The Traderszone Network

Published in TZ Latest News 14 August, 2014 by The TZ Newswire Staff

Conditioned To Catch The Falling Knife

The numbers out last night were once again largely on the weak side of disappointing, with very little reaction and even less of an intuitive reaction. As Bloomberg’s Richard Breslow writes, this is the downside of everyone having the same positions. Simply put, we’ve been trained to catch the falling knife by the CBs, one of those trading strategies that will work until it doesn’t and when the knife slips you will really have a taper tantrum.

Via Bloomberg’s Trader’s Notes…

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