Gold net specs have trimmed the long during gold's consolidation. Imagine having to explain to the boss you shaved off the big long and gold breaks up aggressively from here....
SPX put in a hammer candle early Tuesday morning. Needless to say, we are at very oversold levels. Note previous hammer/inverted hammer candles led to the SPX bouncing. These type of candles post aggressive moves should be observed closely. A confirmation up, and it could be the signal for a short term bounce.
There are several worrying signs about a tanking US economy, and words like recession and stagflation are back in vogue. At the same time, the DOGE boys are gaining momentum with a "no pain no gain" mantra. The question market participants must ask is - what indicators does Trump look at and care about?
Don't think you're so special if you're sitting on a lot of losers
Markets are generally oversold and the all-important CTA community has de-risked, but certain aspects of sentiment in general, gross leverage among hedge funds in particular, make the overall tactical backdrop messy and absolutely not a clear-cut signal. Sign up to Premium to get updated on the latest.
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