Daily Alert – Friday 24th July 2020: A very tradable game of two halves

Mark NugentDaily Alert, July 2020

Daily Alert – Friday 24th July 2020: A very tradable game of two halves

As the week draws to a close, it has been a game of two halves. The first half (Monday to Wednesday) saw risk sentiment being indecisive. The second half (Thursday and today) saw sentiment being moderately risk-off.

The markets were very well behaved and acted in accordance with sentiment, unless there was a reason to do something else.

Moving in line with sentiment, equities moved up in the first half and down in the second. They are now flat on the week.

The JPY and commodity currencies also followed sentiment. The JPY was down in the first half and up in the second. The commodity currencies acted in the opposite manner. All very tradable.

Two assets had better things to do than follow sentiment. GOLD continued up, driven by a general bullish view on the precious metal, and central bank yield curve control. Secondly, the EUR soared on the believe that the EuroZone has handled Covid-19 better than any other region or country, and the agreement of the massive budget and recovery package on Tuesday morning. This was further evidenced by today’s excellent PMIs in France and Germany.

My GOLD long and EURUSD long, both placed on Monday night, remain open. Each looks likely to be in the top 5 trades of the year. I will exit them before the markets close tonight and publish the brief review videos on Monday, along with your Trading Plan for Week 31.

There was a huge amount of opportunity this week. I hope you made some money. Have a great weekend.

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