Biden Bull Market

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By James Helliwell, Chief Investment Strategist

Hello traders,

I hope you’ve all had a good week.

There has been a general sense of optimism sweeping the markets with the President Biden's inauguration signalling the end of Donald Trump’s period in charge.

This has been reflected in equities and other risk markets, to which gold (a traditional 'safe haven’ bet) is diametrically opposed. The latter was the focus of our last couple of updates, where we highlighted the negative score that our Checklist presented as we began the New Year. Here’s a reminder of how we arrived at a score of -2:

Gold was on a good run at the time, with price at a multi-week high nearing $1950 following a very strong rally from around $1750 just a month before (a move that our Checklist also caught, on the long side). Here’s how the chart looked point-in-time.


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Whilst it may have seemed a little bold, the conviction in our process enabled us to take the setup and profit from the equally sharp sell-off that began shortly after we updated our scores for January. Furthermore, with the 'risk-on’ sentiment seen amongst investors this week, a second opportunity to sell presented itself on an overbought hourly RSI earlier this week with price around $1875. You can see the move below $1840 which has since followed and seen a reversal in the RSI to oversold.

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Here’s our Market Risk Checklist, which also correctly anticipated the trading dynamic seen in recent weeks. There are numerous other examples confirming this bias amongst the other Checklists in our Monthly Report, as I have analysed and presented for Trading Club members in our weekly videos.

Of course, it goes without saying that we’ve seen a great move in stocks on the back of this, and the +3 we saw at the beginning of the month.

Here’s the S&P 500, which has rallied 200 points in the meantime… (a benchmark which I have comfortably beaten in my personal trading account on eToro).

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If you would like to learn more about our methods, and join me for more analysis in real-time, then check out our MDT course and Trading Club pages where you can preview everything that we cover. And in the meantime, why not head over to our YouTube Channel for our latest FREE videos which I will be bringing to you each week in 2021!

This week I looked at my top 10 stock setups for your watchlist, and how I have beaten the market so far in 2021. As we’re not charging anything for these videos, it would be great if you could support the channel by leaving a comment and subscribing!

You can watch this week’s video here: https://www.youtube.com/watch?v=0GPdP6SwuN0

Have a great weekend,

James

Disclaimer: For educational purposes only. Even though we do our best to provide reliable data, you should not trade based on this information. For more information go to www.milliondollartraders.com

© Copyright 2020 Lex van Dam Financial Education. Further distribution prohibited.


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