|

How do traders want to be positioned for year-end?

Outlook

The stock and bond markets close at noon and it would be silly to imagine any major move today. Markets are open again on Friday and then there are three days before month-end next week.

How do traders want to be positioned for year-end?

We already know they want to be long equities and precious metals and short the dollar and crypto. The interpretation of that combination is lack of confidence or outright loss of confidence in institutions, especially governments. Consider how weird it is that the US reported GDP up 4.3%, implying the Fed will not be cutting rates again anytime soon, and the dollar did not gain on that outlook. On the scale of attractiveness, Trump was heavier than the economy.

Forecast

Markets are displaying a lack of confidence in government institutions, hence the flood into metals, and really like the whole re-regulation story that favors private institutions (think companies and stock markets). What can stop these sentiments and deliver a pullback is fear of the moves having gotten overdone. In other words, positioning rather than news stories or data. This is tricky because various things have been overbought for some weeks or months without delivering a “normal” pullback.

That doesn’t mean a pullback is not in the cards but only a lily-livered are selling ahead of evidence, having gotten burned at various points all year.

So, it looks like we can expect a lower dollar and higher gold/silver/platinum/copper well into the new year. Then watch out, but remember, we are among the lily-livered.

Tidbit: We have a peculiar dichotomy between what people say they feel about the economy—it’s awful—and what they do—spend like drunken sailors.

A Gallup poll “…finds 24% of Americans satisfied and 74% dissatisfied with the way things are going in the country, which is unchanged from November but more negative than all other readings since January. As recently as May, 38% of U.S. adults were satisfied. Satisfaction levels remain slightly higher than at the end of the Biden administration.

“Declining satisfaction has coincided with worsening views of the economy in recent months. Gallup’s Economic Confidence Index currently sits at -33, which is down 10 points from October and 19 points from June, and is the lowest it has been since registering -35 in July 2024. The index summarizes Americans’ evaluations of current economic conditions and their perceptions of whether the economy is getting better or getting worse. It has a theoretical range of -100 to +100.”

We know not to trust polls but golly. Dems think this means the midterm elections belong to them next November.


This is an excerpt from “The Rockefeller Morning Briefing,” which is far larger (about 10 pages). The Briefing has been published every day for over 25 years and represents experienced analysis and insight. The report offers deep background and is not intended to guide FX trading. Rockefeller produces other reports (in spot and futures) for trading purposes.

To get a two-week trial of the full reports plus traders advice for only $3.95. Click here!

Author

Barbara Rockefeller

Barbara Rockefeller

Rockefeller Treasury Services, Inc.

Experience Before founding Rockefeller Treasury, Barbara worked at Citibank and other banks as a risk manager, new product developer (Cititrend), FX trader, advisor and loan officer. Miss Rockefeller is engaged to perform FX-relat

More from Barbara Rockefeller
Share:

Editor's Picks

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD looks apathetic around 1.1530

EUR/USD reverses Wednesday’s downtick and trades with modest gains in the 1.1530 region following the end of the NA session on Thursday. The pair’s tepid advance comes on the back of the absence of clear direction in the US Dollar despite tensions from the Middle East appear far from alleviated. Later on Friday, investors are expected to monitor the the releases of another revision of GDP figures in the Euroland, US Retail Sales and the preliminary U-Mich gauge.

Gold remains on the defensive below $4,350; downside seems cushioned

Gold trades below $4,350 during the Asian session on Friday and looks to extend the previous day's pullback from the highest level since June 5 as the US-Iran standoff continues to underpin the US Dollar's reserve-currency status. However, reduced bets for an immediate Fed rate hike, amid signs of cooling US inflation, should act as a tailwind for the non-yielding bullion and help limit deeper losses.

Dogecoin reclaims $0.07 support as whales step in
Dogecoin (DOGE) edges above the daily open, trading above $0.070 as of Thursday. While this uptick offers a positive signal, DOGE continues to trade within a broader bearish context, down approximately 12% from its July peak of $0.079. Still, should the $0.070 support level hold, the mild recovery could gather pace, targeting resistance at $0.080 and potentially the key $0.100 threshold.
Why credit markets aren’t pricing $570B of AI debt

Forecasts put global artificial intelligence related debt issuance near $570 billion this year, with roughly $236 billion of it priced by the end of May at four times the prior year's pace. Data centre securitisation alone has gone from about $4 billion a year through 2022 to roughly $10 billion in each of 2023 and 2024, and then $27 billion in 2025.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.