Brexit: Fantasy vs. reality

In Free by Cam Hui

I am seeing an unusual level of rising anxiety over the political implications of Brexit. Last week, Stratfor published a report entitled “Brexit: The First of Many Referendum Threats to the EU”, which detailed the threats of additional referendums to the future of Europe. Jim Rogers, writing in the Daily Reckoning, also painted a dire picture of the world after …

Brexit panic: A gift from the market gods?

In Free by Cam Hui

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The “Ultimate Market Timing Model” is a long-term market timing model based on research outlined in our post Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend Model is an asset allocation …

Brexit: LTCM or Lehman?

In Free by Cam Hui

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The “Ultimate Market Timing Model” is a long-term market timing model based on research outlined in our post Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend Model is an asset allocation …

Brexit fallout watch

In Free by Cam Hui

Well, my Bremain call didn’t go so well (see Positioning for a Bremain result). As I write this, the BBC has called the referendum in favor of Leave by a margin of 52-48. GBPUSD is down about 10% and Asian stock markets are down 2-4%. If you were correctly positioned for this outcome, congratulations, but don`t get overly excited about …

Positioning for a Bremain result

In Free by Cam Hui

Mid-week market update: Even though the polls show the two sides running neck and neck, my inner trader is positioning for a Remain result in the UK referendum for the following reasons. Polling internals indicate momentum towards Remain; Bookmaker odds overwhelmingly favor Remain over Leave; and Market anxiety is rising – so a “buy the rumor, sell the news” position is …

The Brexit Pandora’s Box

In Free by Cam Hui

For my (mainly) American friends, file this under “why you don’t understand Europe”: The Vietnam War was a war that scarred the national psyche and dramatically changed the tone of American foreign policy for a generation. If you visit the Vietnam Memorial in Washington DC today, you will find roughly 58,000 names of fallen soldiers from that period. Now imagine …

How the S&P 500 can get to 2200 and beyond

In Free by Cam Hui

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The “Ultimate Market Timing Model” is a long-term market timing model based on research outlined in our post Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend Model is an asset allocation …

The VIX tail wagging the SPX dog

In Free by Cam Hui

Mid-week market update: What’s going on with the VIX Index? The VIX, which measures implied option volatility and a useful measure of “fear”, spiked dramatically on Monday. While SPX did fall, the magnitude of the decline didn’t match past VIX spikes. It prompted this tweet from Ryan Detrick:     Rob Hanna at Quantifiable Edges also observed that the combination …

What’s spooking the stock market?

In Free by Cam Hui

Mid-week market update: No, it isn’t just a more hawkish Federal Reserve that’s spooking the stock market. Stock prices were been falling before Fedspeak and the latest FOMC minutes sounded a more hawkish tone. The SPX staged a successful test of its 2040 neckline support of its head and shoulders pattern today. In fact, today`s action could be interpreted constructively as …

Updates on the Brexit, energy and SPX trades

In Free by Cam Hui

Mid-week market update: Rather than the usual mid-week market technical comment, I thought that I would present updates on a number of trades that I had suggested in the past: How to play the Brexit referendum (published February 29, 2016): Setting up for a trade? A possible generational low in oil and energy stocks (published January 20, 2016): Staying long energy Long SPX: …