Trading with point and figure

7320 on ftse...been an excellent pivot to trade from
UK fund managers need to keep it above that for isa deadline..lol
 
- Thin day for statistics features UK Construction PMI and US Trade Balance,
ECB and Fed speakers include Draghi; Austria, Germany and UK to auction
debt; API oil inventories also due

- Markets reverting to asymmetric function of recent years, or does govt
bond rally more to start of new fiscal year purchases from Japan?

..........................................................................

********************
** EVENTS PREVIEW **
********************

As is often the case, this second working day of the month is short on statistical highlights, featuring little more than the UK Construction PMI and the US Trade Balance, however the central bank schedule is busier with Draghi, Liikanen from the ECB, along with Lockhart and Tarullo accompanying the as expected no change from the RBA and a speech from RBA governor Lowe. Holidays in China and India eminently served to reduce market activity to a bare minimum in Asia. Politically yesterday's murderous terror attack casts a very long shadow, on a day which sees the EU Commission hold a seminar on EMU and the second of the French presidential TV debates. Austria (6 & 10-yr), Germany (I-L 10-yr) and the UK (10-yr) also hold bond auctions. Yesterday's 'risk off' short covering rally in govt bonds raises some questions about demand at today's auctions, with the UK to be auctioned 1.25% 2027 on a yield 1.14% and with inflation at 2.3% y/y this hardly offers any attractions in real terms. Indeed across the Atlantic, the rally in Treasuries once again highlighted markets' reversion to a very Pavlovian and asymmetric reaction pattern, with the much lower than expected Auto Sales riding roughshod over any consideration of better than expected Construction Spending (net of revisions) and a very solid Manufacturing ISM, within which the Prices Paid component rose to a 6-yr high of 70.0... despite that sharp drop in oil prices during March. Harker's relatively hawkish comments on the Fed policy outlook were also ignored, underlining that if the Fed does want to hike rates in June, it will again have to lean heavily on a hefty round of verbal intervention to steer market expectations higher, as it did ahead of the March meeting. We would also note that the rally govt bonds may also owe something to start of new fiscal year purchases from Japan, which in relatively thin trading volumes may well have exaggerated the scale of the move. All of this also comes after the IIF offered its annual totalizer for global debt, which came in at an eye watering $215 Trillion or 325% of global GDP, which underlines that the idea that it might ever be repaid is a wanton act of self-deception, but collective myopia is a very powerful force. It being Tuesday, today also brings the latest API petroleum inventories statistics, with oil prices displaying a modestly firmer tone after the recent rout, even if many continue to doubt that the supply overhang will dissipate in the near term. According to the Reuters poll, Crude inventories are seen down 400K and gasoline stocks down 1.5 Mln.


from Marc Ostwald
 
Todays Pivots for DAX n DOW

2cgg9dt.jpg
 
took another at 12235, this morning has been a tight trading range but has been quite profitable with profits of 10 to 20 points bagged on the whole.
 
You must log in or register to reply here.

Similar threads

Michael Carr
  • Article
Equities Technical Analysis Testing Point & Figure Patterns
Replies
0
Views
3K
T2W Bot
T2W Bot
S
Point&Figure
2
Replies
39
Views
7K
subarashi
S
M
Point and Figure
Replies
2
Views
1K
Dentalfloss
Dentalfloss
A
Point and Figure box size for commodities
Replies
4
Views
4K
TWI
TWI
William Rafter
  • Article
Technical Analysis Point & Figure Gone High Tech
Replies
18
Views
8K
GruntnoWay
G
Top