Daily Alert – Friday 7th May 2021: Equities shine across the world

Mark NugentDaily Alert, May 2021

Daily Alert – Friday 7th May 2021: Equities shine across the world

Another week of indecisive risk sentiment, but with better trading opportunities.

Equities are up on the week, with the S&P500, Dow 30 and the good-old FTSE250 looking likely to make new all-time highs. WTI (oil) and GOLD are also on the move upwards. The USD gets hit by today’s very bad miss on Non-Farm Payroll. The USD plunges 1 minute before the announcement. This happens all the time. It’s a scandal. The EUR is boosted by the ECB’s Kazaks saying the decision to slow bond buying could be possible in June. The GBP is up on the week with the Bank of England showing the first, slight signs of QE tapering with a 0-1-8 (up-down-no change) vote to maintain the current level of spend against an expected 0-0-9. That may seem trivial to you, and maybe it is, but markets react to that kind of stuff.

I traded oil long. It almost got to 2x risk in the money before it reversed, taking me out at breakeven. I feel as if I may have missed out here and should have closed half the trade at what turned out to be the weekly high, but that’s hindsight. The pain of missing out creates fear of missing out and that is a killer. I will do what I always do with trading-related emotions – acknowledge them and move on, making sure they do not make my decisions for me.

I traded Japan225 with more success. Going long at support with a pending order, I closed the trade a few hours ago for +2.8% on a risk of 1%. So, a nice start to the month.

The April Performance Report is available under the Performance tab above. Brief videos of all closed trades are in the VIP Members Club area.

Hindsight trade of the week was GOLD long. Second best was pretty much any equity index, so I am happy I got some of that.

Have a great weekend and see you on Monday.

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