Limit down in a lot of Asian markets today as the unwind continues. Clearly things are getting uglier and uglier under the hood.
As we have been discussing, even if we have not seen a lot of panic from retail, the indiscriminate selling continues. Naturally, we don’t know, but the way things are trading, it really looks like someone big is being forced to de-risk hard and is in the process of a big unwind. I’ll leave the speculation as to who this could be to others but suffice to say, this is not Johnny-One-Lot getting margin called.
You know when the Fed and other CBs are taking multiple actions and the ECB has to co-ordinate another program at mid-night on a Wednesday… things are not orderly under the hood.
One of the key things to watch next is the USD. We have been discussing and mapping out scenarios for a while now but again, a strong dollar will break a lot more stuff. Pay attention to possible action from the FED or Treasury as other CBs have also started to hint at having to intervene here too.
Don’t forget that it’s time to get greedy when others are fearful. despite all the things that are going on , this too shall pass and it’s time to start look at longer-term opportunities, trades and portfolio construction too.
Sorry for the lack of longer written posts on the blog recently but things have just been too busy. Naturally, charts will continue to be posted as well as complementary access to some to the premium content.
I can’t stress this enough; this is a time to not only look for opportunity but to also internalize what is happening and learn. Please do not waste this unique opportunity if you have the luxury of following all this action unwind live.
Furthermore, and I hate to sound like I am plugging the premium content but unless you understand what is going on and have been able to successfully navigate the action, imho it makes a lot more sense to let someone guide you and use this opportunity to learn and grow as a trader rather than continuing to shoot from the hip. Most of the time a little investment in your own development can really go a long way and make things far less complicated than they should be.
If you know someone that is struggling, please pass this on. It’s very frustrating to see people continue to email in with horror stories or looking for a way out just because they are/were unwilling to invest in their own education.
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Billionaire investor Stanley Druckenmiller discusses his economic and market outlook for 2020, the direction of monetary policy, and the upcoming U.S. election. He speaks exclusively with Bloomberg’s Erik Schatzker in New York > Watch Full Interview.