Trading Plan – Monday 29th March 2021: Suez Canal Re-Opens; Greed Kills Another Hedge Fund

Mark NugentMarch 2021, Trading Plan

Trading Plan – Monday 29th March 2021: Suez Canal Re-Opens; Greed Kills Another Hedge Fund

It is a short week this week with Good Friday on, er, Friday and also month and quarter end on Wednesday.

The big boat jamming the Suez Canal has been moved and the canal is now clear for shipping. That’s good. The media are saying that the oil price is dropping as a consequence but it is not. The oil price has shown little or no reaction at all to the entire situation.

Archegos, a major hedge fund, suffered some margin calls on Friday, meaning they had to front cash to shore up souring positions they hold in the equity markets. This led to the emergency sale of USD20 billion of equities on Friday in a rush to find the cash. You cannot do that without crashing the price. It looks like some firms, Nomura and Credit Suisse among them, will take a hit on money they lent to Archegos to allow the building of the huge positions that are now going sour. Nomura are talking of their hit being to the tune of USD2 billion. Unalloyed greed, all around.

Risk sentiment is indecisive as of 5pm BST. It might be a quiet week.

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

Late on Friday I closed Trade 16 (EURUSD short) for a gain of 1.69% and Trade 17 (Japan225 long) for a gain of 2.20%. Together with my previously reported Nasdaq long (breakeven) and WTI long (-1%) that gives total profit for the week of 2.95%. Brief videos of each trade are available for members.

I’ll be back on Wednesday.

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