Trading Plan – Monday 31st October 2022: Eurozone inflation hits all-time high

Mark NugentOctober 2022, Trading Plan

Trading Plan – Monday 31st October 2022: Eurozone inflation hits all-time high

Good afternoon.

Last week had three days of risk-on sentiment. It’s been a wee while since I’ve seen that.

In the UK we got a new Prime Minister. UK Gilt yields calmed down. President Xi in China “won” a third term without having an election. Local markets tanked. There were unconfirmed reports (now confirmed) of the Bank of Japan selling USD to prop up the JPY. This is called currency manipulation. US big tech stocks took a bit of a pasting due to poor results and/or forecasts. Facebook fell 20 percent as Zuckerberg bet the farm on the Metaverse.

I shorted Japan225 via a pending order on Wednesday. I got out for a gain of 1.33 percent. There will be a video of this trade out on Friday.

Today kicks off with horrible inflation numbers in the Eurozone as core CPI comes in at 5.0 percent vs an expectation of 4.9 percent. The core reading has the volatile elements of fuel and food taken out. Not good. Headline inflation, that’s everything included, came in at an all-time high of 10.7 percent against an expectation of 10.2 percent. Further, growth is weakening. Q3 GDP came in at 0.2 percent. Yuk.

Highlights of the week are the Fed and Bank of England rate-setting meetings.

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

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