Quoting Blankfein " Investors should always prepare for the most extreme risk scenario because it will happen..."
well then what could be the most extreme scenario?
w/o underestimating the huge impact of POMO in saving the day each time the mkt tries to fade we can notice that:
1)There are high chances that we are on the head of a potential H&S, that could be very similar to the 2011 action
2)Like in 2011 shrinking volumes are not buying the rally as well as commercials www.finviz.com/...res_charts.ashx?t=ES
3)NEG DIV are in place
4)Nikkei down 1,000 points in less than 5 days
5)Notes highly correlated with Gold (at record net short values) are about to b/o the neck of H&S inv
Conclusions:
In each case caution. hedges and stops always in
well then what could be the most extreme scenario?
w/o underestimating the huge impact of POMO in saving the day each time the mkt tries to fade we can notice that:
1)There are high chances that we are on the head of a potential H&S, that could be very similar to the 2011 action
2)Like in 2011 shrinking volumes are not buying the rally as well as commercials www.finviz.com/...res_charts.ashx?t=ES
3)NEG DIV are in place
4)Nikkei down 1,000 points in less than 5 days
5)Notes highly correlated with Gold (at record net short values) are about to b/o the neck of H&S inv
Conclusions:
In each case caution. hedges and stops always in