Trading Plan – Monday 17th January 2022: Japan firmly in no-hiking camp

Mark NugentJan 2022, Trading Plan

Trading Plan – Monday 17th January 2022: Japan firmly in no-hiking camp

Good morning.

Last week was all about Fed Chair Powell and his renomination hearing where he managed to convince senators, and the market, that he could tame inflation without crushing the US economy. All was well with rising equities until some loose talk by Fed members about aggressive anti-inflation measures managed to push equities down, ending flat on the week. Also in the US, CPI and PPI reports added more fuel to the inflation fire.

I placed two trades: Japan225 and Nasdaq, both long. They did well and were boosted by Powell, but then the Fed-speak on Thursday tanked the price and I exited both trades at breakeven. A brief video of each is in the member’s area.

This week starts with a US holiday – Martin Luther King Day, so things may be quiet. Later in the week, we have CPI readings in Germany, UK and China. The Rate and Statement in Japan followed rapidly by the meeting minutes on Thursday will confirm Japan, where inflation is well below 2 percent, as a non-rate hiking country, along with the Euro Zone, in contrast to the US and UK where multiple hikes are expected. These interest rate differentials will give trading opportunities.

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

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE