January Has Been Characterized By Reversion Trades Posted by: otterwood 1 day ago Aside from the large “reflation trade” moves today the market consolidation since December has been characterized by reversion trades. The following chart from Strategas Research Partners shows the January performance of the best performing stocks in Q4. As can be seen the best stocks in Q4 are practically flat while the worst performing stocks are up roughly 2.8% so far. by Otterwood Capital Management
bonds retraced and heading back down again... gold retraced losses and looks like its headed back down again.. equities consolidate up...dollar retraced gains and looks to be possibly turning with the correlations in other macro markets.
That's how I do it. I just keep betting that someday everything will be normal. A lot of boredom and then bam (you've got to be quick because it doesn't last long) normalcy! Then it's back to the usual crazy world.