While the rate of change is turning bearish on growth- and inflation, we may (temporarily) end up in a goldilocks scenario in July. Bonds tend to perform alongside equities in such a scenario. Buy risk and head for the summer cottage?
Positioning Watch – Reflation bets are back in
As the cyclical survey-based comeback seems to be priced in fully by markets, new fan-favorites have emerged: inflation hedges.
Positioning Watch – Low FX volatility provides cheap leverage for a rebound in manufacturing
If a rebound in manufacturing is truly happening, current dynamics in FX option markets provide cheap leverage and good opportunities to capitalize on our trading ideas. In the equity space, broad momentum is slowly creeping back in ETF fund flows, and the early reacceleration in prices haven’t affected sentiment it seems.
Positioning Watch – Spread-trading the way through the current environment
Rate cuts have been pushed a bit back by central bankers as economic data keeps surprising, but price action doesn’t truly reflect the dynamics we’ve been used to through 2022 and 2023. How should you play the current environment?
Positioning Watch – Where to find value currently
The risk aversion theme for 2024 continues as data is starting to go against consensus, and the question for 2024 will be where to find true value in asset markets. A couple of thoughts and charts on that here.
Positioning Watch – Risk aversion is back?
Markets seem to have given up the perfect landing narrative, and the ultra-long positioning in bonds and equities has started to retrace. A more mixed 2024 upcoming?
5 Things We Watch – Freight Rates, Positioning, Liquidity, EUR-flation, Growth
Limited upside in the ISM Manufacturing index as we await a dovish EUR-flation number coming in on Friday. There are plenty of things to look at in the global macro landscape this week.
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Positioning Watch – How are markets positioned ahead of a turbulent 2024?
As we approach 2024 we have a look at 2023 in rewind and point out the main positioning themes of the year, and how investors have positioned themselves for the new year.
Positioning Watch – The cocktail of heavy logs in both equities and bonds
After today’s soft inflation report from the US, we have a look at how markets are positioned at current junctures. Find out if you have your eggs in the right basket, and what consensus is currently.
Positioning Watch: Prepared for a Short Squeeze?
Last week’s rally was truly remarkable, especially considering the months of hardship that most assets endured prior. Could this be the long-awaited revenge of the longs, with short covering poised to dominate the price action in the days ahead? Dive into our analysis below to find out.
Positioning Watch: Shifting Gears without Panic
A volatile week with plenty on the plate for investors. Biden’s push for war funding while Capitol Hill remains in gridlock. How are the bets stacking up? Dive into our weekly positioning watch below to find out
Positioning Watch: Seeking Shelter in the Fog of War
In the wake of this tragic situation that is still unfolding, investors are grappling with the need to understand and navigate the turmoil. See our main Positioning takeaways here
Positioning Watch: Who is caught in the Crossfire?
As we review the events of this eventful week, it unfortunately appears to conclude with a tragic development, as we find ourselves reporting on the potential beginning of yet another conflict.
Positioning Watch: Higher for longer vs Lower for longer?
The Fed projects higher rates for longer, while oil production cuts persist. How do markets play the “Higher for longer and Lower for longer” ? Read our weekly report below
Portfolio Watch: Any juice left in the anti-Europe bet?
The short Europe bet is getting increasingly crowded but for good reasons, while the energy bet, impressively, is not overly crowded yet. That is comforting for EUR shorts as energy is a main driver of European versus US allocation.
Positioning Watch – The Chinese disappointment is written all over the latest positioning
CPI is cooling with economic data still suggesting that we are in a Goldilocks scenario. But are markets claiming their victory too early? And will unusual optimism be the catalyst for a recession?
Positioning Watch: From Japan with Love
A lot of volatility and plenty of aspects to digest after a red week in markets. But how have positioning and sentiment moved? Read here to for our view
Positioning Watch – The market’s response to another Fed hike
The central bank week is over, and that means it’s time for us to have a look at how Investors and Traders perceived the Fed meeting and how they have adjusted their portfolios in response.
Positioning Watch – The Goldilocks scenario is intensifying
With everybody jumping onboard on the equity rally, we have a look at how retail investors are positioned in equities, and what surveys have to offer us on the positioning front
Positioning Watch – Preparing for (dis)inflation?
With a strong jobs report and a soft CPI print, the market is currently digesting divergent data. In the upcoming weeks, we will closely observe market positioning to interpret the implications for price action. If the inflation paradigm is shifting, how are markets prepared?
5 Things We Watch – US CPI, Japan, Positioning, Fed Borrowing and Oil
With the US inflation report coming in later today, we have a look at the 5 things that we are keeping an eye out for in markets.
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Positioning Watch – The 60/40 portfolio in reverse
The summer lull is here, which normally calls for a quiet period in markets. But volatility might not be as low throughout July as a lot of people anticipated, which could force PMs back from the beaches. Follow along as we dissect how traders are positioned coming into the vacation season.
Positioning Watch – Markets are blowing off the recession
Economic data keeps surprising us positively, and markets are starting to believe that a soft landing is the base case. That’s at least what positioning data is telling us.
Positioning Watch: War in Russia? Markets are forward-looking but never see it coming
Positioning will be KEY to watch as political risks and tensions mount. We offer our view on the data for the past week as Yevgeny Prigozhin marches on Moscow.
EM by EM #9 The EM proxy crime and when to commit it
As a new addition to our editorial, I will now provide a monthly overview of emerging markets, taking a step back from the intricacies and offering a broader perspective. The purpose of this feature is to outline our current positioning within the market cycle and highlight the key factors we are monitoring surrounding EM.
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Positioning Watch: Like a dog chasing its own tail
Positioning is a MUST watch now that the Fed has skipped/paused. The risk of positioning getting crowded over the next couple of months is high and we aim at riding the wave until positioning tells us not to.
Positioning Watch – Turning our attention to Institutions and Fund Flows
Bullish price action and the soft-landing narrative is still roaring in markets, and we thus wonder whether It’s just the AI bonanza that’s driving market sentiment, or if the big players have actually switched their views. We take a look at institutional positioning and fund flows in this week’s edition.
Positioning Watch – The soft landing narrative is scratching the surface again
With the debt ceiling deal done and yesterday’s stunning NFP numbers, the soft landing narrative seems to be back, and optimism is gaining territory in the global macro scene. See what this means for positioning across asset classes, and whether you’ve placed your eggs in the right basket.
Positioning Watch: The mystery behind the massive shorts in equities and bonds
Based on price action, equity optimism is back, but positioning data tells us another story. We unfold the mystery, as well as providing you with positioning data across asset classes. Find out if you share the view of traders in this week’s edition.
Positioning Watch: FX market positioning is completely out of sync with the rest..
The Bank of England no longer sees a recession as the base-case, while a truckload of bank economists seems to be boarding the boat to soft landing island. Have traders followed along in positioning? Let’s see.