Trading Plan – Monday 3rd August 2020: Buoyant start as equities and USD rise
Today, good news on the US manufacturing sector is propelling equities and the USD upwards.
It is not being widely reported but the data shows the Covid-19 situation in the US is improving. The media simply report new cases without any context. However if you look at the data you can see that hospitalisations and declining. The death rate will be next to decline if this trend continues.
Although the Democrats and the Republicans have yet to reach an agreement on the next Covid-19 support package (which is a national disgrace, leaving their furlough scheme unfunded despite both parties wanting to fund it), they will reach an agreement and this will improve sentiment. Once the media wakes up to the improving Covid-19 situation, that will also improve sentiment. Maybe now, or soon, is the time to go long on equities.
As always I discuss in the video my trading themes for the week. Happy trading.
VIP Club members can watch the video HERE