The recovery trade - stopped out, what's next?
Was this past sell off and the violent bounce just a wash out of weak "recovery trade" longs?
We have seen all classical reflation/recovery trades do the same thing; stop people out, creating huge frustration.
Copper, still below the long term trend, but what a round trip.
Oil has gone from puke to must have, bouncing right on the trend line.Russell saw another perfect bounce on range lows.The only reflation trade that has done absolutely nothing is bonds.The US 10 year has not moved (close to close) over past 7-8 sessions.What asset do you trust?The dead cat bounce in oil and other stuff we have been pointing out (and ) played out well, but chasing this stuff here is a late trade. Time to move on.
We have seen all classical reflation/recovery trades do the same thing; stop people out, creating huge frustration.
Copper, still below the long term trend, but what a round trip.
Oil has gone from puke to must have, bouncing right on the trend line.Russell saw another perfect bounce on range lows.The only reflation trade that has done absolutely nothing is bonds.The US 10 year has not moved (close to close) over past 7-8 sessions.What asset do you trust?The dead cat bounce in oil and other stuff we have been pointing out (and ) played out well, but chasing this stuff here is a late trade. Time to move on.
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