The last two Friday Speedruns were called “A Crisis of Faith” and “Wobbling” and I guess now we have finally cracked. The important question now is whether we are near the end of a correction, or the start of a bear market. The 200-day moving averages are gone and so this is a good time to keep an open mind. Pavlov’s Dogs buy every dip and if you have an unlimited time horizon and no stop loss: Sure. But if you are a trader or an investor with risk management considerations, it’s worth considering how a procyclical momentum driven market can turn to a countercyclical wipeout. The macro story this week was ... (full story)