Trading Plan – Monday 21st March 2022: Risk-on sentiment rewards simple trading

Mark NugentMarch 2022, Trading Plan

Trading Plan – Monday 21st March 2022: Risk-on sentiment rewards simple trading

Good morning.

Last week saw a focus on central banks. The Fed raised interest rates by 25 basis-points, as expected, and promised six more hikes this year. Markets saw the Fed as hawkish. Next, we had the Bank of England on Thursday. Again, a predicted 25 basis-point hike was delivered, but not by the expected unanimity. There was one dissenter, who voted for no hike at all. Friday saw the Bank of Japan keeping the rate unchanged, as expected. Despite unusually low inflation in Japan, currently at 0.6% per annum, the bank did allude to the Ukrainian situation offering inflation risks to the upside. Markets saw the BoJ as dovish.

Last week delivered three solid days of risk-on sentiment. On Tuesday, I went long on Japan225 and NZDJPY. Both trades were simple, obvious and performed very well, netting an almost ten percent gain in total. These, and two further trades from the prior week, are available in the member’s area.

This week is light on the economic calendar and Ukraine is sure to drive market sentiment.

We’ll be back tomorrow.

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