“Wait and see” is the best strategy today
Running large positions on a day like today is probably not a great idea although if large hedge funds already have them built up, they have little choice but to hang on and hope. These big funds normally have excellent contacts into Washington and the fact that they seem happy to sit on their positions (short JPY) does suggest that they are confident of a positive resolution at the last minute.
For the rest of us mere mortals, it’s a matter of waiting to see if the market gives us some opportunities. I’d suggest that we should wait and see how the market reacts to the first of the headlines once they start hitting the screen, and then decide on our strategy from there.