Trade: Closing ES Long
A good run
Hello everyone,
We have had huge success in the ES long thus far:
Trades: Long ES
I have laid out the tensions for the macro situation and my view on equities: Trades/Week Ahead: Rates, GDP and Inflation Print (macro context for this week) Asset Class Report: Equities (I broke down the R:R of equities) Interest Rate Report: Strategy and Trades
The time has come to derisk and wait. I opened the trade here and am closing the trade here (see yellow lines):
I laid out the positioning unwind here. Here is the deal: we don’t have a macro driver for the selling right now but we could price a much higher premium in positioning. This means I am closing the trade here and will likely reopen it as the risk reward improves.
Equity / ES Update: Positioning Unwind
The signals in the equity market are incredibly multifaceted and more complicated than OHLC levels in ES. For example, watching the correlation of assets to equities or watching the TYPE of sectors that are rallying will tell you what technical levels can’t.
Keep a close eye out because I will likely reopen the position. For now, I am neutral on equities until positioning unwinds more. The next trades will be shared exclusively with paid subscribers. I appreciate all the support and I hope the research is adding a lot of value to you.
This is global macro
It was a great trade!