Deceleration, 13th Sep 2022

🖼 Daily Technical Picture 📈

➤ Equity markets leapt higher towards the 4200 resistance zone. The upward acceleration is decelerating as seen by the size of the candle/bars since the progression from the higher low. This is either because of less buyers or more incoming sellers. The VIX also increased by a small amount.

➤ These are subtle hints of change in behaviour that we should take note. Whether this has to do with profit taking or imminent important economic data, we will know after the fact.

➤ I added short positions in SPX500 and DJ30 whilst still holding DAX and EUSTX50 long positions. As a result, my exposure has switched to net-short of -40%. This is an overall low but conflicted conviction level. The shorts are high conviction, the longs low. The maximum exposure is +/- 200%, the level of highest conviction.

➤ Conclusion: I am hedged but with a downward bias. Hedged positions are rare. It points to different equity market structures in different regions. This normally resolves itself and re-sync overtime due to their high correlations.