Daily Alert – Thursday 27th February 2020: Risk-on sentiment doesn’t last, waiting for an equities rally
Yesterday was a funny day. We started risk-off, then went risk-on, and finally risk-off again. The risk-off sentiment has spilled over into today. This makes trading very difficult.
I said yesterday there could be an equity rally before the weekend due to profit taking by those who have shorted the equity indices. Well it hasn’t happened yet. In addition, with Microsoft lowering its revenue guidance due to COVID-19, coupled with virus fears, the downwards pressure on equity prices might be too great to allow any profit taking to affect prices. However, I will be looking for signs of an equity index rally as we get towards tonight’s close.
Have a great weekend when it comes and I’ll be back on Monday.
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