In this week’s Macro Insight I discussed…
US bond yields moved lower even as retail sales, jobless claims and business sentiment all came in higher than expectations. Is all the good news already priced in?
VIX staged a bounce after April options expiry after reaching low levels, however, realised remains low so spike may be short lived.
One of my favourite sign of market exhaustion, bearish momentum divergences are appearing across a bunch of major indices. Taking profit on tactical longs or stock replacement makes sense here.
Fairly quiet on the macro this week. We do also have more earning releases from the likes of JNJ, Netflix, Amex and Daimler.
As yields have retreated, the DXY has traded down toward 91, which is key support for the uptrend since the start of 2021. EURGBP short into ECB makes sense to us as European yields will likely be talked down on Thursday.
Gold broke above key resistance at 1765, taking it into neutral territory. We covered shorts and wait for cues from the dollar and real yields. Copper has resumed its uptrend after holding above 50d MA and on the back of strong demand fundamentals as outlined by GS in a recent report. Positioning also seems cleaner in Copper suggesting the rally could have legs.
Filmed on on Tuesday 20th April 2021.
Chapters:
00:00 Introduction
02:41 Yields lower despite strong data
05:48 VIX bounces off oversold levels
08:12 Bearish momentum divergences
12:17 Coming up this week
13:18 Dollar uptrend at risk
16:26 Gold and Copper
Want to try before you buy?
Options Insight offers a NO OBLIGATION 7 day free trial to give you access to our live and interactive “MACRO INSIGHT” trading call hosted by veteran options trader Imran Lakha.
Our trading call takes place at 2pm (GMT+1) over Zoom to participants around the world with a copy of the recording post event for you to view at your leisure.
Like what you see?
Join our exclusive trading community for just £49 per month or £499 for a whole year saving you more than 15%. Members benefits include: Access to our live and interactive weekly “MACRO INSIGHT” trading call hosted by veteran options trader Imran Lakha, monthly market reports written by Imran sent straight to your inbox and annual members will also receive: Huge discounts on our training courses including 20% off “Intro to Options” and 10% off “Options for Asset Management”
Within the “MACRO INSIGHT” trading call, Imran will walk you through his macro watchlist and what’s on his radar in the current market environment. He will discuss the dominant market moving narratives and share any trades or setups he is watching or even trading himself. You will get an incredible insight into how to express your macro views with actionable trades and professional risk management. This unique, behind the scene perspective from an experienced practitioner will help you immensely towards your goal of trading success.
FOLLOW THIS LINK TO JOIN TODAY: https://www.options-insight.com/macro-insight-plan
DISCLAIMER OPTIONS INSIGHT CONTENT is presented for educational purposes only. The information presented by OPTIONS INSIGHT should NOT be construed as investment advice. Always consult a licensed investment professional before making important investment decisions. The opinions expressed by OPTIONS INSIGHT are those of its founder Imran Lakha who shall NOT be liable for losses resulting from investment decisions based on information or viewpoints presented by Options Insight.