Monthly Archives: October 2010

All Things Correlated: Stunning Aussie$/S&P 500 Relationship

Posted on October 20, 2010 by macromon

A good friend in Singapore, who is one smart dude, and former head of Goldman Sachs’ Asia asset management, pointed out the S&P500 trades almost tick for tick with the Euro and the Aussie currencies.    This is reflected in the … Continue reading →

Posted in Currency, Equities | Tagged , , , | 13 Comments

Did the Chinese Drop a Rare Earth Trade Bomb?

Posted on October 20, 2010 by macromon

Call us paranoid, but what would you conclude from the following headlines: Oct. 15:  U.S. launches trade investigation into China’s green tech sector – Xinhua Oct 19:  China to limit exports of ‘rare earth’ minerals vital to energy tech – … Continue reading →

Posted in Black Swan Watch, BRICs, China, Currency, News, Policy, Politics, Sovereign Risk | Tagged , | 1 Comment

Rare Earth Stocks Up Big on China Restrictions

Posted on October 19, 2010 by macromon

China announced further limits on its Rare Earth exports today.  The country controls 97 percent of the world’s supply, which are critical for hi-tech products, including smart phones, hybrid and electric vehicles,  and cruise missiles.   Hard to read if … Continue reading →

Posted in China, Commodities, Currency, Geopolitical, Politics, Rare Earth Elements, Sovereign Risk, Uncategorized | Tagged , , , , | 2 Comments

“Emerging markets at risk from a gigantic bubble” – FT

Posted on October 19, 2010 by macromon

In case you missed it,  great FT piece by Peter Tasker of Argus Research about asset bubbles in Japan and China and the role of FX policy.  It’s all about Macro these days, The message is clear. It wasn’t the … Continue reading →

Posted in China, Currency, Equities, Gold, Monetary Policy | Tagged , , , , | Leave a comment

Fed creating “grave distortions” – Brazil Central Bank

Posted on October 18, 2010 by macromon

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | Leave a comment

Apple Sliced 6% in After Hours Trading on 14% Earnings Beat

Posted on October 18, 2010 by macromon

Wow,  a company beats earnings estimates by 14 percent and they take the stock down 6 percent.  What gives?   Yesterday we posted, Apple Needs “Big Mama” Beat to Keep the Markets Rolling, which stated given the huge stock price run-up … Continue reading →

Posted in Equities | Tagged , , , | Leave a comment

Rare Earth Day 2.0

Posted on October 18, 2010 by macromon

Take a look at Rare Earth (not the band) today.  Lots of market buzz as Molycorp (MCP) up over 10 percent and Rare Earth Elements (REE) up over 22 percent.  Recall our take on the Rare Earth trade as “gold … Continue reading →

Posted in Commodities, Geopolitical, Gold, Politics, Rare Earth Elements, Sovereign Risk | Tagged , , , , | 2 Comments

Apple Needs “Big Mama” Beat to Keep the Markets Rolling *

Posted on October 17, 2010 by macromon

Apple reports after the bell on Monday and we think this event will determine the direction of the risk markets over the next few weeks.  Given its recent and historic run-up into earnings, the company will have to beat estimates … Continue reading →

Posted in Equities | Tagged , , , | 12 Comments

The Greatest Trade Ever?

Posted on October 15, 2010 by macromon

Check out Bespoke’s great table of Credit Default Swap (CDS) prices.   We don’t trade CDS, but doesn’t Long China/Short Japan,  straight up,  seem like the greatest trade ever? Or just outright short at 53 bps?   Japan’s public funding requirement is almost … Continue reading →

Posted in Black Swan Watch, Bonds, Monetary Policy, Sovereign Risk | Tagged , , , | Leave a comment

Chinese Solar Spanked on US Trade Rep Announcement

Posted on October 15, 2010 by macromon

Holders of Chinese solar stocks got a little taste of what a trade war could feel like.  Trina Solar fell more than 9 percent as U.S. Trade Representative, Ron Kirk, announced his office has launched an investigation into the Chinese … Continue reading →

Posted in Black Swan Watch, BRICs, China, Currency, Equities, Policy, Politics, Sovereign Risk | Tagged , , , , , | 2 Comments