"We don't rise to the level of our goals, we fall to the level of our systems" ~James Clear
I spent 12years in the military on nuclear submarines. Every day was training day. If the game day had ever come you wouldn't have read about it in the newspapers because there might not have been any newspapers left to read. A very solemn start to the morning with this one. The point is that although we had one aim for every patrol, the dangers were everywhere. So we had to train for them. Fires, hydraulic bursts, loss of control, reactor scram, the list goes on and on. Then there is the mundane managing food for an 8-week patrol when you are pushed into week 14. As an engineer, we have no shore support. We have to plan what spares we take with us make sure all our documentation is up to date etc because there is no internet no phones no email. My job is not to provide 100% capability to the Captain if that 100% has an impact on availability. There was always a compromise. If like our bodies a piece of equipment is mission-critical then we normally have two fitted. If we cannot have two then we protect the one we have, or we run it at less than maximum to increase its availability.
What's the point Chris?
Sometimes knowing that your goal is to make x% this year, but today might not be the day you make money. What if it is your system telling you today is the day you protect what you already have so that you can play from a stronger position tomorrow.
FOMC today could be a doozy or it could be a snoozy. I know which way I am leaning. You could have all kinds of plans for the next 3 years for this or that investment (goals) but on a day like today it could be your training (systems) that either keep you from mistakes or allow you to see through the fear to capitalise.
Factors: SPLV Low Beta tops the list alongside its recent bed fellow DEF Defensives. Who would have thought coming into this year QQQ Secular Growth would be up 17.82% YTD and MTUM Momentum would only be up 8.56%.
Sectors: Risk-off the factors say well I raise you XLU Utilities 1.72% on the day. Utilities topping the charts does not a sexy day make. These moves all coming on increased individual ETF volume, total market volume was down on the "correction" yesterday.
Fixed Income: Long duration all the way EDV Extended Duration and TLT 20+yr Treasury topping the list yesterday and building on 3M momentum. A big divergence on 1M here though. Is this just a use mismatch or an important duration mismatch?
FX: The usual safety currencies are here FXY Yen FXF Swiss Franc but FXB British Pound sticking its nose in here. A sneaky little short you say? CYB Chinese Yuan made all the headlines on the equity side but why does everyone have to have glamour trades. Take the HKD what about just the boring trade of USDHKD moving from 7.75 to 7.85 on the HKD peg. Why when it gets to 7.85 do people have to come out and declare the peg about to break.
Commodities: Down day UNG Natural Gas getting tagged and again this morning in the futures. SLV Silver acting more like a commodity than a precious metal?
Have fun today.