The mysterious GBP

2 quick things this morning. Correlations are kinda broken down, with Gold, Eur/Usd, Oil and stocks all going different directions from each other. The standout move has been the GBP. SFOT is aware that a lot of macro type traders/investors are leaning short and feeling the pain. And it has only given back a mere figure after a negative outlook by S&P on UK debt. Perhaps a short term punt towards 1.60 is worthwhile on this pullback, given that such negative news cannot stop this pair from going lower.


This week has already turned out to be an awesome week in terms of price action in SPX, and those sitting on the sideline waiting for the week to end won't have to wait long. While SFOT has bitten the bullet in his short time spread structure in crude, he still holds on to a short position in CLz0, which has seen him benefit from a strong curve in the prompter end. Target for z0 is now $65. He will add another unit to this position if it trades close to $70 again.

With respect to the DOEs yesterday, it was a mildly bullish set of number as total stocks drew, especially on a 4 week basis, however SFOT does not know that falls into the 'other oil' component which has seen a 13.7mio bbl build over 4 weeks. Perhaps the fall in gasoline crack spreads yesterday suggest these are some odd blending type component etc. Whatever the case, SFOT will use this dip to buy into Rbob N9 cracks spread for reasons detailed yesterday.