Carry Trade
Happy New Year: Global Stocks Crash After China Is Halted Limit Down In Worst Start To Year In History
Submitted by Tyler Durden on 01/04/2016 06:46 -0500- Australia
- Bond
- Carry Trade
- Chicago PMI
- China
- Circuit Breakers
- Copper
- Crude
- Crude Oil
- Equity Markets
- Eurozone
- Federal Reserve
- Ferrari
- fixed
- Flight to Safety
- Germany
- headlines
- High Yield
- India
- Initial Jobless Claims
- Iran
- Jim Reid
- KIM
- Markit
- Meltdown
- Middle East
- NASDAQ
- Nikkei
- RANSquawk
- Saudi Arabia
- Shenzhen
- Swiss Franc
- Yen
- Yuan
It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...
2016 Off To A Miserable Start: Asian Stocks Drop; Futures Slide After China PMI Tumbles On Dire Commentary
Submitted by Tyler Durden on 01/03/2016 21:31 -0500Earlier in the session, after the surge in oil prices on fears of a spike in belligerence between Saudi Arabia and Iran, bulls were hopeful that after a poor close to 2015, at least the first trading day of 2016 would set a positive mood: after all, if there is one thing war is good for, it is to lift stock markets. And it did... for about 3 hours. Then moments ago, Caixin Media and Markit Economics released the latest December PMI, which was, in a word, a total disaster, one which promptly sent US equity futures sliding, and the Shanghai Composite tumbling some 4%... and CSI-300 Limit down.
One Of The Two Most Crowded "Consensus Trades" Of 2015 Just Ended With A Whimper
Submitted by Tyler Durden on 12/28/2015 16:32 -0500One year ago, the two most crowded trades going into 2015 were being long the USD and short US Treasurys. While the former trade had questionable success, the latter most certainly did not work and while hedge-fund managers and other large speculators spent December 2014 setting the biggest bets against Treasuries in four years, fast-forwarding 12 months later we find that the smartest money in the room has fully abandoned those massive short Treasury bets.
Currency Markets offer some of the Best Trading Opportunities
Submitted by EconMatters on 12/28/2015 13:53 -0500Imagine if Casinos told you in advance what the next card from the deck in a game of Blackjack was going to be?
Has The Great Carry Unwind Arrived: Yen Surges After Warning USDJPY 100 Coming
Submitted by Tyler Durden on 12/24/2015 13:33 -0500Goldman, Decembert 20, 2015: "We think the BoJ is closer to easing further to attempt to achieve a successful reflation than it is to giving up altogether, and so we continue to expect $/JPY higher. We recommend being long $/JPY as part of our 2016 top trade recommendation (along with short EUR/$) and forecast $/JPY at 130 in 12 months"... Three days later, the USDJPY is 100 pips lower.
Futures Rise, Drop, Then Rise Again In Illiquid Session After China Promises More Stimulus
Submitted by Tyler Durden on 12/22/2015 06:55 -0500- Apple
- Australia
- Bond
- Carry Trade
- China
- Citigroup
- Copper
- Credit Suisse
- Crude
- Crude Oil
- Deutsche Bank
- Falcon
- FINRA
- fixed
- Ford
- France
- goldman sachs
- Goldman Sachs
- High Yield
- Hong Kong
- Housing Market
- Japan
- Monetary Policy
- national security
- Netherlands
- Newspaper
- Nikkei
- Personal Consumption
- Price Action
- Redstone
- Richmond Fed
- Unemployment
- Yuan
It has been a seesaw session with U.S. stock index futures following their dramatic buying burst in the last half hour of market trading yesterday by first rising, then falling, then rising again alongside European equities both driven almost tick for tick with even the smallest move in the carry trade of choice, the USDJPY, even as Asian shares trade near intraday highs after China’s leaders signaled they will take further steps to support growth.
The Federal Reserve Will Hand Out $11 Billion In Riskless "Profits" To Foreign Banks In 2016
Submitted by Tyler Durden on 12/21/2015 11:55 -0500So there you have it: a riskless "profit" handout for foreign banks, subsidized by the most famous US "public" institution - the Federal Reserves - amounting to approximately $11 billion in just one year.
The Fed Has Delivered Far More Than Just A Lump Of Coal This Time
Submitted by Tyler Durden on 12/20/2015 16:55 -0500The problem with all of this is that it’s now becoming apparent to everyone. The amount of mal-investment along with just how intertwined all the subsequent carry trades and more is becoming frightfully obvious and can no longer be hidden from view. The real problem now facing the Fed. which I believe they themselves did not fully comprehend was the extent in which all of this was: so blatantly obvious. Again: to anyone who truly wanted to look. Without the Fed’s interventionism – there is (and was) no market. And now with the raising of rates; no one will be able to miss or avoid that fact any longer. No matter how hard they try.
Morons At The Precipice
Submitted by Tyler Durden on 12/12/2015 13:25 -0500Seven years of zero rates, massive monetary inflation and incessant market backstopping have desensitized and anesthetized. Rational thought ultimately succumbed to "perpetual money machine" quackery. And now all of this greatly increases vulnerability to destabilizing market dislocations, as senses are restored and nerves awakened. "A lot of this looks like late 2007 or early 2008," warns one manager, but today, market mispricing is systemic and global – virtually all securities classes at home and abroad.
Kinder Morgan - Poster Boy For Bubble Finance
Submitted by Tyler Durden on 12/11/2015 20:00 -0500After Tuesday’s dividend massacre, it’s plain as day that Kinder Morgan wasn’t the greatest thing since slice bread after all. That is, a “growth” business paying rich dividends out of rock solid profit margins and flourishing cash flow. In fact, it was just a momo stock on a borrowing spree.
"2015 Was Like Commuting By Rollercoaster" - Art Cashin Reviews The 2015 Market And Shares His 2016 Outlook
Submitted by Tyler Durden on 12/10/2015 13:27 -0500"2015 was like commuting by rollercoaster. There were heart-stopping drops, there were nearly vertical ascents, and when it was all over you got off just about where you started and it cost you money."
Is The Fed Being Forced To Hike Rates To Defend The Dollar?
Submitted by Tyler Durden on 12/10/2015 11:55 -0500At the moment, the strength of the USD correlates very strongly to equities. When King Dollar is torpedoed like it was yesterday, stocks plummet. So does this mean that a rate hike next week will be tremendously bullish for stocks?
Global Stocks Slump As Mining Rout Accelerates, Concerns Grow About Chinese "Stealth Devaluation"
Submitted by Tyler Durden on 12/09/2015 06:53 -0500- Alistair Darling
- Aussie
- Bond
- Carry Trade
- China
- Copper
- CPI
- Crude
- Crude Oil
- Equity Markets
- Federal Reserve
- fixed
- France
- Germany
- Glencore
- Gundlach
- High Yield
- Hong Kong
- Jim Reid
- Markit
- NFIB
- Nikkei
- People's Bank Of China
- Precious Metals
- Price Action
- Short Interest
- Volatility
- Volkswagen
- Wholesale Inventories
- Yuan
Overnight market action has largely been a continuation of Tuesday's key themes with European stocks falling as a selloff in mining companies extended to a 7th day, even as metals prices rose and crude oil rallied modestly from a six-year low after yesterday's API crude inventory draw. U.S. equity futures have rebounded from modest declines, as emerging-market shares extended their losing streak to a 6th day while Asian stocks dropped to 2 month lows.
Is the Fed About to Light the Fuse on a $9 Trillion Debt Bomb?
Submitted by Phoenix Capital Research on 12/07/2015 08:13 -0500The US Federal Reserve (Fed) and European Central Bank (ECB) have created a very dangerous situation. And it is one that few if any investors are assessing.





