As we highlighted in a prior post, when the dollar rallies, companies with domestic exposure tend to outperform their multi-national peers.Since small-cap stocks tend to have little in the way of international exposure, they tend to be a big beneficiary of dollar strength. Look no further than the relative strength chart of the Russell 2000 versus the S&P…
I noticed the strangest thing – if you look at the S&P 500 and Bitcoin, they are virtually in lockstep. Taking a closer look, just at this year, the correlation seems even tighter still: Why is this? Animal spirits? The public adulation for speculation running in parallel irrespective of asset class? It would seem so. And it would further…
Video length: 00:09:45 Stocks end the day flat as POTUS announces the withdraw of the Iran deal as expected. Historical volatility continues to be greater than implied volatility giving traders an opportunity to flip the iron condor the other way. Watch tonight’s video newsletter update for trading opportunities and an overlooked earnings announcement you’ll want…
In this week’s edition we look first at the reflation trade and specifically combined futures positioning in crude oil, copper, equities, the US dollar, and treasuries.Then we look at the US dollar index and why the chart shows it could be more than just a short squeeze. Then we move in to some longer term…
Video length: 00:11:09
Gold was up half a percent year-to-date through last Friday. This doesn’t sound very exciting, but over the same period, the S&P 500 Index was in the red—the first time in nearly a decade that stocks have been negative for the year through the beginning of May. The yellow metal is doing the one thing…
“storm in a teacup”… Video length: 00:00:20 Of course today’s big headline was confirmation that Trump is pulling US out of the Iran Nuclear Deal. That sparked some volatility in WTI that suggest extreme positioning is at play… Gold was also in play after Trump’s address… Defense stocks rallied happily on the back of Israel…
The three key currency indices of the dollar the yen and the euro have all signaled significant changes in market sentiment and momentum on the slower timeframes, and in the associated chart with this post we have the daily and weekly charts for the USDX top left and top right respectively, whilst bottom left we…
Although we await US President Trump’s Iran Nuclear address later this afternoon, Asian markets still closed better bid across the boards. Most of this was associated to the regional currency declines, but we did see some markets that performed. In Hong Kong the Hang Seng opened over 1% higher and continued to make progress for…
