Trading Plan – Monday 24th January 2022: Russia and the Fed will drive sentiment this week

Mark NugentDaily Alert, Jan 2022

Trading Plan – Monday 24th January 2022: Russia and the Fed will drive sentiment this week

Good morning.

Last week was all about bond yields rising, poor earnings growth in US equities, the markets fearing a Fed over-reaction to inflation and the situation at the Ukrainian border. Equities dropped and the Nasdaq entered so-called correction territory. The markets tried to rally on Thursday, but the sheer weight of negative factors forced another down day. I placed no trades.

This week kicks off with the US embassy in Kyiv ordering family members to return home. Equities have stabilised, so far. We have the Fed on Wednesday. No interest rate hike is expected, but markets are looking for confirmation of a rate hike in March, preferably of 25 basis points rather than 50 basis points. In the UK PM Johnson faces the results of the investigation into the drinks party shambles.

The biggest risk facing us is clearly the Russia/Ukraine situation. Should Russia cross the border, expect to see equities drop and oil rise as risk sentiment turns distinctly sour.

As always, in the member’s video I go into more detail on my trading themes for this week.

We’ll be back tomorrow.

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