SPX500 Sentiment Pause - Will Risk Off Return?

It is very helpful as a trader to split Market scenarios into two categories; risk on, and risk off.

Risk on environments are times when risk is ON for traders. They want to invest, and take risks. The SPX, for example, is one of these assets as there are some stocks which have higher inherent risk based on their history.

Risk off environments are when we see fear flood in and risk is OFF. Investments that require high risk are taken away and the money is plugged into safe haven assets, like JPY/CHF or cash / fixed income assets.

We have just seen the two be played out in the same couple of weeks. This has stalled on a few words out the fed calming the seas.

However, nothing can stop one bad print coming it and it trashing Markets, nor can the BOJ easily stop their situation with the yen and unwindining.

I would not be surprised if markets turn over again, so be careful on any sizes and entries.

ノート

Price action not pretty. No slam in longs.