Crypto "knew" something, right?
Wednesday 1st May - Daily Equity Update
That is now our perception, right? Something happened then something happened therefore it knew or it caused it.
Lets flip it on its head the reason why Middle East unrest didn’t “matter” (not a moral view just a market view) earlier in the year was because nothing happened in the market.
The reason why attacks mattered in April was because we had a huge run in the market. This caused on a vol-adjusted basis 300 of the 500 SPX stocks to be within a 1% move of breaking trend and momentum. Vol adjusted i.e. some stocks only a -0.7% for others a -5% move once we correct it was ~1% move.
The market doing so well caused itself to need only a small nudge.
I know I have flogged this horse but I hope it highlights how important this is to this process, and why I don’t listen to the “news”.
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