Recap 9-17-12: Reflation Trades Looking Heavy


Speculative positioning in Gold, Silver, Oil are all at high levels following FOMC, so some additional profit taking looks likely.


  • Major Japanese firms have shuttered factories in China following an outbreak of protests in what is being called China’s worst outbreak of anti-Japan sentiment in decades
  • According to DJ, at least 4 finance ministers objected to the 1/1/13 projected start-date for the new EU bank regulatory framework. Germany continues to oppose having the ECB placed in charge of all banks in Europe

Upcoming Data:

  • Tues: UK CPI, German Zew, NAHB Housing Index, Dudley Speaks
  • Wed: BoJ, BoE Minutes, US Housing Starts, Existing Home Sales
  • Thu: EU PMI, US Jobless Claims

2 thoughts on “Recap 9-17-12: Reflation Trades Looking Heavy

  1. I’m likely not nearly as sophisticated an investor as yourself or many that read this blog, but I was wondering if you could clarify what you mean by “speculative positioning” in your commentary. How does one quantify the difference between speculative and non-speculative positioning?

    Love the blog btw, thanks.

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