FOMC Minutes published. Of meeting ending November 1st

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Edgar Arnold
5 years ago
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1 FOMC Minutes published Of meeting ending November 1st CNBC reports that while members of the US Federal Open Market Committee were fairly optimistic about their economy in general, slightly concerned about low inflation, but they worried that financial markets were posing a danger. Saying, in light of elevated asset valuations and low financial volatility, several participants expressed concerns about potential build-up of financial imbalances. They worried that a sharp reversal in asset prices could have damaging effects on the economy. Thanksgiving holiday in the US today and markets are closed. Many will be off work again tomorrow, so-called Black Friday. I notice with horror that the practice has been adopted in Britain and discounts have started probably on all sorts of unnecessary items this week. Nicole Elliott

2 DAX 30 Reversing Tuesday s gains with a bearish engulfing candle yesterday so that we are back down and tentatively testing Fibonacci 38 per cent retracement support. This hints that a first interim high following the record high this month might be in place. SHORT TERM TRADER: Short at 12960; stop above First target POSITION TAKER: Square ii

3 FTSE 100 A spectacular shooting star/doji candle yesterday where the high lines up with the many interim highs in August and September. Like the Dax it suggests a first new interim high might be in place following this month s pathetic attempt at a new record high. Note that momentum is clearly bearish though not as strong as it was at one point in September. SHORT TERM TRADER: Short at 7470; stop above Target POSITION TAKER: New short at 7375; stop above Target iii

4 S&P 500 In what now looks like a small broadening top formation yesterday s tiny doji hints at an undecided market. SHORT TERM TRADER: Short at 2565; stop above First target 2515 and more realistically POSITION TAKER: Square iv

5 BRITISH POUND/US DOLLAR Bouncing from 50 per cent retracement support to manage a close above the upper edge of rectangle consolidation. Bar the brief foray in the second half of September this is the strongest daily close in goodness knows how many months suggesting that further sterling gains are on the cards. SHORT TERM TRADER: Took profits at my original target of Will consider re-buying on a weekly close above here tomorrow. POSITION TAKER: Will generally start thinking about selling the US dollar depending where different currencies close tomorrow. Careful though as markets will be thin v

6 EURO/US DOLLAR The euro is reacting to generalised US dollar weakness rather than any good news from the Eurozone. Yesterday s rally has turned the commodity channel index up again, though we have stalled at a re-drawn trend line. SHORT TERM TRADER: Stopped out of my short position this morning. POSITION TAKER: Square vi

7 GOLD A third decent reversal candle in four working days suggests a market thrashing around and looking for direction. SHORT TERM TRADER: Short (and a little worried) at 1281; stop above Target POSITION TAKER: Square vii

8 Nicole Elliott is a long-standing Member 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. The Financial Times Ltd Investors Chronicle is trademark of Financial Times Ltd. "Financial Times" and "FT" are registered trademarks and service marks of the Financial Times Limited. All rights reserved. No part of this publication or information contained within it may be commercially exploited in any way without prior permission in writing from the editor. Material (including tips) contained herein is for general information only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decision. Appropriate independent advice should be obtained before making any such decisions. Financial Times Business Limited does not accept any liability for any loss suffered by any user as a result of any such decision. Do remember, particularly if you are new to stock market investment, that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. Past performance is not necessarily a guide to the future. In comparing the investments described in this publication, you should bear in mind that the nature of such investments and of the returns, risks and charges differ from one investment to another. Smaller companies with a short track record by their nature tend to be more risky than larger, well-established companies. The investments and services mentioned in this publication will not be suitable for all readers. In some cases (for example, but without limitation, where an investment or service is provided by a party who is not authorised by the Financial Services Authority) you would not be protected by the investor protection measures required under the Financial Services and Markets Act 2000: for the sake of illustration only, you might not be able to claim under the Financial Services Compensation Scheme. Provision of the investments or services mentioned on this website may be restricted by law depending on the jurisdiction in which you are resident, and on what type of investor you are. If you have any doubts about the suitability or legality of any investment or service, you should take appropriate professional advice. The views and recommendations in this publication are based on information from a variety of sources. Although these are believed to be reliable, we cannot guarantee the accuracy or completeness of the information herein. While we require our journalists and editorial staff to comply with the Press Complaints Commission Code of Practice, you should be aware that they may have interests in investments and/or providers of services referred to in this publication. viii

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