Trade Entry - Update
Revising stops higher on European equity longs
A bit of housekeeping.
I entered a number of long equity positions on 25/03/2026 due to my belief that Trump was seeking an off-ramp from the Iran conflict, bullish positioning had been washed out, and key markets had moved down into major support zones.
I closed the Nasdaq 100 long on May 14th post a strong run into overbought territory and have since added to the long in Copper Miners.
Today I’m revising up stops on the Europe ex UK and European Banks Equity ETF positions that were entered in March.
I still like these areas of the equity market:
Structurally, I see underpinning from European fiscal support, higher nominal growth, and a solid lending environment for banks, continuing to drive the bull trend in these assets.
Cyclically, a likely ongoing decline in the inflation impulse (energy prices), improvement in the growth impulse, and a resulting reduction in ECB expectations should support these markets.
We’re also now starting to see sell-side banks begin to upgrade European equities.
As a result, I’m aiming to let these run for a while.
Post their breakout of recent consolidations to new highs, I’m revising the initial stop loss levels up to breakeven.
Leaving the stops relatively wide given there remains plenty of scope for volatility in the next six months.
Europe ex UK Equity ETF:
European Banks ETF:
Good luck out there.
Iain
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