Daily Analysis - 02/05/2018
Those blessed 4 times per year when trades come rolling along that are unusually reliable and predictable. Just so there isn’t any misunderstanding there are NO sure things in the capital markets and sometimes even the earnings reports trades simply do not work out as expected but far more often than not they do and yesterday was a fine example.
BP had a terrific quarter and the stock price is rising because of it. BP has seen a rising stock price since mid-March therefore this trade is suited for a longer time frame. In order to avail ourselves of trades that play out over longer periods of time we extend the stop orders on the positions. This will allow the trade to “breathe” allowing it to last longer before hitting an order.
The CAC is up today and we foresee a continuation of the trend that has been in place since the end of March. The CAC has been a strong exchange since the markets stopped falling after the February weakness showed up. The French market is getting its stride in part due to the fact that the Macron administration is seeking to kick the dust out of a tired and coddled labor force.
The Yuan continues to weaken against the Greenback. Continues…let’s keep our perspective: The Yuan has gained 9.98% in value since the beginning of 2017. It is currently making only the 3rd correction in that long slope. Nonetheless it is a real trend with legs and therefore worth keeping an eye on.
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