Daily Alert – Friday 11th June 2021: Quiet markets are dangerous for traders
The markets spend another week in the back garden sipping white wine.
Equity indices hardly move. WTI moves up a little and GOLD down a little. The US 10-year yield drops for four consecutive days before ticking up a little today. This pushed the USD down for the week until it started to move up at 9am this morning and continued to do so all day until the time of writing, almost certainly exiting the week as a bull candle. This seems an over-reaction to the slight 10-year yield rise today. There is no other catalyst.
The EUR was having a bullish week until yesterday’s dovish ECB where they decided to maintain their Pandemic Emergency Purchase Programme at an accelerated rate. The GBP falls as there are reports of a four-week delay to the reopening, the decision point for which is on Monday. The commodity currencies meander as is their want in the absence of strong risk sentiment. The GS Commodity Index is flat.
My weekly trading experiment has taken a bit of a knock as the EUR and GBP sink, but WTI may save the day. I should get out later tonight at around breakeven. Look out for the full report on Monday.
Trade of the week was a litre bottle of Bombay Sapphire in Sainsburys for 20 quid.
It has been a bit quiet for a few weeks now. This happens, but there is a danger. I do the reading and the thinking every day. I keep on top of what is happening. When opportunities arise I will spot them. Now is not the time to lose focus and take your eye off the ball. You need to stay match fit. Trust in the process.
Have a great weekend. I’ll be back on Monday.
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