Monetary Matters with Jack Farley U.S. Dollar Is Getting Crowded | “Market Wizard” Jason Shapiro on Currencies, Stocks, and Bonds Under Trump Administration
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Nov 13, 2024 
Jason Shapiro, a veteran trader and founder of the Crowded Market Report, shares his contrarian insights on today's financial markets. He argues that the crowded long dollar trade may pave the way for a Euro rally. Shapiro highlights that traders could be too short on oil and natural gas, while maintaining a neutral stance on equities due to short-term risks. Their conversation also dives into the complexities of market reactions to political changes and the impacts on currencies and commodities.
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Market Timing Difficulty
- Determining market highs and lows is difficult, especially during periods of political uncertainty.
- It's challenging to predict market reactions to bullish news, especially before a new administration takes office.
Crowded Markets and Confirmation
- Crowded long markets can persist, so simply identifying crowdedness isn't enough to fade a trade.
- Look for market confirmation through failures on good news to identify potential turning points.
Finding Opportunities
- Focus on finding opportunities in different asset classes, rather than solely focusing on headline trades.
- Profitable trades can be found in less-crowded areas like currencies and energies.