Featured Trades: (IS THE SECOND SHOE ABOUT TO DROP ON THE EURO?), (FXE), (FXF) 1) Is the Second Shoe About to Drop on the Euro? There were two pieces of news today that enabled the Euro (FXE) to benefit from a much needed relief rally. First, the German Supreme Court ruled in favor of the
'Go where the growth is, and where the debt isn't, and that is emerging markets,' said David Donabedian, the chief investment officer of Atlantic Trust Co., the private wealth management arm of Invesco.
'The Unites States government is in the business of securities manipulation,' said Jim Grant of the research boutique Interest Rate Observer.
Featured Trades: (AUGUST NONFARM PAYROLL TORPEDOES MARKET RALLY) 2) August Nonfarm Payroll Torpedoes Market Rally. Economist and market strategists alike were stunned by the August nonfarm payroll report showing zero job growth. The headline unemployment rate stayed unchanged at 9.1%. The reports for June and July were revised down a gut punching 58,000. Employers obviously
'Patience is not a word that is fixated on two year election cycles. China has a five year plan. We have a five minute plan,' said Steven Roach, former non-executive chairman of Morgan Stanley Asia.
Featured Trades: (ITCHING TO GET INTO CORN), (CORN), (JJG), (DBA), (POT), (MOS), (AGU), (CAT), (DE) 2) Itching to Get Into Corn. Long term readers of this letter know that I have long been banging away on the fact that the world is making people faster than the food to feed them. According to the World
Featured Trades: (WHY I'M FLIPPING TO THE SHORT SIDE), (BAC) 1) Why I'm Flipping to the Short Side. We have had a nice run here on (BAC), posting a profit of 20% in just one week. The stock market is now at the top end of a one month range, so I am going to
Featured Trades: (CONSUMERS ARE TELLING 'PORKY PIES') 2) Consumers are Telling Porky Pies. When I was working on the trading desk at the London office of Morgan Stanley I became familiar with the particular argot they speak in the East End, otherwise known as 'cockney'. A form a slang originally developed to keep bobbies
Featured Trades: (THE GREEK ASSIST ON MY SWISS FRANC SHORT), (FXF) 1) The Greek Assist on My Swiss Franc Short. Greece's Eurobank and Alpha Bank have agreed to merge to create the country's largest financial institution. The new entity will have assets of over $217 billion with 2,000 branches. Eurobank had been one of the
Featured Trades: (SELL OIL FOR A STOCK HEDGE), (USO) 2) Sell Oil for a Stock Hedge. Over the last month, asset classes everywhere have downshifted to new, lower trading ranges, reflecting the very rapid chopping of GDP growth forecasts for 2011 from 4% to 2%. Oil is no exception. I think the new range for
