In the financial world, the smart money is sending a clear signal – a warning that could unleash a storm in the markets. As the yield curve prepares to ascend once again, insiders have been offloading assets like never before. The stage is set for the Dollar to embark on a wild journey, with a critical juncture expected around March 11, coinciding with the end of the Buy the F***ing Dip (BTFP) era and the exhaustion of Reverse Repo.
Bloomberg reports that liquidity concerns are paramount for traders, according to a JPMorgan Chase & Co. electronic trading survey. Volatile markets are anticipated to be the predominant daily challenge for the second consecutive year, topping the list of institutional traders’ worries. Access to liquidity looms as the most significant concern regarding market structure, eclipsing anxieties related to regulatory changes and data costs.
Zerohedge amplifies the concerns, pointing out a flashing signal not seen since the Black Monday Crash in 1987. Citi, in response to this market anomaly, issues a stern warning: Nasdaq short bets have been entirely cleared. Investor positioning in US technology stocks is overwhelmingly bullish, with wagers on declines in Nasdaq 100 futures completely erased. Citigroup strategists, led by Chris Montagu, caution that this large consensus positioning poses a significant risk that could potentially magnify any market downturn.
As the smart money adjusts its sails, market participants brace themselves for potential turbulence ahead, with eyes on the looming surge of the Dollar and the delicate balance of market structures. Investors are urged to remain vigilant, as the echoes of past market upheavals resonate, signaling that caution may be the wisest strategy in the face of these impending uncertainties.
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BEWARE: Smart money has been selling like never before pic.twitter.com/hWkaPO0JdF
— Game of Trades (@GameofTrades_) February 6, 2024
The Dollar is about to go crazy when the yield curve starts rising again. It'll happen right when Reverse Repo runs out & BTFP ends on March 11.
Pretend to be shocked when they tell you "No one could have seen this coming" including Jerome Powell 😜
t.co/4rfUQt8LbE t.co/TDdTFR6qxo pic.twitter.com/suBfd6qv2z— Financelot (@FinanceLancelot) February 6, 2024
www.zerohedge.com/markets/market-just-flashed-biggest-divergence-black-monday-crash-1987