MBCC TH 24th January'23 - "What will China do when they return next week? What does this mean for the massive $EEM/$SPY trade? What are the physical markets saying in Iron ore, Steel, and Copper?"

Commodity markets move entirely on their physical demand/supply balances, but the macro and liquidity does tend to taint the moves as well. It is important to break down the secular case from the cyclical and especially the technical. We use our MBCC models to look at when all 3 stars align, signal from physical markets as well as macro and technicals - that is when we know the moves make sense. Anything else is a discrepancy, or an opportunity rather.

Today we describe what our forward looking cross asset models are saying about the Emerging Markets EEM 0.00%↑ trade here vs. S&P 500 SPY 0.00%↑. It is all anyone can talk about these days, putting money in the laggard EM and Chinese markets, are they right or late to the party?

The market is like a matrix, a story unravelling across multiple markets and factors, our aim is to unravel the mysteries and determine what trends are being priced in, and how far they are from consensus, hence the tactical trading opportunities. At the end of the day it is all about earnings.

Sign up as we discuss Copper, Iron ore, Dollar, Credit, Liquidity and tie it back down to what it means for asset classes and trades going into February.