Busy Week Ahead! (Read time 90 sec)
The first 6 months of 2020 has been, to put it mildly, eventful!
Over the weekend the news of the pandemic came from everywhere:
Leading U.S. immunologist Fauci says U.S. facing a “serious problem”. More than 30,000 new cases daily!
Texas Governor worried about major flareup
The health officials in the U.S. worried if halting the spread of virus is possible.
China ramps up lockdowns
Australia looking into possible lockdowns
Emerging markets are unable to cope with developments.
This is a busy week in the markets with a great deal of economic data due to be reported. Weakness is expected and I am not sure how much of the market focus will be on the releases as the pandemic situation will determine the strength of the global economy as authorities try to re-open in a safe and responsible manner.
Resistance at 45.50 close of gap, $70
Support $35/$37 and $25
Crude is less obvious as to what we can expect. Supply destruction and OPEC+ discipline, versus re opening/pandemic developments. Where we draw our conclusion on gold from factors we think we have a handle on, Oil is, for us, more difficult to have a strong view on.
Resistance 98.20, 98.90 and 100
Support 96.50, 95.60 and 94.90
We feel as though the market has become bearish the greenback due to the developments on fiscal, monetary and political drivers. We are on the side that as long as there is uncertainty around global growth and pandemic developments, the U.S. will attract capital flows and safe haven flows for the next few months.
As we near the election and the possible uncertainty, this may well change.
|Ticker||Date Opened||Entry Price||Stop||Target Price||Current Price||% Change|
|LONG Austevoll Seafood ASA (AUSS:xosl)||2020/06/02||76.75||72.00||SPREAD TRADE||76.65||-0.13%|
|SHORT Leroy Seafood Group ASA (LSG:xosl)||2020/06/02||56.75||SPREAD TRADE||SPREAD TRADE||56.60||+0.26%|
|SHORT US500||2020/06/22||3095||3095 (WAS 3165)||2950||3037||+1.87%|
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