Daily Alert – Wednesday 19th May 2021: Equities, WTI and GBP all take a dip
A combination of inflation fears, cryptocurrency collapse and the run-up to the Fed Minutes tonight has driven equity indices down for the third consecutive day in the US. Most of the rest of the world has followed the same broad pattern.
However, the Japan225 did have an up day yesterday and I managed to trade it successfully for a gain of around 2%. It was essentially a replica of last week’s Trade 30. I notice the price today is back at support for the second time this week. Surely it won’t give me a third bite at the cherry?
WTI is dropping as positive noises come out of the Iran nuclear deal talks. As I said on Monday, I am looking for a pullback before going long. This is it.
The GBP index has hit a high not seen since April 2018. (It is only you, dear VIP Club members, who have access to our GBP index. This is not a standard, free tool you can find on the interwebs). The GBP is a wee bit weak today but it looks nicely set up for a further rise. I may well trade this, coupled with the USD, which is trending down.
Look out for the Fed minutes tonight at 7pm UK time.
In summary, equities WTI and the GBP are all looking good for going long – as always the devil is in the detail of trade execution. I talk about this in the member’s video.
I will be back on Friday.
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