Trading Plan – Tuesday 14th April 2020: OPEC+ fail to balance the oil market, oil moving down

Mark NugentApril 2020, Trading Plan

Trading Plan – Tuesday 14th April 2020: OPEC+ fail to balance the oil market, oil moving down

Last Week

Events and Calendar
The Fed introduced another massive USD2.3 trillion package of loans to support the economy in an unscheduled announcement. Bernie Sanders quit the presidential race on Wednesday. These factors, together with endless talking from the US about the Covid-19 pandemic peaking, drove sentiment and US equity prices higher.

WTI dropped by 7% on Thursday as the OPEC+ bunfight failed to reach agreement. Eventually an agreement was obtained on Sunday. The cut remains insufficient to balance the market.

Risk Sentiment
Moderately risk-on for Monday to Wednesday before going Indecisive on Thursday. Markets were closed on Friday.

Asset Classes
US equities technically entered a bull market after rising on the week, making the total rise over the last 3 weeks greater than 20%.
GOLD approached its recent 7-year high.
WTI was flat on the week, despite the OPEC+ saga.
On FX, the JPY and USD fell and the commodity currencies rose, all in line with sentiment.

This Week

I look at the fallout from the OPEC+ meeting and what it means for oil prices. As GOLD hits an 8-year high today, I consider how to trade the precious metal. I am also looking at USD and JPY paired with the commodity currencies and their reaction to sentiment.

It’s a sparse economic calendar this week and so far the market is not showing any strong sentiment, positive or negative.

Happy trading.

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