Daily Alert – Friday 14th August 2020: Japan225 and CADJPY are trades of the week

Mark NugentAug 2020, Daily Alert

Daily Alert – Friday 14th August 2020: Japan225 and CADJPY are trades of the week

We started the week with three straight days of risk-on sentiment, something we have not seen is a long time. This allowed me to go long with Japan225 which I closed earlier today for a gain of 2.42% on a risk of 1% of my account. The video of this trade is available in the VIP Club members area under the “Trades” tab.

Sentiment was more indecisive yesterday and so far today.

The economic calendar did not yield too many surprises. On Wednesday the UK GDP q/q figure (-20.4%) was shocking but hardly unexpected. In the US we saw some good CPI data and Unemployment Claims were better than expected. Today saw mixed Retail Sales, with the headline number missing and the core number exceeding expectations.

Equity indices are very slightly up on the week. The S&P500 has butted up against resistance at all-time high. The best performing equity index was the Japan225 as it benefitted from the weak JPY.

WTI continues to cling to resistance round USD42/bbl.

GOLD saw a significant drop on Monday. As the week draws to a close, around half of the drop has been recovered.

The three days of risk-on sentiment at the start of the week was enough to see the JPY fall on the weekly chart, as you would expect. Commodity currencies were more mixed. The AUD was flat, NZD down and the CAD was the only one of the three to behave as expected as it rose over the week. The EUR has had an up week (as per my bias) despite a fall on Monday. The USD moved down slowly. Most moves were not big enough to yield a decent reward/risk ratio with the exception of CADJPY long which Steve had the foresight to take.

Have a great weekend and I’ll be back on Monday with your Trading Plan for Week 34.

VIP Club members can get the final powerpoint HERE under the “Videos” tab.