 6875.

S&P 500

A spike high above the half-way retracement point hints that a new interim high might be in place.

 

SHORT TERM TRADER:  Short at 2880; stop above 2960. Target

 

POSITION TAKER:   Square.

BRITISH POUND/US DOLLAR

 

Giving up two thirds of this year’s gains as PM Theresa May said to be in tears as she’s told she must quit her job by the 30th June at the latest. Lots of Conservative MPs are only too keen to take over – none of which helps sterling.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

 

Looking rather heavy as we appear to have stalled, if not failed, once again against trend line resistance.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Dropping quickly back below 1300 and the commodity channel index has turned down below 100.

                            

SHORT TERM TRADER:  New short at 1287; stop above 1303. First target 1270.

 

POSITION TAKER:  Square.

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.