POLITICALLY THEMED TRADE MUSING
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Having successfully made all significant wokes’, liberals’ and defenders of democracy heads’ explode, the only minor qtn now is how they will send joe packing. Regardless of the method , I don’t expect it being as affecting market re-pricing reaction as the reactive re-pricing of joe’s replacement.
I suspect the “saving democracy as we know it” theme will be somewhat toned down by the “replacement of joe” and markets will likely try to figure out the economic, fiscal and legislative effect of the pivoted policy. One thing I do not see being compromised is the money flow into the veins of the military complex – which remains BoD.
Nike – NKE – Just Do It
Nike took a dive
Nike’s Warning Shakes European Footwear Stocks
Nike on Thursday said it expects revenue to be down in the mid-single digits for the year ending May 2025, blaming uneven consumer trends in the European, Middle East and Africa region, and planned declines of classic footwear franchises given fourth-quarter trends. Analysts polled by FactSet expected revenue growth of 1.4%, to $52.11 billion.
Closed a couple of dollar shorts from prior when Aussie paused at 6680 in UsdJpy 160.30’s, for example, and some considerable guns suddenly went off. Surely there is widespread portfolio adjustment transpiring this morning. Bottom line is no market shock in the data but cause for adjustments in a lot of offices.
Big uposide miss (stronger) in Chicago PMI … yawn reaction… quarter ebd flows the focus
USDJPY 4 HOUR CHART – OUTSIDE DAY
There appears to be some unwinding of short JPY positions into quarter end. I am not privy to the follows but the dip in stocks early on suggests maybe some profit taking on short jpy-long stocks carry trades.
Whatever the case, it would need to close below 160.39 for an outside day key reversal day although I have heard mixed analysis whether this works well in fx.
So far, 160.27 support has been tested. 160.00 is probably more important than any technical level.
Back above 160.50-63 would be needed to cool the risk.
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