Daily Alert – Wednesday 26th October 2022: Big tech sour the risk-on mood

Mark NugentDaily Alert, October 2022

Daily Alert – Wednesday 26th October 2022: Big tech sour the risk-on mood

Good morning.

Yesterday was another solid day of risk-on sentiment. New UK Prime Minister Sunak assembled his cabinet and got on the phone to the global great and the good, and also Nicola Sturgeon. There were some sour notes from Microsoft, Alphabet (Google) and Texas Instruments later in the day as they reported disappointing results and/or forecasts.

Equities continued to rise. I will wait and sell this rally. The old sentiment-driven AUDJPY trade almost tempted me, but there has been excessive volatility recently and we are not quite sure what the Bank of Japan is doing in terms of currency manipulation (selling foreign reserves of USD, buying JPY).

Early this morning UK-time we’ve seen hot CPI numbers from Australia. There is little else on the economic calendar for today. We are seeing a small gap down on equities in today’s daily candle. Is this the start of a move down?

I’ll be back tomorrow.

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