22 Jul 2013
Flash: Summertime trading – Societe Generale
FXstreet.com (London) - Kit Juckes, Global Head of Currency Strategy recognised the typical climates in the summer months for the markets and quotes an article in the FT which he enjoyed readings.
Key Quotes:
“I liked John Authers' weekend analysis of it all in the FT:
"Historically, markets tend to maintain the momentum they had entering the summer, at a slow pace. Excitement, if any, comes as people return to their desks in September, and reaches a climax in October – the month of famous crashes in 1929, 1987 and 2008. In each of those years, stocks had risen in the summer...complacency and low liquidity leave summer markets open to extreme falls in the event of a surprise.This summer, there are few obvious risks of such a surprise".
“With this in mind, the question is where to fight the corrections: I like to buy USD/JPY around here.”
“I like to stay long credit for a further summery ground tighter. I like to buy USD/CHF pretty much here too”.
“AUD is a sell but not yet. Treasuries are also worth watching from the sidelines as a break lower in yields isn't impossible in the data vacuum. The eco-Cassandras who deny US economic recovery are finding some listeners”.
Key Quotes:
“I liked John Authers' weekend analysis of it all in the FT:
"Historically, markets tend to maintain the momentum they had entering the summer, at a slow pace. Excitement, if any, comes as people return to their desks in September, and reaches a climax in October – the month of famous crashes in 1929, 1987 and 2008. In each of those years, stocks had risen in the summer...complacency and low liquidity leave summer markets open to extreme falls in the event of a surprise.This summer, there are few obvious risks of such a surprise".
“With this in mind, the question is where to fight the corrections: I like to buy USD/JPY around here.”
“I like to stay long credit for a further summery ground tighter. I like to buy USD/CHF pretty much here too”.
“AUD is a sell but not yet. Treasuries are also worth watching from the sidelines as a break lower in yields isn't impossible in the data vacuum. The eco-Cassandras who deny US economic recovery are finding some listeners”.