A week in a glance: numerous records and our trading plans

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The past week will be remembered by a number of historical records. For example, the pound reached its lowest level in modern history (since 1985). The dollar showed the maximum two-week gains since 1992, stock markets during a month have lost about 30% etc.

Central banks and governments tried to keep up with the records of financial markets. The Fed cut the rate to 0% and launched a quantitative easing program by 700 billion. And this despite the fact that the Fed continues to inject hundreds of billions of dollar liquidity into the repo market, while Trump plans to spend a trillion on supporting the economy during the crisis.

Last week, the Bank of England urgently cuts rates to 0.1% and added another £200 billion to its quantitative easing program, bringing it to 750 billion.

The ECB has announced a quantitative easing program for 750 billion euros.

In general, it is hard to determine the leader so far (US, EU or GB), because the numbers are all outrageous.

Trillions of extra money did not stop the growth of the US dollar in the foreign exchange market and at the same time did not help the US stock market. In this regard, we continue to recommend to sell in the US stock market. Minus 30% - is not a full burst of the bubble. So there is a potential for further decline, especially when you consider that since this week about a quarter of the US economy is in strict quarantine.

At the same time we would not rush with purchases of the dollar. Current prices, in our opinion, are a good opportunity for sales. Earlier or later dollar should incorporate the sharp increase in money supply. In addition, the yield of US treasuries confidently went below 1%, which makes investing in them less attractive to investors. Fears for the US economy also should have their word.

So, this week we will sell the dollar. First of all, against the British pound (which, in our opinion, suffered undeservedly) and the Japanese yen (safe-haven asset).

Our other positions include medium-term oil purchases. Yes, here and now there is no reason for oil growth, but in the future we believe that oil is doomed to growth. Recall our plan for the WTI: first purchases from $ 30, than addition from $ 25 and another addition from $ 20.

Sales of EURGBP upon the growth of the pair are also relevant.

Gold purchases from current prices in the medium term and on intraday descents are our active deals this week.

Otherwise, we will actively trade based on Ranger signals. Assets very well rebound from daily extremes (at 100, 200 and even 300 points, as in the case of the pound last week), so it all comes down to determining daily lows / highs and active reverse trading.