RBC Explains Why The Market Is Dumping, Adds “This Is Not The Big Short”… Yet

Thursday, January 12, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jan 12, 2017

Having yesterday revealed what he believes is the single biggest risk to the buyside in general, and hedge funds in particular, in today’s market (the answer, for those who missed it, is the strong dollar suddenly turning weak, as it is continues to do today), here is the follow-up note from RBC’s Charlie McElliggott, explaining where we stand now.

* * *

Where We Stand

As laid-out in yesterday’s Big Picture note “THE SINGLE LARGEST MACRO INPUT RISK TO THE BUYSIDE,” as asymmetrically ‘long US Dollar’ positioning ‘tips over,’ so too should we expect a drawdown on consensual macro and thematic-equity trades.

Tactical cases are everywhere for an extension / acceleration of mean-reversion trades, largely based-upon positioning excess and reversing technicals.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter