So you have a lot of tension in Ukraine as well as Gaza, a Plane was shot out of the SKY, yet the buyers came in force to push these markets back near highs again. The disconnect is huge, this is simple supply and demand, and when there is Billions sitting on the sidelines at various funds, they will keep pushing this up regardless of the macroeconomic picture.
Netflix is a prime example, its run up almost 100% in the past few months, and has an inline earnings report, yet it still edges further up in after hours trading. Now you would have thought the big run up would price in an inline number, doesn't seem like it, maybe the 100% move up was pricing in a miss, so the fact it came inline was a good thing. Either way this cheap money is just pushing Equities higher, Bunds higher, Treasuries higher, pretty much everything is going higher apart from the agricultural products which have been taking a battering of late.
Lot of data out this week as well as earnings reports so this might provide a lot of BTFD (Buy The Fucking Dip) opportunities, as the only strategy that is working well is to buy on any down tick.
On the Spread front, generally volumes are very low, so trying to scalp during moments momentum is the main play right now. Bunds are still above 148 although they have come off quite a bit lately, but the 1.1% yield on the Bund isn't stopping the upward momentum. It is likely that it will remain around these levels till September expiry in my opinion, unless we start getting higher inflation numbers.
Netflix is a prime example, its run up almost 100% in the past few months, and has an inline earnings report, yet it still edges further up in after hours trading. Now you would have thought the big run up would price in an inline number, doesn't seem like it, maybe the 100% move up was pricing in a miss, so the fact it came inline was a good thing. Either way this cheap money is just pushing Equities higher, Bunds higher, Treasuries higher, pretty much everything is going higher apart from the agricultural products which have been taking a battering of late.
Lot of data out this week as well as earnings reports so this might provide a lot of BTFD (Buy The Fucking Dip) opportunities, as the only strategy that is working well is to buy on any down tick.
On the Spread front, generally volumes are very low, so trying to scalp during moments momentum is the main play right now. Bunds are still above 148 although they have come off quite a bit lately, but the 1.1% yield on the Bund isn't stopping the upward momentum. It is likely that it will remain around these levels till September expiry in my opinion, unless we start getting higher inflation numbers.
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