Movement ≠ Progress

JC Parets
November 6, 2020

We're winding down a long week across the globe and what's clear is that there's been a lot of movement.

The median weekly price range in the International Indexes we track on a local currency basis is 6.24%, with the highest being nearly 13%.

Click on table to enlarge view. 

And we're seeing similar volatility across asset classes.

But not all moves are created equal.

If everything's moving, we need a way to identify which moves are relevant and which are not.

We don't care about things that are moving up and down a lot, but not making directional progress for our trading timeframe.

We care about the things that are moving a lot in the direction of their underlying trend, both on an absolute and relative basis.

Big moves in either direction stir up fear/greed and make us want to act immediately, but with a day left in the week, we're going to continue exercising patience rather than make any knee-jerk changes to our views.

This weekend after the dust settles we'll take stock of all of this week's moves and identify which are relevant to us.

At that point, we'll let you know what new trades/portfolio adjustments we need to make. And we'll be sure to let you know.

As always, thanks for reading and please let us know if you have any questions!

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