14 AUG 2013 01:56 EDT
By eFXnews.com
The following is the list of Goldman Sachs' current open tactical trades in FX, rates, and equities as of August 14, 2013:
On FX:
Stay long EUR/GBP, opened at 0.8462 on 8 May 2013, with an initial target of 0.88 and a stop on a close below 0.8350.
Stay short GBP/NOK, opened at 9.20 on 28 June 2013, with an initial target of 8.60 and a stop on a close above 9.46.
On Rates:
Stay long 10-year Italian government bonds (BTPs) vs short 10-year French government bonds (OATs), recommended on Sunday 28 April 2013 and initiated on Monday 29 April 2013 at a spread of 221bp, with an initial target of 180bp and a stop on a close above 260bp.
Stay long Dec-14 Australian Bank Bill Futures, opened at 97.11 on 29 Jul 2013, with a target of 97.60 and a stop on a close below 97.11.
On Equities:
Go long Wavefront GDP Growth Basket, opened on 13 August 2013, with an initial target of 86bp and a stop on a close below 77 >>>
More on the GS' new equities trade: "We are initiating a tactical recommendation to be long the Wavefront GDP Growth basket, an equity portfolio that pits the most cyclically exposed industries in the US market against the least cyclically exposed industries and that, as a result, has outsized leverage to the global business cycle. With the S&P 500 index close to highs, and growth expected to accelerate to trend and above over the next several quarters, sector leadership could continue its march from the most defensive parts of the market earlier this year, to more domestic facing cyclicals currently, and to a broader set of cyclicals going forward. Our initial target is set at 86, with a stop on a close below 77. Of course, we are initiating this new tactical trade after a very robust set of July PMI readings last month, which makes the scope for disappointment on the data side a bit higher and so we have set a rather tight stop accordingly. However, markets have not progressed much since then, and our view is that the broad trajectory of activity indicators remains higher from here."
On FX:
Stay long EUR/GBP, opened at 0.8462 on 8 May 2013, with an initial target of 0.88 and a stop on a close below 0.8350.
Stay short GBP/NOK, opened at 9.20 on 28 June 2013, with an initial target of 8.60 and a stop on a close above 9.46.
On Rates:
Stay long 10-year Italian government bonds (BTPs) vs short 10-year French government bonds (OATs), recommended on Sunday 28 April 2013 and initiated on Monday 29 April 2013 at a spread of 221bp, with an initial target of 180bp and a stop on a close above 260bp.
Stay long Dec-14 Australian Bank Bill Futures, opened at 97.11 on 29 Jul 2013, with a target of 97.60 and a stop on a close below 97.11.
On Equities:
Go long Wavefront GDP Growth Basket, opened on 13 August 2013, with an initial target of 86bp and a stop on a close below 77 >>>
More on the GS' new equities trade: "We are initiating a tactical recommendation to be long the Wavefront GDP Growth basket, an equity portfolio that pits the most cyclically exposed industries in the US market against the least cyclically exposed industries and that, as a result, has outsized leverage to the global business cycle. With the S&P 500 index close to highs, and growth expected to accelerate to trend and above over the next several quarters, sector leadership could continue its march from the most defensive parts of the market earlier this year, to more domestic facing cyclicals currently, and to a broader set of cyclicals going forward. Our initial target is set at 86, with a stop on a close below 77. Of course, we are initiating this new tactical trade after a very robust set of July PMI readings last month, which makes the scope for disappointment on the data side a bit higher and so we have set a rather tight stop accordingly. However, markets have not progressed much since then, and our view is that the broad trajectory of activity indicators remains higher from here."
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