Daily Alert – Tuesday 27th July 2021: US equity indices make new all-time highs
Good morning traders.
As predicted, it is quiet in the run up to the Fed and month end. Yesterday was moderately risk-on and the US equity indices all managed to make new all-time highs. So much for the pandemic. Remember kids, equities always go up. (This is not financial advice).
The Chinese Communist Party (CCP) continue their crackdown on large online Chinese tech companies who are allegedly challenging the government’s authority. It’s as if the CCP are actually totalitarians. The Hang Seng Tech Index drops 17%. Investors beware.
I had a wee look at the Japan225 last night as there was some buying pressure towards the end of the day. In the end I didn’t trade it. I get very cautious at month end, especially when it’s been a good month. I try to preserve my trading psychology by not ending the month with a losing trade. I notice right now the index is dropping as Bank of Japan (BoJ) Chair Kuroda is speaking. Is this the first time in history that the BoJ has moved the markets? Any sustained drop just makes a long trade all the more enticing.
See you tomorrow.
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