INVESTORS PAY ATTENTION TO STRATEGIC VS. TACTICAL CALLS, RISK ON SENTIMENT
By Nigam Arora & Dr. Natasha Arora
Hedges
Short term hedges have become very profitable. Be prepared to reduce them if the risk on sentiment continues. We will publish a post on new hedge levels as appropriate.
Risk On Sentiment
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- Shanghai is slowly returning to normal. This caused risk on sentiment in Asia.
- The risk on sentiment from Asia moved on to Europe and then to the United States in a round robin fashion.
- The chart shows that the market has moved above the top band of the resistant/support zone.
May 17, 2022