ridethepig | Positional Play in UK Equities
Updated
📌 UK Equities remain vulnerable with Brexit & Covid in play.
(Similar representation for those tracking the moves in S&P, NQ, DJIA and etc...)
(1) Firstly challenge the view that Rishi's stimulus produces an immediate effect and anything more than a spring mattress; the furlough scheme is incredibly expensive and weighing heavy despite being totally justified.
(2) Recognise the idea that we are in a dead-cat-bounce in Equities broadly and that the UK is particularly exposed to these corrections which is key in positional swings! With this said, I struggle to find positives in the UK and in doing so prevents exposure on the bid. In order to bring interest in UK Equities I would need to see the current lows swept and in the event of a no-deal Brexit then we can see as low as 3579.x.
(3) Keep to the strategy - avoid getting soft hands and closing out too early (out of fear of missing the rally) and try rather to operate with a sense of calm and tranquility.
(4) Aim for total destruction of UK assets in the coming year, sadly the individual mobility of almost every sector will be affected from the political suicide.
(5) Get used to observing the complacency and "sell on rallies"; do not let an emotional retail approach be decisive.
(6) Remember what is important for Positional swings ... we are not attacking, or even defending, but remaining nimble with the capital outflows, rather like meandering water.
Thanks as usual for keeping the feedback coming 👍 or 👎
(Similar representation for those tracking the moves in S&P, NQ, DJIA and etc...)
(1) Firstly challenge the view that Rishi's stimulus produces an immediate effect and anything more than a spring mattress; the furlough scheme is incredibly expensive and weighing heavy despite being totally justified.
(2) Recognise the idea that we are in a dead-cat-bounce in Equities broadly and that the UK is particularly exposed to these corrections which is key in positional swings! With this said, I struggle to find positives in the UK and in doing so prevents exposure on the bid. In order to bring interest in UK Equities I would need to see the current lows swept and in the event of a no-deal Brexit then we can see as low as 3579.x.
(3) Keep to the strategy - avoid getting soft hands and closing out too early (out of fear of missing the rally) and try rather to operate with a sense of calm and tranquility.
(4) Aim for total destruction of UK assets in the coming year, sadly the individual mobility of almost every sector will be affected from the political suicide.
(5) Get used to observing the complacency and "sell on rallies"; do not let an emotional retail approach be decisive.
(6) Remember what is important for Positional swings ... we are not attacking, or even defending, but remaining nimble with the capital outflows, rather like meandering water.
Thanks as usual for keeping the feedback coming 👍 or 👎
Note
A quick update here for the short-term flows:
Note
FTSE starting to look vulnerable after furlough defence is weakened:
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