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Market Outlook: Ireland now a 3-party nation

After decades of domination between Fianna Fail and Fine Gael
February 10, 2020

Sinn Fein, the political wing of the Irish Republican Army, took 25 per cent of the first-choice votes in this weekend’s general election, something the party leader, Mary Lou McDonald said was a ‘’revolution’’ at the ballot box. The opposition party picked up 22 per cent while incumbent Leo Vardakas’s Fine Gael came third with 21 per cent. As the other two have vowed not to work with Sinn Fein, the table looks set for months of possibly futile negotiations. The results are subject to a recount today.

Economic data from China today show that producer prices rose by a meagre annualised 0.1 per cent in January. On the other hand, consumer prices rose by 5.4 per cent, up from 4.5 per cent, in the year to January caused mainly by rising food prices. Considering the disruption to supply chains over the extended Lunar New Year holiday and the corona virus, food prices are likely to spurt higher again this month.

DAX 30

No longer overbought despite last week’s rally reversing all the previous one’s losses.   

 

SHORT TERM TRADER: Stopped out on the move above 13400.

 

POSITION TAKER:  Short at 12945; stop above 13650. Target 11850.

FTSE 100

Slightly messy last week as the market balks at the bottom edge of the potential, and huge, diamond chart formation – with no momentum.

 

SHORT TERM TRADER:   Short at 7470; stop above 7550. Target 7200.

 

POSITION TAKER:  Stopped out on the rally through 7440.

S&P 500

Unusual price action last week as the index inches up to yet another fractionally higher record high, taking it into overbought territory yet again.  

 

SHORT TERM TRADER: Short at 3260; stop above 3350. Target 3100.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Trapped in a tiny range and no momentum – which is of course better than a currency swirling, swooning, or on the slide.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

No momentum to speak of as we inch closer to last year’s lows.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

Maintaining bullish momentum as prices rally from the pivotal chart level at 1540.  

                            

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.