Daily Alert – Friday 5th February 2021: Retail traders get spanked on SILVER

Mark NugentDaily Alert, Feb 2021

Daily Alert – Friday 5th February 2021: Retail traders get spanked on SILVER?

This week was better for trading. We started Monday with indecisive risk sentiment, as we often do. By the end of the day, we were moderately risk-on. I entered two trades. Firstly, an S&P500 long which made 1.98%. The second trade was SILVER short, which I detailed in Monday’s Trading Plan. As expected, the price moved down nicely and I closed it out for a gain of 5.38%.

Midweek saw a lull and sentiment was indecisive. Today we are ending the week moderately risk-on.

Over the week, global equity indices are up, and it looks like the three US indices and the Japan225 will close at new all-time highs. Multiple Fed members have been talking up the US economy which is meaningful as they are usually cautious people, not prone to hyperbole. Oil makes a move up on the positive sentiment and GOLD takes a fall back to the 50MA. All correlations working nicely. In the currency markets, the GBP is propelled upwards by the rapidly expanding vaccine rollout. The EUR takes a big hit driven by higher-than-expected inflation, political problems in Italy and reputational damage from the vaccine stupidity. The JPY is down and all three commodity currencies are up so at the weekly level all is well. However, on closer inspection, the JPY/commodity currency group has only shown the normal correlation with sentiment today. Untradable.

Hindsight says opportunity of the week was SILVER short. So, a pat on the head for me. I did miss the second half of the S&P500 rise after I closed my trade, but the sentiment-o-meter was all over the place and screaming “indecisive”. Oh well.

Elsewhere, the Bank of England essentially kicked negative interest rates into the long grass although if you read only the mainstream media you’d be forgiven for thinking the exact opposite. I don’t know how these clowns hold down a job.

So, I am a bit happier, five weeks in and around 10% up year-to-date. Not as stellar as the recent Gamestop gains, but they were paper gains and for everyone who made a real cash profit, there are a hundred wondering what the hell just happened. Better to get rich slowly.

Brief videos of each closed trade are available for member’s in the VIP Club member’s area. I have also prepared a Performance Report, available in the member’s area and, for everyone, on this site.

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

Members can access the VIP Club members area HERE