Market On Close, Tuesday 6 August
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Whoa!
by Alex King
We moved on from panic selling to institution-only dip buying (because retail brokerages were closed! - which didn’t stop JPM proclaiming victory over dumb retail today, a special kind of victim-shaming) and now to seasickness-inducing whipsaw. Today if you had protective stop orders placed at highs or lows then you probably got taken out and then left in the dust. Thankyou Big Money. (If you were hedged and don’t use stops then nothing much happened on the day, another advantage of hedging).
My own approach here remains (1) keep scanning for systemic problems to see if this selloff gets momentum (2) keep exposure low whilst the market works out if it’s off to new highs or going to check on the basement (3) keep it simple, common stocks more attractive than complex instruments right now - just in case the (sorry can’t mention it for fear of looking like every other “I just learned what a carry trade is” commentator) c***y t—e issues roil any adjacent structures.
So let’s just take a look at how reality sits right now.
Let’s Get To Work
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