It appeared markets were going to rally this morning but that turned out to be nothing more than a ruse. There isn’t a lot of decisive action, other than some bidding up in the energy and general commodity space. You get the sense that, in spite of the downside reversal in natural gas, that the commodity trade is back in play. The kicker is, of course, the ongoing crisis of energy in the EU. It is such that — a polish fertilizer producer is shutting down operations due to high natural gas prices.
We also heard word that a German aluminum company will HALVE output due to high natty.
This all bodes well, I think, for American fertilizer and aluminum companies — like MOS, NTR and AA.
Natty reversed lower today after Freeport LNG announced they’d resume production in November. That news item is a non-event, but markets will market.
I like higher bond rates here, so I am short bonds via TMV. I like oil, natty, fertilizers and maybe SOFI (don’t ask why). I am also heavily hedged via FAZ and SARK and have a general good sense of this tape and feeeeeeeeel like I am on control.
My cash is at 30%, which will be allocated by the end of day.
If you enjoy the content at iBankCoin, please follow us on Twitter
