Wed Sept 123 2012 8:37 AM CST
A few thoughts for mid week. From this morning's WSJ
Page B5 The cracks are starting to appear in the China Boom. Burberry reports the worst same store sales figures since the doldrums of the financial crisis. The announcement sent the stock down 21% yesterday. It is of course typical that high end luxury companies would expand their presence after the top of the SEEC Shanghai Index in Fall 2010.
Page C 4 Natural Gas Rallies 6.4%. Most readers thought we were wrong in forecasting stronger natural gas prices. We are long FCG.
Euro hits Four Month High AS the Dollar Sinks Broadly Again a falling dollar and falling bond prices will fuel the move back to risk on assets. TLT is down 1.47 this morning. Yesterday we suspected that the outcome for Thursday's FED meeting was already in the cards. Like the rest of Washington, the FED is a collander of leaking information and the sell off in TLT today speaks volumes about what is expected tomorrow.
I do find it a bit odd that crude oil seems to be lagging the group but it topped last in 2008 and may be on its way to a repeat performance in 2012-13.
By the way I am now long 63 TLT puts mostly Octobers with strike prices ranging from 119 - 125.