Article Published at 11h41
Clients of Unum Capital are recipients of research insights that aim to (1) help identify trading opportunities and (2) help manage risks.
Here are 3 trade ideas that have helped clients position correctly and profit from the subsequent market developments.
(1) SELL/SHORT USD/Japanese Yen (USDJPY)
The so called 'YEN Carry Trade' is unwinding. In short, this where market participants borrow cheaply in Japan to fund trades in more expensive currencies. My idea looked for an opportunity to short/sell the US Dollar/Japanese Yen currency pair at or around the 160 level.
Initially, I discussed the potential for downside in this post on 26 June. This view was informed by the real-time reading on my Tactical Trading Guide (chart and data reading at 14h21 on 26 June). https://www.unum.capital/post/fx-usd-jpy-wednesday-26-june-2024
In addition, the slide below highlights my view in my report on Monday, 01 July 2024
The chart below highlights how the USDJPY currency pair has sold off since the view was communicated.
(2) SHORT/SELL NASDAQ 100
The unwind of the 'Yen Carry Trade', along with weaker-than-expected technology earnings, economic growth concerns, sector rotation, as well as concerns over Berkshire Hathaway reducing their Apple stake, has been a headwind for the Nasdaq. On 20 June, my idea looked for lower levels on the index.
(3) BUY/LONG Volatility Index (VIX)
(+369% at today's highs. Idea at 13.01. Today's high = 61.03)
As a result of the above market developments (stronger Yen weaker global indices, including the Nasdaq), volatility has spiked, significantly.
Chart as of 14h25 today.
Clients of Unum Capital are recipients of research insights that aim to help identify trading opportunities and help manage risks.
To become a client and regular recipients of this research, e-mail lester@unum.co.za.
To become a client, contact the Unum Capital Trading Desk today (email tradingdesk@unum.co.za or call: 011 384 2923
Lester Davids
Analyst: Unum Capital
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