20.12.24 - Sell-off continues

Global stock market sell-off continues after attempt at a rebound in the US faded quickly yesterday turning in to more downside pressure.

Markets: Global markets and risk-assets are down. Cryptos continue to tumble together with economy sensitive commodities while safe-haven assets like US Treasuries and the Swiss Franc together with the Yen benefit.

My view: While I observed the market reaction yesterday, a fail of the rebound loomed quickly.
The Sentiment index, Fear and Greed Index by CNN, is now already on “Extreme Fear” level which usually indicates a buying signal. However, as holiday season with low liquidity in the markets approaches, I prefer to stay on the sidelines before adding more risks to my portfolio. I keep the lately opened short positions as well as the trade on volatility, tracking them closely to reduce those bets in the near term in case of market stabilization.

Become a member to access more valuable market updates like this.