Below extract from this a.m. edition of “Sight Beyond Sight”, the global-macro strategy insight courtesy of Stamford, CT-based, macro strategy “think tank” Rareview Macro LLC

Blood on the Streets Provides Counter-Trend Trading Opportunities
• Our 30,000 Foot Takeaways
• Model Portfolio Update: Closed EUROSTOXX and Dow Jones Index Short
• Model Portfolio Update: Opened Long S&P Structure
• Model Portfolio Update: Opened Eurodollar Interest Rate Steepener
• What Makes the Bounce Durable?
• Trading the Bounce
• US Equities Risk Profile for Next 48-Hours
• Watch List: Sugar, BRL/JPY and Nickel

Blood on the Streets Provides Counter-Trend Trading Opportunities

Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.” Since he ended up as one of the wealthiest men in the world at that time, he probably knew what he was talking about.

The objectives we laid out for risk assets have largely materialized. We would humbly point out that we were able to navigate these waters in the model portfolio fairly successfully, losing less than ~35 basis points on the week so far. With our large outperformance it is our intention to take advantage of the blood on the streets, as Rothschild would have done.

We wish we could say the same for others but our conversations are plagued with horror stories. Now, if we rub salt in someone’s wound or pinch the nerve of an investor that is just too bad. If that is you, then don’t read this edition. This is not us being cavalier. If we are wrong on some views or ideas we will keep an open mind and change our opinion, and will then simply reduce risk and move on. Continue reading →