Daily Alert – Thursday 7th October 2021: Gas, Biden and ECB raise the mood

Mark NugentDaily Alert, Oct 2021

Daily Alert – Thursday 7th October 2021: Gas, Biden and ECB raise the mood

Hello traders.

It was a day of two halves yesterday. We started solidly risk-off before ending more positively. Three primary factors drove the change. Firstly, President Putin offered to ease Europe’s gas crisis by shipping more of the stuff. Secondly, US President Biden is due to meet China’s President Xi Jinping before the end of the year, raising the prospect of better relations. Finally, the European Central Bank was said to be assessing a new bond-buying programme to ease market turmoil when they get around to tapering the current emergency measure. It looks like more QE, walks like more QE, but I look forward to Christine Lagarde explaining how it definitely is NOT more QE.

These issues raised the mood of the market. Equities rose. Oil fell (more gas is bad for oil). I bet OPEC are happy they didn’t decide to increase production on Monday. The Euro fell (QE depresses currencies).

I went long on the S&P500 at last night’s close. It is almost 1x risk in the money as I write.

I’ll be back tomorrow with brief videos of all closed trades and your Performance Report for September and year-to-date.

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