Last month ex-head of the CIA David Petraeus remarked that Saudi Arabia is "gradually running out of money", comments aimed at their sovereign wealth fund. Yesterday on CNBC finance minister Mohammed al-Jadaan responded: "No, we are not running out of money’" as he unveiled next year’s budget. This assumes real economic growth of 2.3 per cent and $270bn in spending. He added that they were trying to increase their non-oil revenue, saying they had plenty of foreign cash reserves and ‘’lots of assets’’ at the country’s disposal.
Reuters reports that yesterday, at the crack of dawn, the biggest haulier in the United States filed for Chapter 11 bankruptcy protection from creditors. Indianapolis-based Celadon thereby leaves 3000 truck drivers stranded and 500 administrative staff facing a brutal holiday season. CEO Paul Svindland said in a statement: "Celadon has faced significant costs associated with a multi-year investigation into the actions of former management, including the restatement of financial statements. When combined with the enormous challenges in the industry, and our significant debt obligations, Celadon was unable to address our significant liquidity constraints through asset sales or other restructuring strategies."
DAX 30
Sort of rolling over gently as bearish momentum grows on the daily chart.
SHORT TERM TRADER: Short at 13200; stop above 13375 with a target at 12335.
POSITION TAKER: Square.
FTSE 100
A perfect doji candle yesterday might mark another new interim high, and has added fractionally to bearish momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7300; stop above 7325. Target 7100.
S&P 500
Momentum isn’t bullish today despite the index hovering ever so close to the record high. Once again at yesterday’s repo opening at the Fed window there was massive demand for year-end cash.
SHORT TERM TRADER: Small short at 3112; stop above 3160. Target 2975.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Pausing for breath yesterday while keeping bullish momentum steady.
SHORT TERM TRADER: Small long at 1.2950; stop below 1.2980. Target 1.3350.
POSITION TAKER: Long at 1.2950; stop below 1.2895. Target 1.3350.
EURO/US DOLLAR
A bit of a waste of space this, really.
SHORT TERM TRADER: Short at 1.1050; stop well above 1.1100. Target 1.0930.
POSITION TAKER: Square.
GOLD
At a standstill as it’s got no momentum.
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.
