Sam Shames

Let’s talk about the yield curve. What is it? Yield curve is a visual representation of the “spread” or difference between government bonds of different maturities. For example, if the 10yr bond has a rate of 2% and the 2yr bond has a rate of 1% that would mean the 10y/2y spread is 1%, or … Read more

The U.S. Dollar has been very much in focus over the past couple of months. Traders believe that the Fed’s easing policies may have a negative effect on the Dollar moving forward. It won’t, and here is why. All currencies are traded as relative value, meaning that in order for the Dollar to fall another … Read more

Let’s review the big news of the week, specifically, the Fed and the ECB both trying to out-dive the other. On Tuesday, we had Mario Draghi essentially front-run the Fed on Wednesday by stating that the ECB was very open to lowering rates and additional asset purchases. What does this mean? Well, it means that … Read more

Let’s go back to December 2018. The market was rapidly falling, the fear was palpable, there was blood in the streets … and then what happened? The Fed capitulated on their rate hike schedule. The market cheered and rallied from a V-shaped bottom back to the previous all-time high. Everyone likes a rally, but let’s … Read more

2019 began just as everyone predicted, the Fed capitulating on rate hikes for the year and even hinting that a reduction in rates was possible. Of course, we’re only kidding as many traders were caught wrong-footed by the quick change in sentiment.

As we change the calendars to 2019, it is important to look forward to the next year to see what opportunities and challenges face the markets. We see 2019 as a year fraught with landmines of volatility; however, volatility is the lifeblood of trading so we want to be prepared for what may come. We … Read more