Don’t Be A Hero: One Bank Thinks Now Is The Time To Look For Quality
It’s not always a good idea to follow Goldman Sachs’ investment recommendations. Who could forget the famous NY Times op-ed penned by departing investment banker Greg Smith who offered the following rather scathing critique of the firm’s attitude towards those the bank is ostensibly obligated to serve: “Over the last 12 months I have seen […]
Fading the Market
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9aMDFXdi1KNVFZRQ==[/video_player] TheoTraders know not to jump on the bandwagon. The ones that go against the grain are the ones who put the odds in their favor. Tonight let’s look at the S&P expected range going into the Brexit vote and what levels we will want to fade.
Mind The “Fracklog”: Here’s Why Oil Prices Can’t Sustain A Near-Term Bounce
There are two reasons why oil prices will have a difficult time sustaining a rally above $50/bbl. One reason is heightened tensions between Saudi Arabia and Iran. We’ve discussed this dynamic here before. Essentially, Iran is angling to ramp production to 4 million b/d. The (former) pariah state has already brought output back up to […]
Yellen Testimony Overshadowed By Brexit, Soros Warns Of “Black Friday”
Janet Yellen trekked up Capitol Hill on Tuesday for her semi-annual Humphrey-Hawkins testimony. Frankly, it kind of feels like a snoozer. Here are some of the bullet points: WE DO HAVE LEGAL BASIS TO PURSUE NEGATIVE RATES NOT CONSIDERING NEGATIVE RATES BREXIT-RELATED FINANCIAL VOLATILITY COULD AFFECT U.S. I DON’T THINK RISKS TO FINANCIAL STABILITY ARE […]
Stocks, Bonds, Commodities, And Gold: Trading Brexit
The good thing about the Brexit referendum is it’s this week. That rules out the painful prospect that we’ll have to endure the type of summer we suffered through last year when there was a Greece headline every five minutes on market days and every 10 minutes on weekends. Sure, there’s some event risk here, […]
Everything Is Fixed, But Watch For “Tape Bombs” Ahead Of Thursday
We woke up Monday morning and everything was fixed. Actually, it started last night when the British pound suddenly spiked above 1.46. Liquidity was thin, according to traders who also told Bloomberg that market-makers in some global banks have been told to cease quoting short-dated GBP options until further notice. The GBP rally set […]
Time To Rotate Out Of Stocks And Into… Overpriced Bonds?
It wasn’t a good week for stocks. The Dow and the S&P shed more than 1% while the Nasdaq lost nearly 2%. The problem: the UK may vote to leave the EU next week. “Brexit” – like “Grexit” before it – is something that most US equity investors neither care about nor want to hear […]
In Dramatic Shift, Fed’s Bullard Says FOMC Should Stop Making Long-Run Projections
This has been the year that markets finally began to question central banks in earnest. It started in January when the Nikkei took a dive and the yen surged following the Bank of Japan’s decision to take rates into negative territory. That was the shot across the bow. By all accounts, the move below zero […]
Brexit Drama Reaches Fever Pitch Following Death Of British MP
Even Jim Cramer admits it: global macro is in the driver’s seat. On Friday morning the boisterous Mad Money host bemoaned the fact that no one seems to care about anything but Brexit and geopolitics. “I’m probably the only person in the world reading the Kroger quarter,” Cramer lamented. “It’s only the biggest grocery store […]
LendingClub “Solves” Its Problems: Will Buy Its Own Loans
Investors just aren’t going to learn when it comes to LendingClub. To be clear, this stock matters for two reasons. First, it’s a classic example of a “story” stock gone horribly wrong and as is usually the case, some investors are going to believe the story until they finally just go down with the ship. […]