Some weeks ago we mentioned the following trade: long stocks, long commodities short dollar and short bonds. Look what happened in June. This trade was reversed. With the new quarter started it will be exiting to see what the next big trade will be.
What are the chances a new bull market in stocks will be the next big thing. First: it takes bulls to have a bull market. Or Big Money. But program trading data – soon to be abolished – suggest that the Big Boys are loaded with long position in indexfutures making them the only bulls in town in their league. I mean: the dumb money is bullish to, but not able anymore to move markets as computers and hedggies have overtaken these markets.
Does it make sense to lower the volume in order to let the individual investor participate in the direction of the market while taking the other side? Of course, but it means less profit and these guys are soooo greedy…
What are the chances a new bull market in stocks will be the next big thing. First: it takes bulls to have a bull market. Or Big Money. But program trading data – soon to be abolished – suggest that the Big Boys are loaded with long position in indexfutures making them the only bulls in town in their league. I mean: the dumb money is bullish to, but not able anymore to move markets as computers and hedggies have overtaken these markets.
Does it make sense to lower the volume in order to let the individual investor participate in the direction of the market while taking the other side? Of course, but it means less profit and these guys are soooo greedy…
Anyway. We think financials still play an important roll and it doesn’t seem there’s much bullish action going on in this sector.
Tomorrow, US markets will be closed.
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