Trader Sees “Reckless Amount Of Confidence”, Warns ‘Watch China’

by Tyler Durden
ZeroHedge.com
Dec 13, 2016

We realize that it’s the holiday season and markets are thin, but they sure are interesting. Full of complexities. Or is it contradictions? As Bloomberg’s Richard Breslow notes, so many assets, economic story lines and geopolitical risks can go either way. Yet traders seem to be set on their current leaps of faith and happy to ignore the rest as next year’s problem.

Despite all the debatable points there’s a remarkable, some would argue reckless, amount of confidence being espoused. People are sure that things are setting up quite clearly for us to be about to enter the year of the [fill in the blank]. How we close this year will have a lot of influence on market psychology as positions are rebuilt and P/Ls started anew come January.

One favorite, no surprise, is the dollar is the place to be. Rates, safe haven, fiscal stimulus. USD/JPY is motoring and EUR/USD will have to test lower. Yet the minds of traders work in mysterious ways.

Monday we made a multi-month high in USD/JPY and then had a sloppy close. Failure came the screams. Mostly from people who don’t have the trade. A month of fundamental analysis went out the window. Until the pair re-took 115 Tuesday. >Sloppy closes should be a chapter heading when they write the history of this year and are not as informative as they were in the past.

The Rest…HERE

This entry was posted on Tuesday, December 13th, 2016 at 1:23 pm and is filed under China, Conspiracy, Corruption, Economics. You can follow any responses to this entry through the RSS 2.0 feed.