Trading Plan – Tuesday 26th May 2020: Risk-on Monday, equities rising

Mark NugentMay 2020, Trading Plan

Trading Plan – Tuesday 26th May 2020 – Risk-on Monday, equities rising

Last Week

Events and Calendar
US-China war of words continues. The economic calendar may have had some “green” results, i.e. beating expectation, but the results themselves in an absolute sense were mostly terrible.

Risk Sentiment
Monday was strongly risk-on and saw most of the US equity index price action.

Asset Classes
All global equity indices were up over the week, apart from the FTSE100.
GOLD moved little and held at the prior week’s high.
Oil maintained its rally into a fourth week.
For most currencies it was a tale of two halves. Monday to Wednesday saw a consistent movement in one direction, with Thursday and Friday seeing a reversal. Over the whole week, the JPY fell and the commodity currencies rose, but on the daily chart these moves were delivered in the first three days of the week before the reversal kicked in. The USD fell in line with the JPY. The EUR was up, driven by the JPY and USD. The GBP was flat.

Trades

T31 GOLD long opened and closed on Monday, breakeven.
T32 AUDJPY long opened on Monday and closed on Tuesday for +1.83%.

This Week

The calendar is sparse and the US and UK are on holiday on Monday. As of 6pm BST Monday, we are risk-on and, as you would expect, equities are rising, the JPY and USD are falling (just) and the commodity currencies are rising (again, just).

I will be having a close look at going long on either the S&P500 or Japan225 later this evening. As the US is on holiday today, there may be some catch-up tomorrow when they return, giving a further boost to the US equity indices.

Happy trading.

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