Forex traders are facing the prospect of a “recovery” in prices as the world looks for a new consensus to resolve a prolonged period of uncertainty.
In an article for the Wall Street Journal, hedge fund manager Paul Tudor Jones warned that the futures market was a “churning, spinning ball” that could explode into a full-blown panic when traders begin to panic.
“The market is a huge, spinning, spinning rollercoaster of a bull market,” Jones said.
The markets are changing rapidly.
The price of oil, the price of gold, the prices of everything, everything is changing.”
Jones also warned that markets were “moving through a phase where the majority of markets have not seen any price gains since August,” meaning that “everywhere you look, everything seems to be falling apart.”
This chart from the Wall St. Journal illustrates what a collapse of the markets looks like:The Dow Jones Industrial Average is up 534 points or 0.3 percent since late April, when it plunged to an all-time low of 6,988.02.
The S&P 500 is up 10.5 points or 1.3% since the start of the year.
The Nasdaq Composite is up 21.6 points or 2.2% since mid-March.