29th August 2022
➤ Prices resolved in a catastrophic failure for the Bulls. The expected re-test higher ended abruptly. The huge sell-off comes after Fed voweled to fight inflation and crush it back to 2%. IMO, this can only mean they see inflation is "sticky" and has already seeped into the psyche of market participants. If not addressed, this will set in a period of stagflation.
➤ I moved to -40% exposure with shorts on DAX and UK100. This is a low exposure. The maximum exposure is +/- 200%, the level of highest conviction.
➤ Unfortunately, prices moved aggressively downward just like in June before I was able to be positioned appropriately. I will not be chasing this move as the risk/return will not be in my favour.
➤ For the Bulls, it could be argued we are still in a wave 4 corrective move in Elliott Wave terms. This will be negated if the sell-off continues.
➤ Conclusion: Bears have control, can they push their advantage?
➤ Prices resolved in a catastrophic failure for the Bulls. The expected re-test higher ended abruptly. The huge sell-off comes after Fed voweled to fight inflation and crush it back to 2%. IMO, this can only mean they see inflation is "sticky" and has already seeped into the psyche of market participants. If not addressed, this will set in a period of stagflation.
➤ I moved to -40% exposure with shorts on DAX and UK100. This is a low exposure. The maximum exposure is +/- 200%, the level of highest conviction.
➤ Unfortunately, prices moved aggressively downward just like in June before I was able to be positioned appropriately. I will not be chasing this move as the risk/return will not be in my favour.
➤ For the Bulls, it could be argued we are still in a wave 4 corrective move in Elliott Wave terms. This will be negated if the sell-off continues.
➤ Conclusion: Bears have control, can they push their advantage?
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.