Daily Alert – Thursday 10th November 2022: Shorting S&P500 and GBPUSD; watching CPI

Mark NugentDaily Alert, Nov 2022

Daily Alert – Thursday 10th November 2022: Shorting S&P500 and GBPUSD; watching CPI

Good morning.

Risk sentiment soured yesterday. This gave me the entry I needed to trade both the S&P500 and GBPUSD short. I’d spoken all week about the circumstances I required before I would place these trades. Everything fell into place yesterday, and I took the trades. In addition, I have decided to be a wee bit more aggressive and narrow my stoploss to less than the daily ATR when entering trades via pending orders as the momentum is with me and therefore a smaller stop is merited. This, of course, has a major impact, all things being equal, on the profitability of any price movement I get in my favour.

I am looking out for the US CPI number this afternoon. This is a clear risk event for my two trades as any indication of softness on inflation will spur talk of a Fed “pivot” and this will bolster equities and weaken the USD, which would be bad for my trades. Having said that, I think it will take more than one soft inflation number to raise hopes of a pivot significantly.

I will be back tomorrow with a brief video of the S&P500 trade closed last week for a gain of 1.9 percent.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE