Trading Plan – Monday 10th January 2022: Equities remain down after hawkish Fed

Mark NugentJan 2022, Trading Plan

Trading Plan – Monday 10th January 2022: Equities remain down after hawkish Fed

Good morning.

Last week was dominated by the Fed minutes which showed unexpected hawkishness. The market is now pricing in three or four 25 basis point hikes this year. Equities fell and the USD and bond yields rose, all as expected. At the close of the week, equities had yet to recover.

This week is all about inflation. Again. We have three data points in the US alone. Wednesday sees CPI itself. Thursday sees PPI, or Producer Price Index, a measure of what it’s costing producers to produce their stuff. Finally, on Friday, we have Retail Sales which is a forward-looking, early warning signal for inflation and future CPI reports.

As always, in this week’s video, I go through my trading themes for the week.

We’ll be back tomorrow.

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