I was about to start a blog about the next batch of questions, but found myself researching quite deeply into certain ideas and market dynamics that I thought we would talk about first before continuing.
Some of you had been asking for more trade specific posts and I thought this would make for something interesting.
You can’t understand this landscape without money flows.
A trade idea, for me, starts much further back than the chart, at the macro, the big picture.
Where are people most long?
Where are people most short?
→ Where is the positioning?
What do people see as an easy long?
What do people see as obviously dead?
→ Where is sentiment best and worst?
→ And finally: what is nobody looking at at all?
So, where is the crowd very long, sentiment euphoric, and capital piling into the same corner?
Frankly pretty easy for all to know…
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