MM 5 January 2021

 Quotes

If G Orwell studied dystopias governed by the stick, Huxley showed that pleasure and distractions ("bred and circus") or carrots can be just as  coercive if not more so

Markets & Macro news

What to expect in the next few months?

A seasonal post election profit taking

A further dollar weakness as Biden promise more stimulus

A more lockdowns for the next few months as vaccine's distribution is not as fast as expected and start revealing more side effects that had been detected by fast tracked trials

Too much gamma exposure bodes badly for equities short term. Gamma is the vol of vol and a measure of convexity of a derivative value versus the underlying. Gamma traders tend to be short vol to produce tactical yield enhancement. It works until it unwinds, as seen in recent market crashes 

Especially as Millenials are still piled in massively overvalued growth stocks

And as markets looks overstreched

So much in fact that wise men who have seen it all are starting to ring the alarm bell

Meanwhile, metals are telling the truth about what’s truly going on 

Themes, Sectors & Corporate news

Teledyne acquires Flir Systems. Surveillance economy theme.

MGM acquires Entain PLc. May herald gold rush in Online gaming theme, as US about to legalise it.