Trading Video: S&P 500, Yen Crosses and EURUSD Ideal Fear Trades
• Evidence that a systemic change in sentiment is taking place is materializing far and wide
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Has the market finally turned? In an unusual week-ending move, the S&P 500 and Dow Jones Industrial Average broke trends that have come to symbolize the bullish ranks' enduring optimism...or their effective complacency. Alone, this would signal a threatening correction to one asset type in one region. However, US equities were merely the hold out to a deteriorating backdrop of sentiment measured in many other market arenas (volatility, FX, high-yield, etc). Full scale risk aversion would catalyze a situation made unstable by leverage, participation and the level of exposure; but can we call this the turn? What setups are better suited to a waver and which to full-scale risk aversion? We discuss this in the weekend Trading Video.
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