Daily Alert – Friday 16th April 2021: Sneaky equities grind upwards

Mark NugentApril 2021, Daily Alert

Daily Alert – Friday 16th April 2021: Sneaky equities grind upwards

Despite risk sentiment being indecisive all week, the major equity indices are up on the weekly charts and we have six new all-time highs (all three US indices, FTSE250, Euro50 and Dax30). Equities have been moving up in little increments with no associated positive risk sentiment. This has made trading difficult.

However, I did say I would be looking for any dips. There was a slight dip on the S&P on Wednesday. I did not enter at market because it was a down candle and sentiment was indecisive. I placed a pending buy order with a trigger price at the daily high. So, in other words, pricing had to reverse and the high had to be exceeded before the trade would be triggered. Applying this strategy over the last year or so on the S&P500 would have yielded many more winners than losers.

With the absence of positive sentiment I was not expecting to be triggered but an up day on Thursday took me into the trade and currently I am around 1.5 times risk in the money. I will exit the trade tonight before the close.

I will talk in more detail next week about my pending order trading strategy for buying-the-dip.

There is a brief video in the members area of Trade 19, GBPCAD long, which closed this week at breakeven.

Elsewhere, oil is up on the weekly chart and GOLD is rising on the weak USD.

Currencies are a mess. With indecisive risk sentiment all around, the JPY, AUD, NZD and CAD are hard to predict. The GBP is up on the week as I predicted on Monday but two down days in the middle of the week made trading difficult as you can see with my GBPCAD long closing at breakeven. The EUR is up again but I think that may be a reflection of the weak USD as the EURUSD is the most traded pair. US 10-year yields drop for the second week, hence the weak USD.

There was nothing really seismic on the economic calendar.

Hindsight trade of the week was WTI (oil) long. And if you can explain to me why you took that trade, I will give you a biscuit.

Have a great weekend.

I’ll be back on Monday.

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