I hope you had another good one this week! It's been 'quite a year’ for investors already, and particularly our Trading Club members who were positioned for some great trades in the S&P 500 and Canadian Dollar this month (and plenty more to come, I hope!).
In keeping with the Trading Club Replay videos we introduced last week, I want to highlight even more great trades that we have been generating with our Checklist process in recent weeks. Just to recap, and for anyone who didn’t see my post last week, we are providing free access to one of our full Trading Club videos each week to replay the action and show you how we were positioning before the trades played out in global markets!
WATCH IT HERE:
Here is a quick summary of what I presented in the video, which was recorded 1st November applying the Monthly Checklist Report prepared 28th October;
- Equities had just closed beneath their 200-day moving average (although further downside felt probable, and our Market Risk Checklist was skewed slightly negative, it showed improvement from -2 previously).
- Our Business Cycle Checklist remained strongly positive at +4.5
- Our Equity Market Checklist had returned to positive territory +2, highlighting the potential for a bounce in stocks to short term traders (whilst longer term “buy and hold” investors might be looking to remain in cash, anticipating further weakness beyond this short term bounce).
- Having seen heavy selling in the previous month, the S&P 500 rallied 150 points over the next week, before giving back gains to end the month flat.
- USD Checklist was positive, DXY 96.70 at the time of recording, ended the month around 97.50
- Highlighted GBP as a potential long at 1.2772, which rallied towards a high of 1.3175 later in the month.
- Anticipated continued weakness in the Canadian Dollar (USDCAD 1.3118), which fell as much as 2% versus the Greenback in November (eventually bottoming in late December around 1.37).
And in commodities;
- Gold Checklist score was 0, suggesting a range bound trading environment in November.
- The Crude Oil Checklist remained strongly negative at -4.5, WTI was at $66, and we'd expect a continuation lower (the futures ended the month at $50)
The Trading Club members get first access to our exclusive analysis in real time each week along with our Checklist Report produced a month in advance of the action. If you would like to become a member, please click here or contact our team for more information. And as always, if you would like to learn how to trade with Lex in our Million Dollar Traders course, you can also find details for that on our website (contact our team for a special discount as a reader of this blog).