Sales Trader
Summary: Divergence began to appear since last month as both XAU and HG looked to have bottomed out and make multi months swing highs but CL continued to decline making a fresh low for the year breaking the double bottom $75 this week.
My sales trading team members well and truly know that I am a fan boy of Cathie Wood whose flagship fund ARKK generated huge 149% return in 2020 but this year so far YTD return of -64% on the back of QT and challenging macro backdrop as real yield soared from -1% all the way upto 1.59%, highest since 2009. I remember this tweet from Cathie that flagged the inflation expectations by looking at commodities such as gold (XAU), copper (HG) and oil (CL) which were already on their way down after all three peaking in March 22 while CPI peaked later in July at 9.1%. However divergence began to appear since last month as both XAU and HG looked to have bottomed out and make multi months swing highs but CL continued to decline making a fresh low for the year breaking the double bottom $75 this week. On the other hand, silver (XAG) and iron ore (SCO) are also showing reversal to the topside with +32% and +49% respectively so in line with the recent house view from Steen, resurgence of major commodity strength may have already begun in the anticipation of China reopening.
Some findings
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Uncover the shifting focus in 2024's FX markets towards growth resilience and relativity, away from bond yields and inflation stories.
Embrace the metal revolution on the commodity market in the coming year, with a focus on gold, silver, platinum, copper, and aluminum.
The gloominess of geopolitical conflicts and the repetitive nature of political agendas. What else does 2024 hold in store for us?
The disheartening cycle of unresolved geopolitical conflicts, the rise of polarizing political parties, and the stagnation of productivity.
Understand China's political landscape in Q4 2023 and the impact on counter-cyclical initiatives, with a focus on the pivotal Q1 2024.
