Trading Plan – Monday 17th August 2020: GS raises S&P500 forecast to 3,600

Mark NugentAug 2020, Trading Plan

Trading Plan – Monday 17th August 2020: GS raises S&P500 forecast to 3,600

Risk sentiment is currently indecisive, which is not unusual at this time (1500 BST) on a Monday. Plus, we are in the middle of summer.

Goldman Sachs have just upped their forecast for the S&P500. They now expect the index to hit 3,600 by year end, up from 3,000. If this comes to pass, that move represents around 10 to 12 times risk for us (if we trade with a stoploss of around half the ATR.). It is also in line with my bias for equities (long) based on fundamentals and central bank activity.

We have a relatively sparse economic calendar this week. Wednesday will see the Fed’s FOMC Meeting Minutes which often causes a pause in price action in the run up to the announcement (1900 BST) followed by no reaction whatsoever after the announcement. Maybe we are in for a quiet week.

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

Happy trading. I’ll be back on Wednesday for a mid-week look at the markets.

VIP Club members can watch the video HERE