MarketsMuse coverage courtesy of out takes from a.m. edition of commentary produced by global macro trading guru Neil Azous, principal of macro-strategy think tank Rareview Macro LLC.. Editors Note: Aside from the prescience of “Sight Beyond Sight” outlooks throughout the past year (including select/specific and since successful trade ideas i.e. FX, Commodities (e.g. gold) and equities, Rareview’s process is uniquely aligned with the fundamental thesis embraced by the very smartest investors re macroeconomic investing: “mitigate exposure to risk, capture alpha in a conservative way, and never stay married to a position, particularly when the herd of wannabees comes to the party just when it seems like the main course has been consumed and coffee and desert are just starting to be served.
Risk in Very Near-Term is a Euro Short Covering Rally…Closed Core Long US Dollar Positions
A Lot of Importance Being Assigned to this Weeks US Inflation Data
Federal Reserve Following Bank of England a Clear Talking Point
Model Portfolio Update – November 14, 2014 COB: +0.27% WTD, +0.70% MTD,+17.57 % YTD
A Euro exchange rate short covering rally is the greatest risk going into the end of the week. The speed and degree of that is yet to be determined but our expectation is the Euro-Dollar (EUR/USD) will trade above 1.27 and if the US CPI on Thursday disappoints many investors will find themselves in a very difficult position.
After getting long on the US Dollar before the consensus on July 3rd we have reduced 100% our long exposure this morning. The following updates were sent in real-time via Twitter:
Sold 1180 DXZ4 at 87.61.
Sold 100% of USD/CHF at .9590.
The combination of our outperformance, lack of inspiration and our confusion over where the market will go next are the main reasons for that decision.