Daily Alert – Tuesday 25th October 2022: We’re still paying the moron premium

Mark NugentDaily Alert, October 2022

Daily Alert – Tuesday 25th October 2022: We’re still paying the moron premium

Good morning.

In the UK, Rishi Sunak is due to become Prime Minister later today. As Bloomberg says on its front page, his reward for predicting Liz Truss’ trashing of the economy is to clear up the mess. No good deed goes unpunished.

The GBP was flat and UK Gilt yields are falling again (good). However, we have some way to go to return to the pre-Truss position. We are still paying what the Financial Times calls a “moron premium”. Well, that’s the printable version of what it’s called. This premium is the extra you must pay because the markets think there’s a moron in charge. It lingers long after the departure of said moron.

I am watching equities closely. I feel they are due a move down. Both the S&P500 and the Japan225 are at very nice resistance levels.

I’ll be back tomorrow.

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