No trading day is like another. That’s certainly been the case ever since we had the CPI print and BoJ intervention. What started as an RTY/NQ unwind of epic proportions has now turned to other markets where, clearly, position squaring is still ongoing. This makes for uncomfortable gyrations in anyone’s portfolio. That’s why I suggested trimming things a few weeks ago, keeping only your most beloved positions, and reducing sizes where you can. For a longer-term investor, this is just a blip; for a trader, however, it is his or her bread and butter.
Bonds trade poorly, Equity indices are not in full recovery mode, metals and energy are still feeling the cold, while only BTC outperformed on a relative basis. The JPY is continuing on a tear, invoking unwinds across EM FX for the beloved carry trade over the summer, which has now come back, biting everyone. There is no escaping. As for the JPY, Macro D called this one brilliantly in his thought-piece series on the Boj and Central Banking chess. If he’s right, we have way further to go. Read his thoughts below.
The BoJ , The Yen & Central Banking Chess
This is the third instalment of Macro D’s thought piece series. Read Part 1 and Part 2 for context. "Many men could have attained wisdom if they had not already attained it." LUCIO ANNEO SENECA I like to believe that, even if in Madame Lagarde's office
Let’s now hear from the man himself before exploring what’s flashing in my charts.
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