Auditors on the rack. Feasting on a carcass

Transcription

1 Auditors on the rack Feasting on a carcass City AM reports today that UK MPs, working on a joint select committee looking into the failure of Carillion, said auditing firms were feasting on what was soon to become a carcass and this image will not be lost on decent citizens. Frank Filed, work & pensions committee member said, PwC had managed to play all three sides doing auditing, advising on pensions, and acting as special manager in the liquidation of Carillion. Over at KPMG, the Financial Times reports that the value of public sector contracts awarded fell by 80 per cent since 2015, scandals surrounding the Gupta family getting the ball rolling. Transport for London yesterday dropped a 1 billion bomb of a deficit caused by fare revenues which are currently well below expectations and forecasts. Not only are passenger numbers down (despite record employment), but the number of journeys undertaken has fallen; government funding has also been reduced. Meanwhile the Santander cycle scheme, which was extended to Brixton yesterday, saw a record 10.4 million hires in 2017 and this January was its busiest on record. Leaner and greener transport? Nicole Elliott

2 DAX 30 Desperately trying to hold above the trend line from 2016 s low and marginally less oversold in the process. The trouble is that triangle consolidation looks to be part of an inverted pennant chart pattern which, on a break below its bottom edge at about 12000, has very big, fast bearish measured targets. SHORT TERM TRADER: Small short at 12535; stop well above Target POSITION TAKER: Short at 12650; stop above First target 12050, then probably more ii

3 FTSE 100 Breaking immediate very steep trend line resistance by inching sideways and stuck below what had been first horizontal support at 7200 and above the more important 7100 despite being oversold. The rally from Tuesday s low is not a proper bounce. SHORT TERM TRADER: New tiny short at 7180; stop well above Target POSITION TAKER: Small short and looking to re-sell as close to 7300 as I think I can get for a drop to the 6675 area iii

4 S&P 500 No longer oversold as prices consolidate between what had been trend line support from an interim low in 2017 and above 2016 s low point. Rather like FTSE 100 price action since the slump might be an inverted pennant. SHORT TERM TRADER: New short at 2660; stop well above Target POSITION TAKER: Short and sold some more this morning for another drop to 2455 and maybe a lot more iv

5 BRITISH POUND/US DOLLAR Holding Fibonacci 61 per cent retracement support and the commodity channel index is trying to turn bullish. Note that dollar/yen today has broken below , trading almost at its lowest level since November SHORT TERM TRADER: Square. POSITION TAKER: Long at ; stop well below First target , then v

6 EURO/US DOLLAR The euro must have more underlying bullish momentum than we had thought as the commodity channel index has not dipped below -100 as it did over Christmas. SHORT TERM TRADER: Small long at ; stop well below Target POSITION TAKER: Square vi

7 GOLD The small bounce from Fibonacci retracement support at 1316 has erased most bearish momentum. SHORT TERM TRADER: Small short at 1335; stop above Target POSITION TAKER: Short at 1330; stop above Target 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