Is Saudi Arabia Ripe For A Cultural Revolution?
"No explanation was offered as to how any of these targets could be realistically achieved within their timeframe." Or any explanation at all really. The quote excerpted above from Foreign Policy references Saudi Arabia and the kingdom's "Vision 2030" which, if you’ve closely followed Ryadh's descent into the red ink budget abyss, you know it…
Is The Risk Greater Than the Market is Showing?
TheoTraders look beyond the noise of the market into what can be called second level thinking. If the markets are priced to efficiently and volatility drop to zero is this the safest time or the most riskiest time to buy? The casual thinker may say the safest. A TheoTrader would say the riskiest. A TheoTrader…
Goldman Warns Big Drawn Down On The Way
Remember last year, when Jamie Dimon jumped on the bond market liquidity bandwagon and warned that harrowing bouts of flash crashing madness like what unfolded in October of 2014 with USTs were likely to happen with increased frequency? As a reminder, here's what he said: "Treasury markets were quite turbulent in the spring and summer…
Is This a "Time Recession"?
TheoTraders understand that it doesn't matter what we think the market should do we must trade the market that's in front of us. For the last year and half many investors have been looking for a healthy correction. A healthy correction resets the market and allows new money to come in. However, markets have been…
An Eerie Calm Hangs Over The Dollar, One Bank Warns
Last month, in a brilliant presentation, Citi’s Matt King outlined “the polarization principle” and how it relates to politics, the economy, and markets. The idea is that as interconnectedness and correlations increase, heterogeneity naturally decreases. When that happens, the incidence of extreme outcomes in politics, society, and markets goes up. Here’s how the bank depicted…
Signs Of Global Growth Slump Linger, But Stocks Couldn’t Be Happier
Late last month in “Pondering A Slow Growth World: Have We Entered A New Era?” we questioned whether perhaps policymakers are effectively pushing on a string. That is, is it possible that something short-circuited post-crisis and, as WTO chief economist Robert Koopman put it last year, “that the timing belt on the global growth engine…
AMZN Bearish Trade Setup Alert
Another bearish trade setup alert for TheoTraders. TheoTraders look for a 1 and 1 risk/reward ratios where you have an edge. In tonight's video we will look at one such trade set up. TheoTraders should take a moment to review this trade to determine if this is an actionable trade for you. TheoTrade members got…
No One Knows What’s Going On Anymore
When you become so wedded to a market narrative that it becomes gospel, you are probably about to make a financial misstep. I’ve been a skeptic for years about the sustainability of what are increasingly artificial markets. Markets that rely for their viability, on a bid for equities that comes from somewhere no one really…
It May Be Time To Stop Blaming Central Bankers
“My message will be largely favorable, although recent developments have been mixed.” That’s it ladies and gentlemen. We’ve officially reached the nadir of Fed communication. Janet Yellen is now telegraphing what she is about to say in a speech which is itself ostensibly meant to telegraph something else. It’s a kind of bizarre evolution wherein…
Time to Short Bonds (again)
TheoTraders look to take advantage of discrepancies in the market. When you see two products that are suppose to move in the opposite direction of each other correlated a TheoTrader knows one product has to return to normal. In this case Bonds & Stocks are both near all time highs. A TheoTrade knows something has…