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These Are The Biggest "Pain Trades" Right Now

Tyler Durden's picture




 

By definition, "pain trades" are those which could (and usually will) inflict the most pain on the largest number of speculators. They also tend to happen increasingly more often in a time when momentum ignition algos seek to punish the weakest hands who simply immitate the large money managers.

Add an illiquid, whipsawing market, and soon in addition to a short squeeze ETF there will be a "PAIN" ETF - one which takes positions counter to whatever is the prevailing conventional wisdom.

So what are the prevailing pain trades at this moment? According to BofA's latest fund manager survey, investors are positioned for i) more asset reflation, ii) stronger US$ and iii) rising rates. "So weak US growth, a rise in EU rates & stronger Chinese production would be painful in coming weeks."

 

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Mon, 04/20/2015 - 09:38 | 6010607 SheepDog-One
SheepDog-One's picture

U.S. Is 'under owned'? What the fuck is that even supposed to mean?
'Buy moar U.S.'s!'

Mon, 04/20/2015 - 10:03 | 6010662 negative rates
negative rates's picture

A pain trade is a loss that is now refered to as a "revenue hit", so as to not upset the trader in thinking he is, well, a loser.

Mon, 04/20/2015 - 11:07 | 6010852 KnuckleDragger-X
KnuckleDragger-X's picture

I'm pretty sure pain means the traders are having trouble making their bonus.....

Mon, 04/20/2015 - 10:13 | 6010695 Money_for_Nothing
Money_for_Nothing's picture

Leverage at 20 to 1 instead of 50 to 1.
Corzine: Too little rehypothecation.
Hillary: What difference does it make.

Mon, 04/20/2015 - 11:04 | 6010847 KnuckleDragger-X
KnuckleDragger-X's picture

So is cash apparently which is a bit confusing......

Mon, 04/20/2015 - 09:42 | 6010618 MATA HAIRY
MATA HAIRY's picture

OK, GOOD POST.....

Mon, 04/20/2015 - 09:45 | 6010625 pob
pob's picture

There is only one “owner” of America and that is her Majesty Queen Elizabeth II

Mon, 04/20/2015 - 09:49 | 6010633 lakecity55
lakecity55's picture

Yes, we gained political, not monetary independence from the UK.

Mon, 04/20/2015 - 09:54 | 6010642 ThirteenthFloor
ThirteenthFloor's picture

+1 pob.

Mon, 04/20/2015 - 10:35 | 6010763 BeaverCream
BeaverCream's picture

Please...they don't own a thing.  They're public puppets for those that do. 

 

"Permit me to issue and control the money of a nation, and I care not who makes its laws!"

Mon, 04/20/2015 - 09:55 | 6010641 moratar
moratar's picture

I don't get the chart.

Discretionary positioning of fund menagers is overowned? or

Positions of fund managers in descretionary thingies is overowned.

or Funds of menagers in discretionarysomething posiotions are overowned.

 

Owerowned by what definition. They own too many what? positions ? What positions? I know sex positions but that's not that i guess.

It makes no sense.

Mon, 04/20/2015 - 10:57 | 6010823 Your guess is a...
Your guess is as good as mine's picture

Me too. My best guess it's a dumb way to show bollinger bands, with one side being overbought and the other oversold. Some will snap back, some will fade, some with stay over/under for a while. 

 

Useless article.

Mon, 04/20/2015 - 09:54 | 6010644 LawsofPhysics
LawsofPhysics's picture

Quick sheeple, to the other side of the boat!!!

Mon, 04/20/2015 - 10:05 | 6010671 negative rates
negative rates's picture

They are jumping off the starboard side, so staying in the middle is the best course for today.

Mon, 04/20/2015 - 10:09 | 6010676 NoWayJose
NoWayJose's picture

Stupid article.  We will see weak US growth, there is no way the EU (or the Fed) will raise rates, and China will not see stronger growth because they are now using the same failed financial tricks that have not worked anywhere else!

Mon, 04/20/2015 - 10:24 | 6010737 Yen Cross
Yen Cross's picture

   Moar BAC bs...

Mon, 04/20/2015 - 21:56 | 6013211 rex-lacrymarum
rex-lacrymarum's picture

Someone has to own every stock there is. There are no "ownerless" stocks floating about in the ether somewhere. The term "underowned" is completely meaningless. 

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