IBAFIN

US equities staged a remarkable recovery last week, defying the usual correlation between stocks and precious metals. The Momentum L/S (+1.3%) saw significant buying interest, with AI winners leading the charge. Cyclicals outperformed Defensives by over 200 basis points, driven by an unexpectedly strong ISM print. Transportation and Travel & Leisure sectors were particularly strong,…

As the software sector continues to be the largest exposure for Business Development Companies (BDCs), managers are taking proactive measures to mitigate the risk posed by Artificial Intelligence (AI). According to Barclays, many BDC managers are employing various strategies to insulate their portfolios from AI-related risks. These measures may include reducing Loan-to-Value (LTV) targets, shortening…

The S&P 500 has rebounded from Friday’s weakness, led by cyclical stocks as an unexpectedly strong ISM print fueled hopes of a growth reacceleration trade. The UBPTCYDE sector surged 1.8%, with mining equities finding their footing and crude oil experiencing its largest one-day decline since June. Despite firmer rhetoric from Iran’s supreme leader, President Trump…

The relationship between the Korean Stock Exchange’s KOSPI index and gold has been a topic of interest for many investors. While some may assume that there is a direct correlation between the two, the reality is more complex. In this blog post, we will delve into the history of the KOSPI and gold, their respective…

In the options market, there is a growing demand for upside potential, particularly in gold and silver. According to a recent report from UBS Securities and Treasury (UBS S&T), the GCK6 5500/6000/6500 call fly has been trading, with several call spreads also seeing activity for both gold and silver. Despite a recent price reversal, investors…

This week, the FX market was abuzz with the sudden appreciation of gold and its spillover effects on other currencies. On Thursday, gold suffered one of its largest record daily drops in modern times, with a fall of over 10% in percentage terms. This led to a corresponding drop in the value of metal-oriented FX,…

Gold is approaching a crucial trend line that has been in place since September, and the market is on high alert. As we speak, gold is testing the 50-day moving average (MA) after a mini flash move overnight. The metal needs to stabilize around $4,600 (±$50) to maintain its constructive momentum. Zooming out, the situation…

As the price of gold continues to rise, a large block of trading activity in the gold-linked equity (GLD) has caught our attention. According to over-the-counter equivalent terms, the customer is rolling 250k deltas out of an in-the-money 4,950/5,050 call spread and into a Feb. 20 5,250/5,400 call spread, representing 1.1 mn ounces of gold…