Thursday 11 January 2018/10:14 a.m.
“The information you have is not the information you want. The information you want is not the information you need. The information you need is not the information you can obtain. The information you can obtain costs more than you want to pay.”.
Peter L. Bernstein, Against the Gods: The Remarkable Story of Risk
We have recently updated our Key Market Strategies, adding more commentary and third-party research. In this service we share directional trading ideas for key asset classes utilizing exchange traded funds including stocks (SPY & EEM), bonds (TLT), gold (GLD), oil (USO), and the US dollar (UUP).
Below you will find our last two issues for review.
Expecting a 10% correction in stocks; but the bull seems intact
Global growth should drag yields higher. Inflation could be a wild card.
The US dollar is in trouble; it will likely be the driver for gold.
Remaining long oil though a bit frothy near term.
Long USO (oil) from 9.82; entered on 7/25/17 – Open Profit %: +28.7%
Short TLT (20-yr bond index) from 125.72; entered on 12/19/17 – Open Profit %: +2.2%
Looking for a reversal pattern to get short SPY.
Interest rates pushing higher; but a new bear market in bonds is debatable.
Still like gold long longer term, but waiting for more confirmation to enter.
Oil positive sentiment likely near an extreme; but sitting through any correction.
Watching for a break of support at 91.91 in the US dollar index to get short UUP.
Chief Market Strategist DHF.
George Town. Cayman Islands.