Positioning Moves vs Trading Moves

Positioning Moves vs Trading Moves

Positioning Moves:

Fundamental expectations have changed and all the markets need to adjust. Big Trend Days. Maybe multiple Trend Days.

Identify with: Market Stress, Trend Odds and Fundamental news

Trading Moves:

Individual market expectations have changed. Or not. May be Trend Days or Rangebound Days.

Identify with: Trend Odds, Market Stress and Equity Trend Indicator. Fundamental news is lacking

So the First Question of Preparation becomes:

Is tomorrow a Positioning Day or a Trading Day?

And preparation becomes:

What would the catalyst for a Positioning Day be?

And everything becomes very Bayesian –

At least until the First Question of Trading:

Is today a Trend Day or a Rangebound Day?

 

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