Today at 8:30am we’re set to receive a data deluge – including CPI, building permits and housing starts, that will make or break the core thesis for my two largest trades: short Gold and short housing. Short Gold is a contrarian trade, based on the market’s unidirectional positioning and my belief that markets are missing the boat entirely […]
NFP came in weak, as expected. On the release, $GC1! spiked, $DX1! dove and $ES1! tanked. Again, all par for expectations. That said, no sooner than 6 minutes after the release, $DX1! was already trading higher than pre-NFP. Could that be a signal of capitulation on the bearish dollar trade? Yes, that’s a gutsy […]
No inflation, though…
Divergence between US equities and Gold, that is. I believe today’s switcheroo by the Fed will bring about a period of sustained divergence and the end – in the short-term, of Gold as a risk-asset.