Market On Open, Monday 5 August
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The Only Post On The Internet Today That Won’t Mention "The Carry Trade"
by Alex King
Nothing to say really; panic selling afoot. It will continue or it won’t. If you’re an Inner Circle subscriber then you’ll have seen extensive trade disclosure alerts and commentary in chat in recent weeks about the current market weakness. If you are hedged and/or sat with a substantial cash allocation, you can remain calm. If you are long or levered long, this is a more challenging time. I don’t think it’s January 2022 and I do think there will be a local low and another move up, but I don’t know if that’s today or tomorrow or next week or next month. As always I find it best to look at what is actually happening with price rather than reading all the reasons why Experts A Thru Z think that price is doing what it is doing. When securities prices move, I like to measure those moves and place the movement under the lens of a pattern recognition system to see what may happen next. This I find relaxing; listening to attention-seeking types' fear (bulls), euphoria (bears) or triumphalism (permabears) I find stressful and unhelpful, so I don’t bother!
So let’s just take a look at how reality sits right now.
Let’s Get To Work
As always in our market notes, we deal with long- and short-term charts covering the main US equity indices - that’s the S&P500, Nasdaq-100, Dow Jones-30, and the Russell 2000 - plus bonds, volatility, oil, and key sector ETFs. You can use these daily notes to help you navigate long-term investments, and/or to help you action short-term trading. Any paid-tier subscription here gets you these notes every trading day.