Daily Alert – Friday 12th February 2021: Lunar New Year kills the markets

Mark NugentDaily Alert, Feb 2021

Daily Alert – Friday 12th February 2021: Lunar New Year kills the markets

I’m writing to you earlier than usual as the markets are flaaaaaat as a pancake as Lunar New Year falls in China and across Asia.

Equity indices across the world are showing almost no movement on the weekly chart. Even GOLD, which has shown some movement on the daily, gives no net movement on the weekly. All my biases played out on currencies – EUR and GBP up, USD down. However, volatility was low and my one bite, GBPUSD long on Tuesday, closed at breakeven yesterday (video in the member’s area). The JPY was flat, and the commodity currencies are all over the place. All essentially untradable.

In the US, the Dems continue their “unification” of the American people by conducting the impeachment trial of Trump. Yes, that’ll sort it. Biden punctures the USD by talking of “thinking big” on Covid-19 relief (the fear is inflation).

In the UK, Bank of England Governor Bailey warns that the EU are planning to cut the UK off from its financial markets.

Risk sentiment started positive on Monday but by the end of the day it was indecisive and has stayed there all week and does not look like changing today.

With 20/20 hindsight, what was trade of the week….? OK I’ve scoured the charts for 15 minutes and there is no single opportunity that would have yielded two-times risk that was tradable without an ability to see into the future.

So, capital preserved (the first job of a trader) and we live to fight again.

Have a great weekend.

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