Isn’t it amazing how the market goes up every day, in spite of the political turmoil?
There are two main pillars to today’s rally: banks and commodities. Both of these sectors are, in a sense, Trumpion plays. But I don’t think they’re rising because of him. Banks are rising thanks to rising yields and widening spreads. The 10yr is up nearly 7bps to 2.32%, while the 2 yr is up just 3bps to 1.394%. That’s a widening of 4bps in the yield curve in one session — pure profits for bankfags.
Take a look at the winship.
SIVB +3.6%, C +3.1%, BAC +2.7%, SCHW +2.3%
The kinetic action is in the commodity sector today. This rally is being sponsored by China, courtesy of FCX and CAT earnings beats. The sectors are up nearly 4%, and both copper and WTI are up more than 3% for the session. However, I’d advise you to tread carefully with this trade. Last year in July, FCX gained 17%, only to cede those gains and more, enduring a -20% drubbing in August.
Nevertheless, traders are swimming naked with each other today, enjoying the scenery, sopping up oversold commodity stocks. As is the case with all sharp rallies, short squeezes happen. Right now, here are the standouts amongst stocks most heavily shorted in the commodity sector.
CENX, MTDR, RIG, AKS, CRC, CLF and ATI.
That is the usual shit, isn’t it? As soon as commodities break out, all of the resource misfits pile into RIG, CENX, ATI, CLF and X — only to get thoroughly dispatched later on in the week.
Retail is bouncing nicely too, but I rather not even mention that industry.
Tech is taking the day off, a well deserved one at that. Maybe it’s due to GOOGL earnings or maybe the sector is enduring a little profit taking. Either way, there’s not much going on there, aside from losses in MU, GOOGL, SHOP, VEEV and SANM.
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XIV is going 100 rolling
Been trading since 2010 and this environment is way, way up there in the craziest I’ve ever seen it. If you’ve done anything other than buy $SPY or $QQQ on 150% leverage every day, or sell $VIX with leverage everyday, you’ve been underperforming. Would like to say those are the trades I’ve taken, but alas, no.
since 2010???? woah woah woah back it up *beep* *beep* *beep* (extra costanza)
That was a ‘trading since 2010’ as in – around long enough to see a thing or two, but yeah not around all that long vs some.
No. A Gigantic turd transfer is going on. Buy Vix
Everybody that knows me already knows I went +13.75% today on SPY 247 September calls that I bought yesterday. Bull markets make new highs. This is all the trading thesis that you need to know. Now go buy the fucking dip.