Trading Global Macro Podcast – Ep. 27

In this episode of the Trading Global Macro Podcast, John Kicklighter and Matt Weller discuss what 'risk appetite' truly is, its influence on financial markets, why it can override traditional fundamental and technical signals, and how traders can determine whether sentiment is driving price action.

The discussion covers the spectrum of risk-on and risk-off behavior across equities, fixed income, commodities, and currencies, including why confirmation across multiple markets can provide a clearer indication of sentiment than relying on a single benchmark. They also explore how risk appetite may influence directional bias, position sizing, and the choice between trend, range, and breakout strategies.

Key topics include:

🔷What risk appetite, risk trends, and risk-on/risk-off mean

🔷Why market sentiment can override fundamentals and technical analysis

🔷How cross-market correlations can confirm a broader risk trend

🔷Where popular markets stand on the sentiment spectrum

🔷Why a single market may provide an incomplete view of sentiment

🔷How risk appetite can inform directional bias, position sizing, and trading strategy

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