Morning Trading Comments

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Malcolm Black
5 years ago
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1 Wednesday, June 13, Morning Trading Comments SUMMARY OF TRADING VIEWS The S&P 500 index is now close to the 2800 area, a potential important resistance zone. It will be interesting to see how this index will react in this zone as bullish traders may be tempted to book profits here. In Europe, most indices remain uninspiring and globally weak. The technical bounces seen over the last two weeks are not enough to significantly improve their technical outlook. Whilst Singapore s summit was considered as a major event for Korea, it seems that investors do not really care about this meeting. Technically speaking, the Kospi index remains locked inside a trading range. It has been trading sideways near its 200-day MA since February. It seems that investors are still waiting for the next catalyst to take new positions and yesterday s event was obviously not one of them. The MSCI Emerging Market index has been showing a similar trendless pattern over the last 4 months with the weakest region being Latin America. Regarding Kospi, I would preferably go with the break. Seller below 2400 with targets between 2350 and 2270 or long above 2510 with January highs in sight. CROSS ASSET EVENTS Kospi index still locked inside a trading range after Singapore summit Technical Analysis Cyril BAUDRILLART, CFTe cyril.baudrillart@tradition.com

Wednesday, June 13, 2018 2 DETAILED TRADING OUTLOOK ON MAIN INDICES S&P 500 E-MINI FUTURE (ESM8) RESISTANCES 2800 / 2815 / 2827 SUPPORTS 2780 / 2770 / 2750 Comments The 2800 resistance zone is now

2 Wednesday, June 13, DETAILED TRADING OUTLOOK ON MAIN INDICES S&P 500 E-MINI FUTURE (ESM8) RESISTANCES 2800 / 2815 / 2827 SUPPORTS 2780 / 2770 / 2750 Comments The 2800 resistance zone is now close. PREFERRED CASE for next days The index stayed strong yesterday but momentum is decelerating as prices are getting close to 2800 with 240 & 60-min RSI now forming bearish divergences. Too early to expect a significant bearish trend reversal but the index should encounter resistance near EURO STOXX 50 FUTURE (VGM8) RESISTANCES 3500 / 3530 SUPPORTS 3470 / 3450 / 3420 Comments The 3500 area remains key resistance. PREFERRED CASE for next days The index again encountered resistance near 3500 yesterday. Mixed view as long as this level is not surpassed as the relief rally which started in late May could just be a technical bounce ahead of a new down leg towards 3300.

Wednesday, June 13, 2018 3 DAX 30 FUTURE (GXM8) RESISTANCES 12951 / 12990 / 13048 SUPPORTS 12750 / 12600/ 12540 Comments 12951 Fibonacci reached

PREFERRED CASE for next days Traders decided to sell into the rally towards an important Fibonacci resistance at 12951 yesterday.

Possible start of a new relief rally this morning but watch resistances around 12900 then 12950.

3 Wednesday, June 13, DAX 30 FUTURE (GXM8) RESISTANCES / / SUPPORTS / 12600/ Comments Fibonacci reached yesterday but not broken. PREFERRED CASE for next days Traders decided to sell into the rally towards an important Fibonacci resistance at yesterday. Also notice that the index remains unable to make a clean break above the declining 20-day MA. Overall the index s technical outlook remains mixed. Possible start of a new relief rally this morning but watch resistances around then DAILY SCREENING OF EUROPEAN EQUITIES (STOXX 600) Upside breakouts IMCD Downside breakouts GAM Holding TREND FOLLOWING IDEAS TRADING BUY Near 200-day MAs Arkema Perfected TD setup 9 Buy - Oversold - CONTRARIAN TRADING IDEAS TRADING SELL Perfected TD setup 9 Sell Euronext, Telenor, United Internet Overbought ALTICE EUROPE See all charts in next pages

4 Wednesday, June 13, TREND FOLLOWING IDEAS WITHIN STOXX 600 INDEX Upside breakouts IMCD NA Equity : IMCD NV Downside breakouts GAM SE Equity : GAM Holding AG

5 Wednesday, June 13, Stocks back on 200-day MA CONTRARIAN TRADING BUY IDEAS WITHIN STOXX 600 INDEX AKE FP Equity : Arkema SA

6 Wednesday, June 13, CONTRARIAN TRADING SELL IDEAS WITHIN STOXX 600 INDEX Daily Perfected Setup 9 Sell ENX FP Equity : Euronext NV TEL NO Equity : Telenor ASA UTDI GY Equity : United Internet AG

7 Wednesday, June 13, Stocks overbought on a daily basis ATC NA Equity : ALTICE EUROPE NV

8 Wednesday, June 13, Technical Analysis Equity Sales Cyril BAUDRILLART Cyril.baudrillart@tradition.com Methodology All technical indicators used in this publication are based on historical prices broadcasted by Bloomberg. Several types of indicators are used in this report such as Bollinger Bands, Oscillators (RSI, MACD), Point & Figure charts, Ichimoku, Keltner Bands and other technical analysis tools. More details on how to interpret and use these tools are available upon request. Market timing indicators developed by Tom DeMark are also used in this report. The DeMark Indicators are a registered trademark of DeMark Analytics, LLC. Please note that all the content shown are my personal views and based on my own interpretation of the DeMark Indicators using the DeMark Service for Bloomberg. Please visit for more information. Disclaimer Any investments or securities referred to in communications between us ( Investments ) may involve significant risks and not necessarily be suitable for all investors. Such risk may involve, without limitation, market risk, high volatility, credit and default risk, illiquidity, currency risk and interest rate risk. There can be no assurance that the Investments will achieve their investment objective and as a consequence an investor may in certain circumstances lose their entire investment. Any potential investor should ensure they understand all of the risks associated with these Investments, including any legal, tax, accounting and other business considerations. Investors are deemed to have sufficient knowledge, experience and access to appropriate professional advice to assess the suitability and risks of an investment in these Investments. TFD will not be liable whatsoever for any direct, indirect or consequential loss arising from any use of the information relating to the Investments ( Information ) or any omission by TFD in respect of such Investments. While every effort has been made to verify the accuracy of Information, including any valuations, opinions or estimates, no representation or warranty is made as to its validity, timeliness, completeness, accuracy or reliability and it should not be relied upon as such. All Information is subject to change without notice. In producing all Information, TFD is not acting in any capacity whatsoever as a financial adviser or fiduciary to potential investors. Potential investors must consult with their own legal, regulatory, tax, business, investment, financial and accounting advisors as deemed necessary. No provision of information regarding Investments shall constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in any particular trading strategy. This document is directed at Eligible Counterparties and Professional Clients as defined by the FCA. This document is not for distribution to nor should it be relied upon by Retail Clients as defined by the FCA. This document is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to any applicable law or regulation. The investments referred to in this document are not at any time to be offered, sold, resold or delivered, directly or indirectly, in the United States or to US persons. This document may not be distributed in the United States. Please note that, for business or compliance reasons, we may monitor and read s sent or received using our servers or equipment. TFD hereby reserves all rights in the Information and you may not disseminate the Information without prior approval.

Morning Trading Comments

Thursday, May 24, 2018 1 Morning Trading Comments SUMMARY OF TRADING VIEWS After two months of ultra-low intraday volatility, core European stockmarket indices corrected sharply yesterday with the overstretched