Daily Alert – Friday 23rd July 2021: US equities back to all-time highs

Mark NugentDaily Alert, July 2021

Daily Alert – Friday 23rd July 2021: US equities back to all-time highs

Well, it seemed like the end of the world on Monday. Worries about inflation, the delta variant, US-China tensions and getting old caused risk assets to drop, continuing the move from the week before. But the sun came up on Tuesday morning, risk sentiment was positive and has just about stayed there all week.

US equities have made a full recovery and are at all-time highs. WTI (oil) eventually paid attention to its own fundamentals and has now fully reversed (and some) Monday’s almost 7 percent decline. The JPY tracked sentiment accurately as did the AUD. I did not trade AUDJPY as I’d like to see just a wee bit more good behaviour before I jump back in. The EUR is down on the week after yesterday’s dovish ECB where it was made clear that the bank would not remove accommodation too early as they have before and would allow inflation to overshoot the 2 percent target. The GBP sank like a stone and then recovered, ending the week slightly up for reasons unclear.

I said on Monday that this week was all about equity and oil reversals. And so it has been. I am in S&P500 long and WTI long. Combined unrealised profit is around 8 to 9 percent. I will close them later tonight and there will be videos on Monday.

Things will be slightly different as of Monday. I will move to four videos per week, Monday through Thursday. I will cover the weekly review on the following Monday. The videos will be available around 9am or before. I think this move (actually a return to what I did for years) will help you in your trading journey.

That’s it from me.

Have a great weekend.

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