Geo-political uncertainty ramped up over the weekend. Potential risk factors surrounding the health and election prospect of incumbent US president Donald Trump dominated the headlines. Across all asset groups, bulls are factoring in that any bad news will be addressed by a further scaling up of fiscal and monetary policy. They haven’t been wrong on that since 2008, so betting against them now could be costly.
With increased ‘risk on’ has seen precious metals given up some ground. The short-term at least looks to favour the bulls, but medium and long-term uncertainty could still come in to play. The US election is now less than one month away.
S&P 500 – last weeks kiss of the Weekly 20 SMA it could have been another ‘higher high – higher low’ buying opportunity.
Crude Oil WTI
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