Traders Wipsawed, The Tape Doesn’t Lie; Stock Prices Will Go Higher Before Lower:

Rareview Macro LogoBelow courtesy of Rareview Macro;  MarketsMuse Editor caveat: Below is excerpt of independent opinion courtesy of contributor, this should not be considered a recommendation to buy or sell any type of securities.

Portfolio Update

The short position in the S&P 500 was covered and a long position was initiated yesterday at 1705. Our global equity beta position now consists of long US S&P 500, German DAX and Japan Nikkei. Into 1705, the strategy demonstrated the relative outperformance of our global beta thesis.

Also, with a US Government resolution now looking closer, a second unit of the long Mexico Peso against short Japanese Yen (MXN/JPY) position was added.

Both updates were sent real time via Twitter. Details are below for reference.

We are now outright directionally long on risk assets and our exposure is at the highest level of the year.  Neither is common in our portfolio, but we believe it is right at this time. We also remain confident that Gold will be significantly lower by the end of the year.

Note the US Dollar relief rally has started. This is most visible in Euro, Swiss Franc and Gold. Our view is that Dollar strength will be the shortest lived relative to the Euro. Today’s move lower in Gold is most welcome and upon Government resolution one has to be open to 1200 being tested on the downside.

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