Download US State of the Union `But tonight, we turn the

US State of the Union
‘But tonight, we turn the page’.
Republicans in the majority now in Congress, President Obama addressed them in
his annual State of the Union address in an upbeat mood. ‘Fifteen years into this
new century…that dawned with terror touching our shores. It has been, and still is, a
hard time for many’. He continued, ‘that’s what middle-class economics is – the idea
that this country does best when everyone gets their fair shot’.
The World Economic Forum starts today in Davos, a small ski resort in Switzerland.
Issues to be discussed include, as always, economic growth, plus financial systems,
social development, health for all and environmental stability. Amid tight security
1,700 private jets are expected to swarm Swiss airspace, mainly at Zurich airport.
Time for an Uber App for Lear jets?
Nicole Elliott
DAX 30
IG Index chart
Waiting with baited breath for the much anticipated ECB decision tomorrow.
Consolidating at the top of last week’s range in what looks like a little pennant
formation. Maybe not the most attractive investment, but when one surveys
the landscape, precious little out there looks juicy.
DAY TRADER: Square.
POSITION TAKER: Hoping to buy on a dip towards 10000.
SUPPORT
RESISTANCE
10200
10065
10000
9940
10300
10335
10400
10600
ii
Wednesday, 21 January 2015
FTSE 100
IG Index chart
Inching up to the 200 day moving average as we wait for Minutes from the
Bank of England at 09:30 GMT today.
DAY TRADER: Stopped out of small short. Now square.
POSITION TAKER: Tiny short at 6500; stop above 6660. Target 6150.
SUPPORT
RESISTANCE
6600
6550
6500
6425
6660
6700
6775
6800j
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Wednesday, 21 January 2015
S&P 500
IG Index chart
The President might be confident that the US has recovered, but this index
right now is not so sure about things. The S&P 500 is consolidating above the
200 day moving average, just above December’s low, looking for direction
yesterday.
DAY TRADER: Standing aside for now.
POSITION TAKER: Traders and spread betters should see the SNB
fiasco last week not as a lesson as to the havoc a central bank can
unleash but a lesson as to what can happen in distorted/extreme/thin
markets.
SUPPORT
RESISTANCE
2000
1980
1977
1965
2033
2045
2068
2095
iv
Wednesday, 21 January 2015
BRITISH POUND/US DOLLAR
IG Index chart
Divergence on the RSI (not as oversold as last time we touched 1.5050) and a
potential small double bottom at this year’s low. Might be time for a short
squeeze to shake the majority who say they are die-hard US dollar bulls.
DAY TRADER: Small long at 1.5200; stop below 1.5000. First target
1.5500, maybe 1.5600.
POSITION TAKER: Many still totting up their estimated losses from last
week’s debacle. Mercifully bond yields dropping will disguise some of
the SNB’s currency losses.
SUPPORT
RESISTANCE
1.5100
1.5075
1.5035
1.4900
1.5200
1.5270
1.5335
1.5400
v
Wednesday, 21 January 2015
EURO/US DOLLAR
IG Index chart
Still very oversold (on a daily and monthly basis) but managing to hang on in
there for another day – and until tomorrow’s ECB meeting. Then Greek
elections Sunday.
DAY TRADER: Square.
POSITION TAKER: Square.
RESISTANCE
SUPPORT
1.1550
1.1500
1.1460
1.1400
1.1600
1.1650
1.1700
1.1750
vi
Wednesday, 21 January 2015
GOLD
IG Index chart
After breaking through the neckline of an inverted head & shoulders base last
week prices have edged through trend line resistance taken from the high in
May 2013 on the weekly chart. This suggests that buying here has been
more aggressive than we had initially estimated. Spot gold should continue
on up to the measured target at 1325.
DAY TRADER: Square and kicking myself for being indecisive.
POSITION TAKER: Slightly more confident about the current rally.
SUPPORT
RESISTANCE
1280
1270
1255
1240
1303
1325
1330
1345
vii
Wednesday, 21 January 2015
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