Breakdown, 3rd October 2022
🖼 Daily Technical Picture 📈
➤ I was looking for market participants to do some window dressing on Friday to make a horrible September end on a positive note. Instead, we saw window selling. Ending with an exclamation mark to show how bad the month was for long only investors. It was a bad end for myself as well. I gave back pretty much all the profits from earlier in the month.
➤ The silver lining was that the VIX hardly budged. This was enough for me to add long SPX500 and DJ30 positions. The obvious risk is increasing exposure when the SPX500 has broken the yearly low. I am keenly aware. However, a systematic trading process only works if we stick to the rules over the long-run. Making subjective decisions based on emotions will only introduce inconsistency.
➤ There are heightened levels of risk. UK pension system is in crisis due to bond yield upheaval. There is a rumour that a large financial entity is having liquidity issues. All this brings back memories of the Lehman collapse and the onset of the Global Financial Crisis.
➤ My current exposure is +100% composed of all 5 indices I trade, SPX500, DJ30, Nasdaq, STOXX50 and DAX. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: New month, new beginnings...
➤ I was looking for market participants to do some window dressing on Friday to make a horrible September end on a positive note. Instead, we saw window selling. Ending with an exclamation mark to show how bad the month was for long only investors. It was a bad end for myself as well. I gave back pretty much all the profits from earlier in the month.
➤ The silver lining was that the VIX hardly budged. This was enough for me to add long SPX500 and DJ30 positions. The obvious risk is increasing exposure when the SPX500 has broken the yearly low. I am keenly aware. However, a systematic trading process only works if we stick to the rules over the long-run. Making subjective decisions based on emotions will only introduce inconsistency.
➤ There are heightened levels of risk. UK pension system is in crisis due to bond yield upheaval. There is a rumour that a large financial entity is having liquidity issues. All this brings back memories of the Lehman collapse and the onset of the Global Financial Crisis.
➤ My current exposure is +100% composed of all 5 indices I trade, SPX500, DJ30, Nasdaq, STOXX50 and DAX. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: New month, new beginnings...
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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