Trading Plan – Monday 26th October 2020: Covid concerns drive sentiment

Mark NugentDaily Alert, Oct 2020

Trading Plan – Monday 26th October 2020: Covid concerns drive sentiment

Most global equity indices have started the week with a gap down at the open, followed by a move further down. Risk sentiment is negative at the time of writing (1300 GMT). Sentiment is being driven by record Covid cases in France, Italy and the US and by the declaration of a state of emergency in Spain. It’s all a bit gloomy.

So far the JPY and commodity currencies are not reacting to the sentiment but when they do I will be looking to buy the JPY in what has become, over the last few months, a repeatedly profitable trading approach for me.

Equities remain at or near all-time highs. GOLD and WTI have yet to wake up.

The Brexit trade negotiations are continuing this week until at least Wednesday and the GBP is up today on this news.

As always, in the VIP Club member’s video I go through my trading themes for the week and how sentiment will, as always, play a critical role.

Have a great week and I’ll be back on Wednesday.

You can watch the video in the VIP Club members area HERE