Good morning and welcome to episode 524 of ‘Talking Bull’. In this video/podcast we cover the main headlines and what to expect from the day ahead.
We take a technical look at key markets that are likely to be impacted by today’s events. Also, we participate in a ‘Gun to the head’ challenge where each of us calls a live trade. These will expire at 9pm tonight and we will keep track of the progress over time.
We hope you enjoy it!
Steve was stopped out on NASDAQ. Joe was offside 0.23R on GBPUSD.
We have included an illustration based on a £1000 account. This will follow the combined return of our morning trades by risking 1% of the trading capital per trade. The 1% risk is a variable monetary amount and will rise and fall based on the success of the calls.
We are currently up 84.70% collectively since we began recording Talking Bull on the 30th October 2019.
Federal Reserve Chair Jerome Powell sought to reassure lawmakers and investors on Tuesday that the central bank can pull off the tricky task of bringing down four-decade high inflation without damaging the U.S. economy. The S&P 500 halted a five-day slide, the Nasdaq 100 outperformed major benchmarks and the dollar fell. Euro Stoxx 50 futures are rising this morning.
France registered a new record number of daily Covid-19 infections, as the omicron variant continued its fast-paced spread across the country. Still, the euro area’s second-largest economic recovery is proving almost immune to disruption from the wave of infections and is set to get extra support as supply constraints start to ease. That’s a source of reassurance for policy makers who have said European economies will be increasingly resilient to problems on the public health front.
Investments tied to cryptocurrencies and digital assets are by far the biggest threats facing individual investors in 2022, according to an annual survey of securities regulators by the North American Securities Administrators Association. Separately, Kim Kardashian and Floyd Mayweather Jr. were sued for allegedly scamming investors in a cryptocurrency called EthereumMax.
Conservative MPs are watching Boris Johnson stonewall over allegations of pandemic rule-breaking parties at his office with horror — and a degree of gallows humor. Opposition politicians have called for the U.K. leader’s resignation over the latest claims, but it is the reaction of his own Tories that will be of most concern to the prime minister — one Conservative MP described the mood as sulfurous, while another predicted the end of the road for Johnson. It’s a significant moment of peril at the worst possible time for Johnson, who had hoped to begin 2022 with a reset.
Markets continue to be buffeted by expectations around US interest rates, and with Jerome Powell appearing in hawkish mood before US politicians yesterday there was no shortage of further discussion about the potential policy path. However, after another choppy session indices were able to rebound, providing hope that perhaps the selling can be maintained for now. US CPI lands today however, so it is clear that the excitement is not over yet. Chinese CPI overnight grew at a slower pace, up 1.5% YoY rather than the expected 1.7%. Aside from US price data, weekly crude oil inventories are the only event of note.
1.30pm – US CPI (December): prices to rise 6.9% YoY and 0.4% MoM. Markets to watch: USD crosses
3.30pm – US EIA crude oil inventories (w/e 7 January): stockpiles fell by 2.1 million barrels in the previous week. Markets to watch: Brent, WTI
Gun to head challenge – Update
Today’s trade idea
Have a great week everyone.