Business

Exceprted from One River Asset Management's Eric Peters,

“We have created new tools to determine whether an economy may be pursuing foreign exchange policies that could give it an unfair competitive advantage against the United States,” announced the Treasury, late Friday.

 

“China, Japan, Germany, and Korea will be closely monitored as a result of a material current account surplus combined with a significant bilateral trade surplus with the United States."

 

Over the past 15 weeks we have documented one of the more curious indicators hinting that at least the "smart money" (hedge funds, institutions and private clients) have refused to jump on board the market rally as a result of what is now a record 15 consecutive weeks of selling into the market rally as per Bank of America client data.

Now, according to the same Bank of America, there is "Another sign that Wall St doesn’t believe the rally." This is what BofA equity and quant strategist Savita Subramanian has to say:

In the aftermath of the recent Valeant and Allergan stock price fiascoes, one month ago we showed that when it comes to 2016 hedge fund performance, it has been an abysmal year for the "smartest money" - something even Warren Buffett touched upon during the weekend - primarily due to the residual clustering effect as over the years hundreds of hedge funds ended up being long the same handful of stocks following numerous self-reinforcing "idea dinners" and quasi-collusive attempts to push up stock prices with coordinated buying.

Submitted by Rakesh Upadhyay via OilPrice.com,

Ship tracking data from Bloomberg shows that 83 supertankers carrying around 166 million barrels of oil are headed to China, which has stockpiled an impressive 787,000 barrels a day in the first quarter of 2016 - the highest stockpiling rate since 2014.

While the world was speculating about oil prices plunging to $20 and $10 per barrel, China was busy stockpiling its reserves.

A lack of intervention in the Yen and strength in EUR have combined to weigh on the US dollar. Bloomberg's USD Index is back at one-year lows as, while overnight chaos sent stocks higher, it has driven investors into the safety of bonds (Treasury yields down 2-3bps) and precious metals. Gold topped $1300 and Silver $18 as EURUSD pushes above 1.1500...

USD Index getting clubbed..

On the back of EUR strength...Topping 1.15 for the first time since August

Gold tops $1300...