We noted yesterday that the recent trend of increased volumes into Eurodollar future out-months was 'odd'...
But the sudden surge in interest in Eurodollar calls (vs puts) suggests more than just a few prop bets are being placed on the fact that The Fed does not hike rates in June.
One month ago, in his latest letter to clients, Horseman Capital's Russell Clark revealed a new "investing" strategy using ETF flows as a catalyst for positioning and bets.
Citing the transition from active to passive as a catalyst that makes markets increasingly more inefficient, something One River's Eric Peters noted in a recent weekly note, Clark repeated a lament made by many short sellers, stating that there "are complaints from some quarters about it being harder to short sell as flows of money push up stocks."
In the past week, Goldman's warnings about an imminent market correction have been coming out on almost daily basis.
As we’ve been outlining over the last few weeks, the auto-loan industry is increasingly looking like Subprime 2.0: the needle that will pop the credit bubble.
Since 2009, roughly 1/3 of all new auto-loans have been subprime. That in of itself is bad, but we are now discovering that the industry in general has a problem with fraud (shades of the Housing Bubble) as well. Remember, the real Housing Crisis was when contagion spread from subprime mortgages into the prime space. It looks as though there might be a similar situation in autolending today.
Two weeks ago - as of April 28 - we presented readers with a striking statistic from Goldman Sachs, showing just how much breadth in the market has collapsed and how dominant a handful of large cap companies have become in terms of both overall profitability and market impact: