Blind Squirrel Macro’s ‘Start The Week’ note is the weekly review of the BUSHY™ beta portfolio and updates on our ‘Acorn’ trades - anything from single stock ideas and thematic baskets to FX / Credit / Commodity ideas.
This note is also home to new trade ideas that may have been highlighted in The Drey (our member channel on Discord) or do not justify a full write-up via one of the weekly ‘flagship’ notes. For example, last week’s ‘STW’ involve a new ideas in the grains complex - those wheat calls are already +129%! This week, we look at yield sensitive exposures post Jackson Hole and ponder whether or not it may be time to get back into the uranium trade.
The ‘STW’ is delivered to inboxes at 7.30am EST on Mondays. Last week’s introduction report for the 🐿️ 20-for-20 was free for all readers. If you would like to join us on the rest of the journey, please consider becoming a paid subscriber. Click the button below to claim a 30% discount (worth $135) on an annual subscription. OFFER MUST BE CLAIMED THIS WEEK!
In the weekend flagship note, the ‘🐿️20-for-20’ portfolio journey continued as we assembled our shortlist picks among global financials. Check it out via the link below 👇:
Post Jackson Hole
Aside from some top level trolling (🎩!) of the robots by Warsh with the opening lines of his remarks…
… I think the new Fed Chair did just about enough to settle the bond vigilantes on Friday. As unlikely as it seems from a political perspective, the market seems to be happy pricing the remaining FOMC decisions of the year as ‘live’.
The words were not enough to snap the 10-year note out of their now well established downtrend. I think that long-dated yields need to see an actual hike before they start to behave.
I have no particular desire to either try and fight that trend or indeed to try and press it. I have plenty of exposure to higher yields via my allocation to CTAs within BUSHY™. Positioning within DBMF 0.00%↑ - the SocGen Trend Index replicator - feels representative. We will let the CTAs carry on doing their thing.
The Jackson Hole speech was however enough to check some of the dollar weakness we have seen since Bessent’s ‘inventory management’ announcement and subsequent ‘mini twist’ the other day.
I mentioned a couple of weeks ago that we were getting close to the time when we need to roll the EURUSD puts in BUSHY™’s hedge book. Now is that time. I am looking to replace the existing December 1.15 puts with June ‘27 1.14 strikes (32%-delta) and will execute over the next week.
Uranium?
The 🐿️ is a long-term uranium bull but we exited the trade in February (‘Time for a Glowing Hedge’) and entered the short position in Sam Altman’s SMR science project, OKLO 0.00%↑.