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Talking Points:

• In the past year, pullbacks in 'risky' assets were immediate opportunities to 'buy on the dip'

• The fervor to buy into corrections however is waning, raising the risk that a true turn could occur

• Market's price action, volatility readings and participation measures are key to reading this trend

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Various markets have seen a substantial retreat in speculative appetite and positioning these past few weeks. But, in contrast to previous bouts of doubt, traders are not flooding in so quickly to take advantage of the pullback. Confidence in a steady and bullish market (some may say complacency) is starting to wear thin as investors recognize the price of assets and the deteriorating fundamental outlook. Are we witnessing the critical shift in sentiment that institutes a heavy bearish shift? We take the risk's temperature and discuss its tradability in the weekend Strategy Video.

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Forex pairs in this Article » USD/JPY

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