Daily Alert – Thursday 11th November 2021: Inflation shock roils markets

Mark NugentDaily Alert, Nov 2021

Daily Alert – Thursday 11th November 2021: Inflation shock roils markets

Good morning traders.

US inflation came in yesterday at the highest rate since 1990. The USD shot up. US 2-year and 10-year yields leapt upwards. Equity indices fell. GOLD, a long-time hedge against inflation, broke up and out of a channel it had occupied for 104 trading days.

Strangely, despite all these moves being predictable based on the CPI result, almost all of them took a few hours after the 1330pm GMT CPI announcement to begin. This made trading difficult and in fact I placed no trades.

Nevertheless, I see equities dipping and that will give future opportunity. I now have increased certainty of a strong USD. I also note the GBP index breaking out to the downside from the channel it has occupied on the W1 chart for 38 weeks. This is all grist to the mill and will give new opportunities soon.

It has been a frustrating week with little to no trading opportunity. However, I can see setups forming in front of my eyes for next week, maybe even sooner (I’m looking at you, equities).

There will be no brief trade videos tomorrow as there have been no trades.

I’ll be back on Monday with your Trading Plan for week 46.

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