Ray Dalio Says Bridgewater Has No Net Short Bet Against Stocks; Oil rally pauses as hedge funds await trade talks

Nov 25, 2019

The Spread: The CEM Gets SA-CC’d

This week on The Spread: the CEM is succeeded by the SA-CCR after a final ruling by the Fed, the FDIC, and the Office of the Comptroller of the Currency (the other OCC); MIAX launches SPIKES futures.

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Lead Stories

Ray Dalio Says Bridgewater Has No Net Short Bet Against Stocks
Katia Porzecanski – Bloomberg
Billionaire Ray Dalio said his macro hedge fund firm Bridgewater Associates doesn’t have a net bet that the stock market will fall.
A Wall Street Journal article published earlier Friday is “wrong,” Dalio wrote in a LinkedIn post. “I want to make clear that we don’t have any such net bet that the stock market will fall.”

****JB: Here is The Wall Street Journal article referenced above. Thanks to our readers who emailed me about Dalio’s LinkedIn post refuting the article. Unfortunately, Dalio’s post came as we were going to press, so we missed it on Friday.

Oil rally pauses as hedge funds await trade talks
John Kemp – Reuters
Oil prices ran out of momentum last week as hedge fund managers stopped buying and realised some profits following a strong rally since the start of October.
Hedge funds and other money managers sold the equivalent of 29 million barrels in the six major futures and options contracts linked to petroleum prices in the week to Nov. 19.

Funds sell more CBOT corn and likely erase bullish soybean bets
Karen Braun – Reuters
Uncertainty still lingers over the exact size of the U.S. corn and soybean harvests and South America is in the early stages of its growing season, but speculators appear comfortable with global supply levels as they continued selling Chicago-trade corn and soybeans last week.
In the week ended Nov. 19, hedge funds and other money managers increased their net short in CBOT corn futures and options to 123,530 contracts from 110,921 a week prior, according to data published Friday by the U.S. Commodity Futures Trading Commission.

Herd of Pound Bulls Sees Currency’s Potential Unleashed in 2020
Charlotte Ryan and Liz McCormick – Bloomberg
The chorus of bullish voices in favor of the pound is growing as investors become more confident the ruling Conservatives will win next month’s U.K. election. Funds are increasingly betting on the currency to strengthen as Boris Johnson’s party extends a lead against left-wing Labour in polls for the Dec. 12 vote. BlackRock Inc. and Goldman Sachs Group Inc. are among those on Wall Street touting the pound as a top trade for 2020 if he can win and push through a Brexit deal.

Regulation & Enforcement

NYSE American LLC Letter of Acceptance, Waiver, and Consent No. 2019-01-00008
NYSE American LLC
Re: Integral Derivatives, LLC, Respondent

NYSE Arca, Inc. Letter of Acceptance, Waiver, and Consent No. 20170531290-03
Re: BMO Capital Markets Corp., Respondent

NYSE Arca, Inc. Letter of Acceptance, Waiver, and Consent No. 20170531290-03
NYSE American LLC
Re: BMO Capital Markets Corp., Respondent


OCC Names Maria Chiodi with Credit Suisse Securities (USA) LLC to Board of Directors
OCC, the world’s largest equity derivatives clearing organization, today announced that Maria Chiodi with Credit Suisse Securities (USA) LLC has joined OCC’s Board of Directors as a Member Director. She will serve on the Governance and Nominating Committee. http://bit.ly/2DhLhuy


PutWrite Strategies Offer a Buffer Against Losses
Scott Nations – Nasdaq
The Nations NDX PutWrite Index has recently made a series of all-time highs as the underlying Nasdaq-100 index has rallied to its own all-time highs. PutWrite strategies tend to move in the same direction as the underlying asset so this series of all-time highs would be expected for a Nasdaq-100 PutWrite strategy.


Are we about to sleepwalk into another market crash?
David Chapman – Born2Invest.com
Is the market really going to continue to grow to unprecedented heights? Or is the house of cards about to collapse? Arguments are there for both. The average boom lasts twenty years and we’re just ten years in so history dictates a bright decade ahead. Yet there are warning signs that we might just be in for a surprise bust that catches the global community off guard.

Here’s the real difference between women and men when it comes to stock-market investing
Andrea Riquier – MarketWatch
How do female mutual fund managers compare to their male counterparts? When it comes to representation, women have a woefully long way to go, but their returns, and the amount of risk they take, are roughly comparable to men’s performance. Where things get a bit more interesting is in the types of bets women make.

Outsourced Trading Goes Viral
Michael Mollemans – TABB Forum
More than 20 years after its introduction, ‘outsourced trading’ has become an umbrella term, with no single operating model. As the service options mature and governance considerations increase, however, buy-side firms searching for an outsourced trading partner are often left with many unanswered questions. TABB Group senior analyst Michael Mollemans sheds light on this rapidly growing segment of the brokerage industry.

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