Trading Plan – 1st February 2021: Retail traders boost silver…mistake?

Mark NugentFeb 2021, Trading Plan

Trading Plan – 1st February 2021: Retail traders boost silver…mistake?

The week starts with silver being boosted by retail traders in a continuation of last week’s organised market manipulation. However, last week the focus was on GameStop, the most shorted stock in history. Silver is a different story. Traders are net long and the silver market is about 20 times larger than the market cap of GameStop. The silver price has already stabilised. It is tempting to trade silver on the inevitable way back down as another example of the classic reversal play that worked last week for the S&P500 long.

Elsewhere we have a military coup in Myanmar and continuing anti-Putin protests across Russia. The markets could not care less.

The UK hits a vaccination milestone – all care homes have been visited by the jabbers. The markets do care and the GBP rises.

Ursula von der Leyen seems to have untwisted her knickers over the weekend and the vaccine conversation has calmed after the shameful manoeuvrings of last week.

Risk sentiment is indecisive as of noon, GMT. Major risk events this week include the Bank of England’s Super Thursday where a view will be taken on the potential usefulness of negative interest rates. A “yes” on that will surely puncture the GBP.

I’ll be back on Wednesday.

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