17th of May

17th of May

I feel like I hit the jackpot moving to Norway in 1986!  Today is Norway’s national day and the locals will be dressed up in national costumes, watching parades and spending time together celebrating with good food and lots of ice cream.  It is a proud country and has been a wonderful place for my family to grow up.  Congratulations Norway!

The closely watched 10 year U.S. yield is through 3.10, highest level in 7 years and stocks are in holding pattern.  The FX markets are relatively quiet although the USDJPY cross that we are positioned in is trading 110.50, the weakest level for the yen in over 16 weeks.  The Turkish Lira continues to weaken, now at 4.4473 vs USD.  Gold continues to struggle trading at 1289 while Brent Crude oil increased to 79.34, highest price in more than 3 years.

This would all suggest that global growth is well and good, Fed has control of the hiking process, market volatility is contained given all of the possible flashpoints in the world ranging from market fears of inflation, possible trade wars, Geo-political issues, rising oil prices, Italian politics possible breakdown of Korea summit talks……….. (to name a few)

We stay with our current portfolio of trades while expecting the USD to continue to strengthen, Equity markets in range until we see break out we stay on sidelines, we look for oil prices to hold at these levels and test higher in the short term, while interest rates globally creep slowly higher as long as we avoid growth scares in relation to market expectations.

Closer to home the Norwegian kroner is trading in a range:  will add to short if breaks support at under 9.48 level.

EURNOK chart

USDJPY is holding and we see the 109.80 to 110.00 level as key support after testing yesterday

TickerDate OpenedEntry PriceStopTarget PriceCurrent Price
Long XAUUSD(Gold)26/4131712801365 and 14001289.30
Short EURNOK9/59.59809.72509.409.5517
Long VXM814/514.6013.5016.0014.80
Long USDJPY15/5110.05109.50111.50 then 113.00110.50

Visit our Position Tracker to look at all of our realized trades: http://www.mintermarkets.com/position-tracker/

– Mark W

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