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:

  1. Developments on China/U.S. Trade https://www.scmp.com/economy/china-economy/article/3089765/china-step-us-agriculture-purchases-under-phase-one-trade
  2. The start of EU discussions on budget https://www.politico.eu/article/eu-leaders-expect-budget-disputes-to-simmer-all-summer/
  3. China/India border dispute https://www.bbc.com/news/world-asia-53062484
  4. Pandemic on the way down or on the way up? https://www.bbc.com/news/world-us-canada-52771783
  5. Will President Trump Rally in Tulsa help narrow polls or?  https://www.270towin.com/2020-polls-biden-trump/national/

The S&P 500 has traded the past few days between 3.050 and 3.180 on the back of news flow.

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.

Brent Crude holding ad breaking higher, a test of $45 looks to be the most likely next move. Support $41.50

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.

Contact us if you are interested in receiving real time trading signals. In doubt? Check out our track record below!

TickerDate OpenedEntry PriceStopTarget PriceCurrent Price% Change
LONG Austevoll Seafood ASA (AUSS:xosl)2020/06/0276.7572.00SPREAD TRADE74.85-2.48%
SHORT Leroy Seafood Group ASA (LSG:xosl)2020/06/0256.75SPREAD TRADESPREAD TRADE54.80+3.44%

Visit our Position Tracker to look at all of our realized trades and proven track record! 
2018: 45 Trades, Hit Ratio 53,66%, Profit +35,87 %
2019:   31 Trades, Hit Ratio 45,16%, Profit +26,97%

– Mark W

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