Good morning and happy Friday to everyone. The weather is Germany is definitely cold at the moment. And so is the heart of the German/Russian 70-year-old who has been rearrested for a politically motivated triple stabbing of refugees. I understood that there was some unhappiness with the government’s handling of the migrant ‘crisis’, but that’s just crazy. In other news, they found a WWII bomb in Frankfurt’s suburban railway system, as you do, right on the Börse’s doorstep. But pretty light news other than that.
Today we have European CPI numbers at 10am UK time and Coeure and BoE speeches later as well. Watch out for the Fed monetary policy report as well.
WEBINAR & TRADING STRATEGY TODAY
Below is the link for today’s webinar and my strategy for today. If you continue down, you will see the DAX charts.
[mepr-active memberships=”8647,11876,11639,8648,9747,11080,8876″ ifallowed=”show” unauth=”both” unauth_message=”PREMIUM CONTENT. If you are a ‘Signals Only, Premium or Gold subscriber, then please log in to view this additional content.”]
The webinar link is: https://zoom.us/j/7010887977?pwd=s2WHntOLuSo
Option 1 – Sell the gap down to the point of ignition on the DAX, FTSE or EuroStoxx
Option 2 – Buy at the bottom of the gap on the DAX, FTSE, EuroStoxx
Option 3 – Target the trend defining levels, assuming the move higher will have momentum
I am not taking the short, because I will be in a webinar, but I will be looking for options 2 and 3
[/mepr-active]
DAX CHARTS
Eyes are no firmly on whether or not the DAX can hold this breakout above this TPO consolidation (range). We have been trading sideways in this large range for over a week now. Coils will often be broken with a ‘zoom/retest’.
s
Dax Breaks Resistance
I am finding it interesting how the DAX is responding to the pivot points and for the last two days, it has closed close to its pivot. Perhaps that’s just regular behaviour for markets trading in a wide range. Perhaps it’s another way to identify consolidation.
Dax Respects Pivot Points
I am watching this broken black ‘press line’ that just got broken (gapped). If we continue higher from here next week, we may be able to use that press line as a centre line and project a target on the other side. If that move was to happen, then we could capture part of a nice 200 point move.
Dax Press Line Broken
Another ‘gap’ through the median line of the main fork, still under the upper median line parallel. However we are around the median line of this newer fork. I wonder whether we turn around here, to close the gap. Or at least test the median line of the original fork once more.
Dax Forks
FTSE CHARTS
This idea worked out well from yesterday, although just missed out on the profit target.
FTSE Setup from yesterday
A difficult chart to read, but technically we are still bearish below 7312, so keep it simple.
EUROSTOXX CHARTS
The gap through this center line suggests that we can now use a fork instead of an ACR line set. But taking out 3445 could be significant, depending on how it reacts. The question is: are we going to expand through 3445 or is this just a ‘wash’ of the area. A wash is similar to a ‘stop loss sweep’ or fake breakout.
EuroStoxx Gaps Above Centre Line
Sideways and choppy, this market has been technically bearish below 3445, we are seeing signs that this level could be ready to break.
EuroStoxx Resistance Broken
