May 24
The Nikkei and Tail Risk
It is impossible to discuss the markets without taking notice of what has occurred in Japan this past week. This is in theory a major market and it is in fact a major market, one of the largest markets by total market cap. Yet it …
May 24
Investing Versus Gambling?
We are not sure exactly what is going on in Japan the past few days, but it is difficult to call it investing. This is in theory a major market. This is in fact a major market, one of the largest markets by total market …
May 23
How Do You Say Flash Crash in Japanese? I don’t know how to say flash crash and am not sure that is even the appropriate description of what occurred there. The Nikkei opened strongly and was trading at 15,942. It closed the day at 14,484, a drop of …
May 21
JGBD
I have used a lot of titles over the years, but this might be the strangest of them all.
May 21
JGBD
I have used a lot of titles over the years, but this might be the strangest of them all. JGBD is a ticker for a PowerShares DB 3x Inverse Japanese Govt Bodn Futures Exchange Traded Notes. Difficult to say 3 times fast, and even more difficult to look at. It has …
May 21
The Treasury Market Sell-off is Meant to be Bought
We have been one of the more consistent voices on Treasuries this year. We are traders and by our trading insight and nature, we believe all instruments can be bought, sold and shorted …
May 20
Land of the Rising Stocks
It isn’t just the Nikkei. In the past 5 days we have seen the Nikkei pop almost 4%, but we are finally seeing some life in China with the Shanghai up over 2.5% in that time, including 0.75% today. Month to date those numbers are 10.8% and …
May 17
Stocks versus Treasuries
So much has been made of what the Fed plans to do and we have had some wild gyrations in treasuries so we want to spend time looking at treasuries versus stocks in more detail.
May 16
Treasuries versus Stocks
What can drive stocks? What can drive treasuries? In theory there should be some scenarios where stocks go up, and some where they go down, and the same idea should be applicable to treasuries.
In a simple world, these should be the 4 scenarios.
The GREAT …
May 15
The Tepper Rally
Yesterday may go down as one of the most interesting days. It may be too simplistic, but for all intents and purposes, David Tepper sparked a 1% rally. Maybe there was more going on than that, but it looked like futures were negative when he got on CNBC and …