Bonds & Bullion Breakout But Goldman Top Trader Warns "Equity Risk/Reward Will Be Iffy" Until After The Election

After a week of heavy client engagement, Goldman Sachs head of hedge fund coverage, Tony Pasquariello, came away with two instincts for where we are:

i. Big picture, the opportunity set in macro trading is opening back up, and the hunting should be very good in the next phase of the game.  

For example, take a look at point 15 below - recent price action in the US Treasury market is cause for contemplation.

ii. Locally, equity risk/reward will be iffy until the election outcome is clear, after which -- all else equal -- the technicals to year-end should be very favorable.

For example, take a look at point 6 - the trading community has some length to reduce into the binary, then large buybacks should follow any semblance of a clean outcome.

To clarify his thinking, Pasquariello simplified everything, reducing it to short points and a few charts.