Thursday , 21 January 2021

MBS RECAP: Apparently, Markets are Guaranteed to Continue Moving in the Same Direction

By Matthew Graham

Posted To: MBS Commentary

Good news! It seems that–thanks to some magical domino effect having to do with oil–that this week’s market movements can’t do anything else but continue in the same direction. Guaranteed! Well, at least that’s the takeaway from most of the analysis out there. Apparently, this is just the tip of the iceberg where leveraged funds with exposure to the energy sector are being hunted down and blasted by short-sellers. I couldn’t really follow the logic as to the next domino, but it had everything! Emerging markets, blue chip stocks, bond yields, you name it. All going inevitably lower! Is this for real? No. Sorry. When too many people start making the same bets, they end up being the side that loses. It’s, as yet, undetermined how close we are to that tipping point though…(read more)

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Via:: MBS RECAP: Apparently, Markets are Guaranteed to Continue Moving in the Same Direction

      

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