August 5th, 2024

As I sit back here on vacation in Lake Burton, I couldn’t help but take a peek at what the markets were doing. By now, you’ve heard about the yen carry trade being the culprit of the sell-off. It’s that and more; there are various factors contributing to the current market situation.

Sitting back and watching the markets, they seem to be in quite a tailspin. In my experience, when we face major events like the carry trade unwind along with other contributing factors, the only thing that slows us down is a limit down during the day. That’s down 7% in ES. The market needs that pause; until it happens, I don’t think any support is safe.

Sometimes you just need a limit down for things to resettle and for the market to find buyers.

I wish I could give you all more guidance during this crazy period, but I will leave you with this: just trade small. The market can’t hurt you if you’re trading small. Realize that your strategy is secondary right now and that much bigger events are happening that supersede short-term strategies.

Take a breath, slow things down. The best days I’ve had during these times of craziness have been because I’ve been able to slow things down while things are speeding up.

Wishing you all a fantastic day.

Cheers, DELI