Our Urgent Market Update reviews important real-time market developments and their impact on high-probability trading opportunities. Today, we have a good look at the importance of patience and how we were able to benefit from the high-probability sell trades post-bullish pullback.
To explain this in more detail, we started off looking at last week’s massive upside surprise in US job numbers and explained what we thought was the reason for such a strong market reaction to the upside. Then, over the course of this week, markets largely rallied until market fundamentals, sentiment and technicals all pivoted on the news that US inflation actually came in higher than expected.
This is a problem for the markets because it is likely to mean the Fed will keep rates higher for longer, something which these markets seem to want to ignore. Further downside is expected in the short term as a result until something significant changes.
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