Join our community of smart investors

Market Outlook: Wuhan to build 1000-bed hospital – by Monday

Official newspaper Changjiang Daily reports
January 24, 2020

As we reported yesterday, hospitals in the city of Wuhan, believed to be the centre of the corona virus outbreak, have been overwhelmed, so much so that some people over the last few days have travelled to other places to seek medical help – possibly explaining its spread to other neighbouring cities which have now also been subject to transport bans. Today Reuters reports that pre-fabricated buildings are being erected around a holiday park on the outskirts of the city, originally intended as a leisure facility for the 11 million inhabitants. Head of the WHO said: ‘’make no mistake, though this is an emergency in China, it has not become a global health emergency.’’

Yesterday the US Office of the Comptroller of the Currency banned former Wells Fargo CEO John Stumpf from the banking industry, for life, and fined him personally $17.5 million for the fake accounts scandal. The OCC says it will continue to target other individuals involved, while the bank said it ‘’will not make any remaining compensation payments that may be owed to these individuals’’.

DAX 30

Recent price action is a smaller potential broadening top formation inside a bigger one – a fractal.  Despite yesterday’s small bullish hammer candle,  momentum dipped into red territory.   

 

SHORT TERM TRADER: Short at 13460; stop above 13640. Target 13000.

 

POSITION TAKER:  Square.

FTSE 100

Momentum turned a tad more bearish on yesterday’s close in a dragonfly doji.

 

SHORT TERM TRADER:   Square.

 

POSITION TAKER:  Square.

S&P 500

Overbought, yet manages to post what looks like a new record high close.  

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Momentum turned just a little bullish on yesterday’s close as the US dollar weakens fractionally, here and in other currencies.

 

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

 

POSITION TAKER:  Square.

EURO/US DOLLAR

So, the MACD was right after all. The euro’s slide wasn’t helped by the news that the ECB’s strategic review would take until at least December to complete where the inflation target would be reconsidered, and Christine Lagarde said she was ‘’not a despotic president…but it may be that we do not have unanimity’’.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Carefully hovering above the pivotal 1540 level, but three consecutive doji candles are a worrying sign.  

                            

SHORT TERM TRADER:  Square.

 

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.