Daily Alert – Wednesday 3rd February 2021: Silver’s reversal delivers significant profit

Mark NugentDaily Alert, Feb 2021

Trading Plan – Wednesday 3rd February 2021: Silver’s reversal delivers significant profit

As trailed on Monday, I entered a SILVER short on Monday, planning on a reversal of the retail trader-inspired move up. The retail traders were trying to squeeze the shorts of the big boys. The problem was there were no big boys…there was no net short position on SILVER. The price fell as the WallStreetBets reddit lost its nerve and I bagged a 5.4% gain. Nice.

I also went long on S&P500 on Monday which has just closed for around 2%. This trading lark is better than working.

We have had risk-on sentiment on Monday followed by indecision yesterday and today. Equities have finally run out of steam. WTI is pushing up as OPEC hint at further production cuts. Currencies are incoherent with all the usual correlations absent.

There is a big risk event tomorrow. The Bank of England’s decision on the utility of negative interest rates. A “yes” to that could puncture the GBP.

I’ll be back on Friday.

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