Posts Tagged ‘Mexican peso’

Notes From Underground: Another FRA Podcast

January 29, 2017

Tonight I am posting the latest episode from the Financial Repression Authority (click on the blue link to listen). I do these for no remuneration as I think the information flowing out of this group creates great conversation and can generate some very profitable investment opportunities. Yes, it’s 34 minutes long but it is more LEARNATIVE than the network news. So pour a stiff whisky and listen while doing other reading. I share this with, you readers because I am honored to be a part of this great dialectical process. One of the key points in tonight’s post is the development of a narrative in which to analyze the world of Trump. It is not a partisan narrative but one I am developing as I attempt to discern the unfolding global dialogue being put forward by Team Trump.

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Notes From Underground: Forward Guidance Takes a Step Backward

October 22, 2013

Today the markets received the long-awaited data on the U.S. job situation and the major beneficiary seemed to be the HFT algorithms that had the number two seconds early. The stock indices, currencies and precious metals all reversed early movements and rallied just prior to the public release. Setting aside the trading action, the data continues to reflect a very tepid recovery. Nonfarm payrolls grew by 148,000 making the FED’s September 18 decision look credible. More important, the average hourly earnings grew less than expected and kept the pace of wage growth very anemic. The FED has communicated that it is the jobs rate that the markets should be mindful of when anticipating any future action to raise rates. The FED has told the markets that an UNEMPLOYMENT LEVEL of 7.0% or maybe 6.5% will be a threshold target that could prompt the FED into action.

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Notes From Underground: This Market Is a Tribute to Rudyard Kipling’s “IF”

June 25, 2013
“If you can keep your head when all about you
    Are losing theirs and blaming it on you”
The opening stanza of Kipling’s poem about British stoutness is not to say others are blaming but rather an admonition from Notes From Underground about keeping your wits about you and trying to make quality decisions in trying times. In a financial world that is steeped in excess leverage, nanoseconds and algorithmic trading programs ,being a fundamental/technical trader seeking relative value becomes a daunting task. I am not one who favors catching “falling pianos” and have been more content to let trades come to make rather than force the action. As the markets unwind leveraged trades that causes massive selling across all asset classes.
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Notes From Underground: Friday Is the All-Important U.S. Employment Data, But Why Was European Employment Glossed Over?

March 7, 2013

The February jobs data has been compiled and is now ready for public consumption. The consensus is for 165,000 (revised upward from 160,000) nonfarm payroll jobs being added and the rate to hold steady at 7.9%. This may be a difficult number to trade because the equity markets have already sloughed off so much negative news to keep the rally  in tact–Italian elections, sequestration and economic malaise throughout Europe. The weekly jobless claims numbers have surprised on the downside during the last few weeks so a 200,000 NFP number would not be a surprise. It will be more important to watch average hourly earnings and the length of the work week–earnings are expected to be up by 0.2% per hour.

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Notes From Underground: The Yen Will Not Be the Sacrificial Lamb

September 19, 2012

And by the end of trading the YEN had reversed its initial weakness and wound up stronger–the 24-hour trading range was 79.20-78.25, with the settlement at 4:00 p.m. CST, 78.37. It seems that the market will not allow the BOJ (Bank of Japan) to do less than the ECB or the FED. BOJ Governor Shirakawa raised the asset purchase program to 80 trillion YEN from 70 trillion and removed its 0.1% bidding floor for Japanese Bonds (JGB). It is now possible that the BANK will go to negative bids on its JGB buying program so the move was aggressive for what has been a very conservative policy-oriented institution. Even Japanese FINANCE MINISTER Jun Azumi said, “The BOJ took more action than we anticipated.” And again although the YEN weakened on the initial news, by day’s end it reversed and closed strong. Mama, don’t let your children grow up to be currency traders.

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Notes From Underground: Has The FAT LADY BEGUN TO SING OR WAS THIS THE QUEEN’S ARIA?

July 2, 2012

The loser in Brussels was … FRANCE. The markets were giddy as they drank deep from the KOOL AID spring of separating BANK AND SOVEREIGN SOLVENCY  did this really occur? It is far too early to tell. For all the “PUNDITS” it seems that Chancellor Merkel has capitulated to the needs of Spain and Italy as France cheered on the brinkmanship of Mario Monti. The French, led by President Hollande, has now ended the 50-year-old policy of Gaullism as France will no longer be deemed a responsible partner for Germany as being the mainstay of Europe.

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Notes From Underground: The COLLATERAL DAMAGE From Bernanke’s Fed Policy

June 24, 2012

Is there anyone involved in financial markets who doesn’t  believe that GLOBAL BOND MARKETS ARE BROKEN AS INDICATORS OF PREDICTED ECONOMIC PERFORMANCE? The FED has pursued a policy of TWISTS AND QEs as it pursued a policy of forcing real long-term yields to ultra-low levels in an effort to stimulate the housing market, capital investment and the portfolio balance channel in forcing investors to opt for riskier assets to enhance yield (Greenspan’s beloved wealth effect). The problem is that as the FED and other CENTRAL BANKS have bought TRILLIONS of sovereign debt in an effort to stimulate the global economy much COLLATERAL has gone onto the books of the monetary authorities and left the REPO markets lacking the necessary collateral.

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Notes From Underground: At the End of Q1, Global Equity Markets Are Floating on a Sea of Liquidity

April 1, 2012

The tale of the first quarter tape is in and evidenced by the large gains of the equity markets, global investors have benefited from the sea of liquidity provided by the CENTRAL BANKS OF THE DEVELOPED WORLD. Global stock markets have been calmed by the massive liquidity injections provided by the BOJ, ECB, FED and BOE.The German DAX closed the quarter up more than 15%. The long dormant NIKKEI was up almost 20% powered, by the new inflation mandate of the BOJ/MOF; and, of course, the S&Ps were up almost 12%, while the tech-ladened NASDAQ climbed more than 20%.

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