Deutsche Bank Warns on Positioning

The video discusses current market conditions, focusing on equity holdings and the potential risks associated with them. It highlights the role of volatility control funds and their sensitivity to market changes, particularly if the S&P 500 drops by 2%. Additionally, it covers the shift in trend followers' strategies, who have moved from long to short positions in oil and copper, influenced by recent market actions and technical headwinds.

What is the potential risk associated with traders holding a large amount of equities?

• Increased market growth

• Limited room for further growth

• Higher dividend payouts

• Decreased market volatility

What triggers volatility control funds to sell stocks?

• A 3% drop in copper prices

• A 10% increase in oil prices

• A 2% fall in the S&P 500

• A 5% rise in the S&P 500

How much are volatility control funds expected to sell if the S&P 500 falls by 2%?

• $1 billion

• $3 billion

• $5 billion

• $10 billion

What change have trend followers made in their commodities positioning?

• From short to long in gold and silver

• From short to long in oil and copper

• From long to short in oil and copper

• From long to short in gold and silver

What additional factor is affecting the commodities market besides coronavirus?

• Political stability

• Technical headwinds

• Increased demand

• Decreased supply