Daily Alert – Friday 12th March 2021: Bond bears top and tail the week

Mark NugentDaily Alert, March 2021

Daily Alert – Friday 12th March 2021: Bond bears top and tail the week

Monday and today, Friday, belonged to the bond bears (sell bonds, yields up) and USD bulls (USD up). The middle of the week saw a pause and equities came to the fore.

On Monday night I was tempted into EURUSD short (theme – USD strength) before the equity bulls took over and I was quickly taken out for a loss of my risk capital, 1%.

Also, on Monday, I placed a pending long trade on the Nasdaq, believing the sentiment-driven move out of Evil Big Tech into so-called Value stocks that was depressing the index was overdone and would reverse. Well, I got that one right. The trade was triggered on Tuesday and I exited earlier today for a gain of 3.21%.

So, a gain of 2.21% on the week.

In the US, the USD 1.9 trillion Relief Bill was passed, as expected. The ECB ramped up bond purchases to increase bond prices and lower yields. However, the ECB have yet to raise the total amount they are prepared to spend, they’re just spending it quicker. This will change.

Over the week, global equities are moderately up. Oil and GOLD have done nothing. GBP is up, and the EUR, USD and JPY are down, all as per my bias stated on Monday. However, trading was difficult due to the Monday/Tuesday dislocation and I was put off by the EURUSD short loss at the start of the week. Maybe it’s time to start trading currencies on a weekly rather than daily basis?

Hindsight trade of the week was Nasdaq long. The best currency trade was CADJPY long, but it was not as profitable as the Nasdaq and I cannot see why I would have traded it as it was reliant on CAD strength which seems somewhat overdone.

Trading is a wee bit tricky at the moment, but still very profitable.

Brief videos of the EURUSD and Nasdaq trades are available for members.

Have a great weekend and I’ll be back on Monday.

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