4 NOTABLE LEGAL OPINIONS OF U.S. SUPREME COURT PICK: AMY CONEY BARRETT

This is important because Amy Coney Barrett will sit on the Supreme Court for decades, long after Trump is gone and shaping constitutional policies that will define America and what it stands for. Amy Coney Barrett’s induction will tilt the Supreme Court towards a Conservative majority, hence her decisions will carry more weight than usual as it will more often than not be a “swing vote”.

1/TrackRecord's Market Musings😎: Fed Puts Ball Firmly In Congress’ Court

22nd Sep, POWELL: “Many of our programs rely on emergency lending powers that require the support of the Treasury Department and are available only in unusual circumstances.” 2/23rd Sep, POWELL: “Have done basically all of the things that we can think of”

TrackRecord's Market Musings😎: 5 Risk Factors We See Affecting Markets Leading Up To Nov 3rd Elections.

Thread Below ⬇️ 1⃣: China Blacklists: China is threatening to blacklist US companies in retaliation for Huawei, Tiktok and Wechat bans. For now, China seems to be waiting till the next President is confirmed...

1/TrackRecord's Observation of the Day 💭: Winter Is Coming

We are on the precipice of a perfect confluence of forces that will result in unprecedented volatility in the coming months. 2/As winter is literally coming, there is a good chance Covid-19 will come back with a vengeance, can governments afford the economic brunt of another lockdown?

1/The death of Justice Ruth Bader Ginsburg less than two months before the presidential election tosses one more lit match into the tinderbox of national politics in 2020:

https://twitter.com/voxdotcom/status/1307869370706784257

2/It will surely inflame a deeply polarised country already riven by a deadly pandemic, a steep economic downturn, and civil unrest in its major cities.

In Washington, the vacancy fight could ratchet up tensions to a level unseen even in the tumultuous Trump era.

1/TrackRecord's Market Observation of the Day 💭: Quad Witching Friday

Quadruple witching occurs on the third Friday of the month of every quarter (highest volatility occurs in the last hour of trading between 3:00pm - 4:00pm EST) , in March, June, September, and December. 2/It refers to the simultaneous expiration of single-stock options, single-stock futures, and stock-index options and stock-index futures which are settled at 4:00 p.m. Eastern Time.

EVENTS TO WATCH TODAY: 4 Sept 2020

1) U.S. Nonfarm Payrolls:

The consensus is for the US economy to have added another 1.4 million jobs in August, which would push the unemployment rate down to 9.8%, from 10.2% previously. That would still leave the unemployment rate just beneath its peak from the 2008 financial crisis, so even though this is a step in the right direction, there are still miles to go before the labour market truly recovers.

1/TrackRecord's Market Observation of the Day 💭: Does Fundamentals or Positioning Drive Prices?

There’s hardly been any significant headlines in the last few days, but markets have been moving quite actively. 2/This is the best time to try to figure out what the speculators and investors are positioned in the market.

Every sell-off in the Nasdaq has been brief, and the recovery, swift. This implies a market that is not fully invested and that dip-buyers are still strongly in control

TrackRecord's Market Observation of the Day 💭: Getting “Trumped”

1/Trump is a media and situational extraordinaire, turning compromising situations into winning propositions for himself. 2/He did it in the last election and Nov 3, 2020 is setting up to be another tight showdown should the riots and civil unrest in America continues. There is a gradual shift in the electorate sentiment, with Trump cutting into the lead of Democratic rival, Joe Biden.

Here are 7 Questions our traders ask themselves before placing a trade: 1) What are the reasons for having this trade?

1)
TrackRecord's Market Musings Twitter Thread:
A Paradigm Shift, What Changed?

Old Mandate: Traditionally, the Fed has had a dual mandate (see attached picture) of maintaining stable prices and reaching maximum sustainable employment. 2)
In its new mandate, the Fed will not react anxiously when inflation runs hot, but rather allow it to stay above 2% for a sustained period of time to compensate for past periods when actual inflation was below the 2% target. This is known as an “average inflation target.”

Speculation is mounting that Powell will use the annual Jackson Hole conference to announce a revamp of how monetary policy is set. The speech, scheduled for the first day of the economic symposium later today, could outline a shift by the Fed towards average inflation targeting. If the yields on long-dated Treasury notes shoot higher after the speech, likely lifting the $ up as well, that would imply..

In TrackRecord’s Incubation Programme, we do a bi-weekly risk call with our students, exploring trade ideas and discuss possible themes going forward. In the process, our CIO and Programme Mentor, Phan Vee Leung, provides feedback on areas that the students can work on as they present their thought processes.

Here’s one student’s takeaway from the discussion:

This is a frequent lament of traders whenever they go through a period when markets are not going their way. There is only one constant in the markets, and that is that the market conditions will change. The ever changing conditions are why there are opportunities for us to.. get into profitable trades.

Though volatility in the currency markets are now very low by historical standards (the break of EUR/USD below the 33-month low this week is one of the lowest momentum break I can remember!), this does not mean this will always be the case. ..

So says Paul Tudor Jones, one of the most successful hedge fund managers of our time. Simple and yet so true. The concept of averaging down is one that is commonly taught in investing textbooks that you have probably read.. They give it an important sounding name like “dollar cost averaging”. They then give you many examples in the past of how it would have worked.

The problem is, this strategy works until it doesn’t. Sure, you can also cross a street that is not usually busy without looking..

Trading is not complex. In fact, it is relatively simple. These days, anyone with an internet connection and a bit of money can readily open a trading account and start clicking away. However, simple as it may be, it isn’t easy. If it was easy, millions of retail traders, who have picked up trading from watching a few YouTube videos or reading a few books, would be raking it in. Much like the fact that most people know that to be healthy and fit, one needs..

In trading, much like in life, expect to suffer setbacks. If you do not know how to take losses objectively and without emotion, you have no place in trading. Many of the trades that you put on are bound to go wrong and hit your stop-loss levels. That does not make you a bad.. trader. Moving your stop-loss levels or not having any stop-loss in place and letting your losses run will ensure you will eventually lose all your money. Those are the habits of a bad trader. Take your losses, preserve your capital. Live to fight another day. Making money in..

In times of uncertainty, there is bound to be large amounts of volatility and many conflicting headlines will hit the newswires. In this age of social media and fake news, be sure to have credible news sources that you can rely on. It is crucial not to.. blindly react to price action and give in to #FOMO (Fear of Missing Out).

With such volatility, there will be many trading opportunities as prices tend to get out of whack as fear and greed dominate the thinking of the average investor. Focus on the facts, and what are..