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Market Outlook: Fed’s Powell summoned to the White House yesterday

President Trump wanted to talk about negative interest rates
November 19, 2019

Yesterday morning chairman of the Federal Reserve System, Jerome Powell, was invited by the US President to his official residence. The statement said they discussed ‘’the economy, growth, employment and inflation. Chair Powell said that he and his colleagues will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis.’’ This as the Financial Times reports that based on data released yesterday by the Bundesbank 60 per cent of German banks are charging negative interest rates on corporate deposits and 20 per cent are doing so on retail accounts.

The US administration has granted Chinese tech giant Huawei another 90-day extension during which American firms can continue doing business with the company; this is the third time they have done so. This follows last week’s announcement that Huawei employees will receive bonuses as a reward for fighting US sanctions.

DAX 30

Yet another little doji candlestick yesterday, a seventh consecutive one, and overbought.

 

SHORT TERM TRADER: Small short at 13200; stop above 13325. Target 12300.

 

POSITION TAKER:  Square.

FTSE 100

After going nowhere last week, yesterday the market stopped completely.

 

SHORT TERM TRADER:   Short at 7370; stop above 7435. Target 7175.

 

POSITION TAKER:  Square.

S&P 500

Overbought with the tiniest of doji candles yesterday at the top of a potential broadening top chart pattern.

 

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:   Square.

BRITISH POUND/US DOLLAR

Momentum edged into bullish territory yesterday on the close just above the top of the pennant formation.

 

SHORT TERM TRADER:  Small long at 1.2950; stop below 1.2765. Target 1.3350.

 

POSITION TAKER:  Long at 1.2950; stop below 1.2750. Target 1.3350.

EURO/US DOLLAR

The MACD remains unconvincingly bearish.

 

SHORT TERM TRADER:  Short at 1.1050; stop above 1.1100. Target 1.0930.

 

POSITION TAKER:  Square.

GOLD

A hanging man yesterday yet the MACD is barely bearish.  

                            

SHORT TERM TRADER:  Short at 1520; stop above 1500. Target 1440.

 

POSITION TAKER:  Short at 1507; stop above 1520. Target 1440.

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.