Pictures Bigger Than Words (Read time 1 min, without links)
As we tick closer to the Quadruple Witching Hour(https://www.investopedia.com/terms/q/quadruplewitching.asp) this afternoon in the U.S. the charts are setting up for some interesting moves into the weekend.
The past couple of days has seen equities chop back and forth in a range driven by negative news on global politics and pandemic developments, against some more positive economic numbers (from lower levels in March/April) and global re opening.
Things to watch for this weekend:
- Developments on China/U.S. Trade https://www.scmp.com/economy/china-economy/article/3089765/china-step-us-agriculture-purchases-under-phase-one-trade
- The start of EU discussions on budget https://www.politico.eu/article/eu-leaders-expect-budget-disputes-to-simmer-all-summer/
- China/India border dispute https://www.bbc.com/news/world-asia-53062484
- Pandemic on the way down or on the way up? https://www.bbc.com/news/world-us-canada-52771783
- Will President Trump Rally in Tulsa help narrow polls or? https://www.270towin.com/2020-polls-biden-trump/national/
We want to be short, as we think the market has gotten ahead of itself, but the power of the Fed and global counterparts, buying everything they can get hands on is a strong deterrent. We are in the middle of the range. We await a chance to sell, patiently.
Gold is holding key levels and Goldman Sachs has a report out looking for gold to test the old highs above $1,900 in the months to come.
We continue to like buying dip or a break above resistance. $1,745 and $1,700 our key levels.
USD Index, putting in a bottom? There are very strong arguments for the USD rally, as well as a strong case that it should get hit hard. We think range trading is the most likely outcome in the weeks to come.
|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||74.85||-2.48%|
|SHORT Leroy Seafood Group ASA (LSG:xosl)||2020/06/02||56.75||SPREAD TRADE||SPREAD TRADE||54.80||+3.44%|
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