The Downside is Still the Dominant Trend

I know that many are waiting for a Santa Claus rally this year. They may get something that resembles it, but if you are a trader there is one thing that you may need to focus on more than that potential rally. Hedge like your life depended on it. The next batch of economic data may not reflect a market that is ready to rally on to All Time Highs. In fact it may show that the global economy is weakening and two shades away from failing. So traders should use any upside as an opportunity to go short into 2023. By all means if you feel like there may be upside going into 2023, my advice would be to put a dollar toward the long side for ever 4 you put toward the short.