Hello again,
As predicted yesterday mkt went up during Asia and fell at the start of Europe. then it went back up on a piece of semi fake news regarding Germany before ultimately falling throughout the US session. so what's next ?
I think the most important headlines will be
- TRUMP Shitshow where he essentially put everything on Pence's shoulders suggesting that the situation is NOT under control
- First case of Beer virus of untraceable (so far) origin in the west coast
- Yellen said this sort of choc can lead us straight into a recession
- Her comment seems to confirm the losses in the credit market which usually doesn't move significantly unless there is a true risk to fundamentals
- Following on what i wrote about last time, the Bank of Korea surprised everyone by refusing to cut tonight, their justification? their board essentially said that what we need is a vaccine not a liquidity injection.
- If the US sellside highlights this and suggest Clarida could adopt the same argument to refuse to do what the market wants him to do
I think this mix is extremely bearish for the nasdaq, especially the last point as that would destroy the Nasdaq high flyers. the problem is that shorting here, so close to the 200 SMA which will be supported by CTAs and other systematic traders is not the best of entries.
i've personally taken a 1/2 size position in /NQ with the intention of adding if we go back up. most of the action I'm expecting would happen in European & US Time zones.
Submitted February 26, 2020 at 08:37PM by GreedySpeculator https://ift.tt/2Vn221z
