Trading Plan – Monday 30th May 2022: Short week starts well

Mark NugentMay 2022, Trading Plan

Trading Plan – Monday 30th May 2022: Short week starts well

Good morning.

Last week began with ECB President Christine Lagarde once again signalling interest rate hikes are coming, probably in July. The Fed FOMC Meeting Minutes on Wednesday were seen as being slightly (and relatively) dovish. No more talk of 75 basis-point hikes. Sentiment was changeable until Thursday and Friday when we saw two whole consecutive days of risk-on sentiment. Yippee. I was tempted into S&P500 long, via a pending order. It was triggered on Friday, and I rode it to the close for a gain of around 1.6 percent. What a relief.

The positive risk sentiment has rolled over into this week (so far). Concerns about the possibility of lockdowns in China and the havoc that would wreak on global supply chains eased as the number of cases in China hit a three-month low. In Beijing, cases dropped to 12 from a pandemical 21 last week. Someone needs to have a chat with these muppets.

Please note the US is on holiday today, so any positive sentiment-driven moves may run out of steam later in the afternoon.

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

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