Hello everyone,
I hope you’ve had a good week, albeit a shorter one here in the UK with the May bank holiday kicking off the long weekend on Friday. In and amongst the headlines regarding the virus and relaxation of social restrictions, the market has been relatively calm. Notably, further upside in equities has been capped, and the US indices have been treading water (down slightly) ahead of the Initial Jobless Claims report due later today. This should come as no surprise to Trading Club members in light of the assessment of our Equity Checklist in the past couple of weekly videos.
The same is true for gold, with the precious metal in something of a consolidation around $1,700.
With our Checklist for gold displaying a positive score, the odds are stacked in favour of the current consolidation being resolved to the upside once a catalyst emerges (which in the very short term may be a shocking jobs report, or, looking out further, a ’second wave’ of infections as lockdown restrictions are eased). Either way, this is a temporary pause and our process is signalling to us a positive bias.
There has been greater volatility to be capitalised on in FX as we highlighted in this week’s Trading Club video. This follows a great period last month where we correctly identified a number of high conviction setups using our various currency Checklists. In case you haven’t seen our latest video with the current setups, be sure to check it out!
Given the shorter trading week, I think it best to keep it brief here today and conclude by reiterating the importance of focusing on the bigger picture reflected in our Checklists. As the main area of interest for many investors is the stock market, I would urge people to be mindful of the very clear score we have in our Equity Checklist this month. Ahead of the jobs report, other imminent data and a precarious reopening of the world’s key economies, the convergence of fundamentals and technicals that we have identified present a compelling setup for those with a longer term view. Don't forget, the eye of the storm often feels calm.
Time will tell how this all plays out, but rest assured that our Checklists and weekly Trading Club analysis will ensure that you are best prepared for the evolution in markets.
If you would like to join us for our full analysis including new insights each week, or learn from the ground up with online tuition from Lex in our MDT online course, take a look at it here.
