Good afternoon America,
Sorry, it’s late, I have been watching the first game of the World Cup! I hope everyone enjoyed Qatar’s VAR antics.
Trading short-term last week was difficult, overall book was up but it was a struggle.
In last week’s volume, I gave commentary to fade the recent move in Copper and Gold which both worked wonders. Copper was -7% on the week and Gold was -1% on the week. I also shared some FX ideas like buying lower beta pairs - USD/NOK which was +2.76% whilst also incorporating some higher beta longs like USD/JPY which was +1.14% on the week. Whilst I expect there’s a chance to see more covering in Gold, I’d add to the short on any extended move higher.
Also shared these three ideas with all subscribers;
Short ACWI (was 87.59, now 86.94) vs Long INTC (was 30.43 - I’d buy this leg @ <28 (now 29.87))
Short Copper (was 3.913 - now hg1! 3.632)
Long GSK (ADR was $31.58, LSE 1,323 GBX - ADR now 32.89 (31c ex-div on Thurs, LSE now 1,368 GBX) vs Short FTSE 100 at 7380 now 7392
Some other trades given to paid subscribers were; a 10s30s flattener, looking to short bund and short GBP/MXN.
As I mentioned on Twitter, I think de-grossing is over. A very long period of de-grossing which has come from both longs and shorts across sectors in North America, though still a chance to see some unwinds. Let’s dive in to the week ahead…