Recorded on the morning of 14th August 2019, the day after President Trump decided to postpone new trade tariffs on Chinese goods until the 15th of December – just in time for Americans to buy their Christmas presents – Chris Beauchamp explains the combination of indices running out of steam as evidenced in the charts.
Adding that ‘’it’s easy to let a negative scenario run away from you’’ he moves on to remind us which markets are the more vulnerable when risk aversion kicks in; here he highlights the Australian dollar.
Even more fascination are the numbers of IG clients who are long versus those short. This is the case for all the major indices, currencies and commodities he covers, with one glaring – and surprising to me – single exception: the US’s S&P 500 stock index, where 64 per cent are short. It reminded me of Jesse Livermore’s propensity to sell rather than buy. He claimed that as a market professional, where one could see where retail flow was moving, the obvious option was to take the opposite side.
Click here to watch.