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Market Outlook: Putin upstages Trump’s trade deal

Announces sweeping constitutional changes
January 16, 2020

Pomp and grand gestures in Washington as US President Trump and Chinese vice-premier Liu He and his entourage sign phase 1 of a trade deal which they have haggled over for months. Markets had priced it in and shrugged their shoulders. Over in Russia President Putin, after his state of the nation address, saw Prime Minister Dmitry Medvedev and his government resign. Some say this is to make way for sweeping constitutional changes altering significantly the balance of power between the Kremlin, legislative and judicial structures.

Data published in China this morning showed that in December new house prices in 70 major cities rose at an annualised rate of 6.6 per cent, down from 7.1 per cent the previous month, the slowest pace in 17 months and a lot lower than the 9.7 per cent gain a year ago.

DAX 30

Rubbish ranges and no momentum.   

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:  Square.

FTSE 100

So much for an exciting start to the year and a good time to get involved.

 

SHORT TERM TRADER:   Square.

 

POSITION TAKER:  Square.

S&P 500

Inching to a fractionally higher high and almost overbought; not pretty.  

 

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Here and in many other currency pairs the Average True Range (ATR) is decreasing, here the market clinging to the long-term trend line.

 

SHORT TERM TRADER:  Small long at 1.3075; stop below 1.2900. Target 1.3500.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Looking a little more interesting with divergence as prices pick up from Fibonacci retracement support and bearish momentum wanes.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Holding above pivotal support at 1540 thus keeping momentum bullish.  

                            

SHORT TERM TRADER:  Small long at 1544; stop below 1530. Target 1580.

 

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.