Pig Slaughter Season

There are times when you need to trade like a pig. With these macro conditions, now is not that time.

In those roaring crypto bull markets we've all come to know, bravery is more important than brains. But, in periods like these, traders who are patient get rewarded.

When the market inevitably improves, you can get back to making money instead of picking up pennies to recover from big drawdowns by avoiding the mental hurdle of overtrading.

As we've said before, one of the big characteristics that often differentiates good traders from mediocre ones is the ability to sit out when necessary.

There's that old adage that there are only three short periods each year to make money. Or consider the classic Paul Tudor Jones quote that “markets trend only about 15 percent of the time; the rest of the time they move sideways.”

We can't reiterate this enough; there's a huge difference between looking for a setup and seeing one.

If you go into the market with preconceived notions about how things should be instead of seeing them for how they really are, you might as well go take a punt on the dish lickers.

Follow the money flow.

I think with this all in mind we continue our neutral approach. We laid it all out here.

Correlations to weak equities remain highly elevated. We'd like for those to dislocate before getting overly optimistic in the near term.

When it comes time to put money back on the table again, it'll be obvious. Otherwise, we'll continue being patient.