Daily Alert – Thursday 16th September 2021: JPY behaving strangely

Mark NugentDaily Alert, Sept 2021

Daily Alert – Thursday 16th September 2021: JPY behaving strangely

Yesterday saw a return to risk-on sentiment. Equities and the US 10-Year yield rose. Strangely, the JPY continued its upwards trajectory, keeping me in my AUDJPY short. If anyone in the commentariat knows why the JPY is rising despite the sentiment, they are not letting on. This happens sometimes. A lot of the rationale in financial markets is post-event and simplistic. There are many factors of different weightings that move assets and total clarity is impossible to attain. Just as well really. If we knew everything there would be no trading.

The one that got away from me was oil. WTI had a stellar day yesterday after fooling me into getting out of my long trade at breakeven the day before. The fear of missing out is strong but I won’t allow that to pull me into a second long at a price that is already over 4 percent up on the week. That would be dumb. It’s one thing to miss a profit for a breakeven position. Quite another to turn a breakeven position into a loss by chasing a missed opportunity.

As I said yesterday, I placed a pending order on S&P500 long. It has been triggered and is doing quite well so far.

There is little on what’s left of this week’s economic calendar to move the markets.

Tomorrow, I will prepare brief videos of this week’s closed trades.

Steve and I will be back on Monday with your Trading Plan for Week 38.

Have a good weekend when it comes.

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