Category Archives: Uncategorized

January 06

China Devalues Again

The People’s Bank of China struck another blow to global markets on Tuesday night, resuming the devaluation of the Yuan after Monday evenings China Caixin manufacturing sentiment report showed the economy is contracting at its fastest rate in 17 months. S&P 500 futures fell 1% immediately after. The devaluation also came after the Shanghai Composite fell by […]

December 13

Red Alert For Junk Bonds

Fear rippled through financial markets last week as the $788mm Focused Credit Fund high yield bond fund managed by Third Avenue raised the gates and barred redemptions until the fund is wound down. Markets responded violently to this move as it seems to have been related to Oil’s 12% decline on the week which officially put US […]

October 25

Central Banks Speed Towards The Wall

The Euro plunged Thursday morning as Mario Draghi promised more monetary accommodation to come at the European Central Bank’s December meeting. Then on Friday we learned the People’s Bank of China cut interest rates as well as the reserve requirement ratio to boost their flagging economy and falling stock market. Global stock indices rose sharply in the […]

October 09

Crowded Trades Squeeze Bears

This  week has seen a huge V shaped bounce in the most shorted currencies ,stocks, commodities and corporate bonds. The Energy sector ETF has rallied almost 16% off the lows seen last Friday as US equity markets opened down 1.2% after a disappointing jobs number pushed stocks back near their August lows. A turnaround started […]

September 14

Market Anxiety On The Rise

In the last three months, not much has changed in economic data. The US and China have been on divergent paths for a year now, while Europe muddles along in the doldrums of low inflation and growth. It has not been until recently that global equity markets suddenly recognized that China plays the role of […]

July 17

Divergence Will Grow Between Bank of England & Fed

A growing separation is brewing between the pace of policy tightening at the two most hawkish G10 central banks. As the risks from Greece and China were quickly subdued over the past week, markets have refocused on the timeline for tightening from the Federal Reserve and the Bank of England. This week Janet Yellen was […]

July 08

Global Risks Swarm Janet Yellen

Yesterday’s morning plunge in the S&P 500 was quickly erased in a late day rally, but the reasons to be nervous for Janet Yellen are only growing day by day. China’s stock market continued it’s jaw dropping losses overnight as the Shanghai Composite fell 5.7%. The index has now lost nearly 35% of its value […]

June 26

Aussie Dollar Hit By Plunging A-Shares

The Australian Dollar has been caught in a four month long sideways range between 0.8000 and 0.7600 as price has bounced around on relative indecisiveness from the Federal Reserve on rate hikes. Recently price has coiled into an even tighter range between 0.7600 and 0.7800 for the last four weeks that is starting to look […]

June 12

Greek Default Could Spark Massive Euro Rally

The last week has seen EURUSD fail to make further declines after three straight very impressive US data points. Non farm payrolls, retail sales and consumer confidence have all beat expectations by a wide margin. Traders continue to scratch their heads as illiquid markets whipsaw back and forth in relatively tight ranges.  What we do […]

June 08

U.S. Dollar and Stocks on the Edge

The S&P 500 index is approaching some very key levels of support today between 2080 and 2070. The 100 Day moving average is at 2084. The middle Bollinger band on weekly charts lies at 2072, this level has only been violated five times since 2009 and a mild correction ensued each time. A bevy of […]