Subscribers See Changes to GFBP

Content you miss out on

For those that aren’t subscribed via the (2 lattes a month option) or the membership known as the Founders option which gives you full access to Magnelibra as a mentorship for your own trading as well as a look at our proprietary Global Futures Benchmark Program Positions Tracker, we felt we should post this mornings commentary which we sent out with our GFBP and Daily Futures and Cash markets settlements page.

Here is what our subscribers received along with the GFBP PTracker and Settles:

As we noted during the day last Friday the Global Futures Benchmark Program Positions Tracker, was setting up to get back into the Dow. We were noting the 26500 level as our key on Friday and most likely a close above would put the tracker into long position sentiment which it did.

We also noted during the early note on Friday that the Tracker was leaning on a renewed Nasdaq Long and reversal of the SP Long in addition to adding on the new Dow long. Well that was indeed the case as both the 26500 level in the Dow as well as the 10600 level in the Nasdaq were settled above. The recent outperformance of the SP and R2k vs the Nasdaq was indeed due for a breather as the new economy continues to be somewhat immune from the old value economic equities. We believe this will continue to be a hard nut for many fundamental economists to reconcile with, but as many long time Magnelibra Econemotions readers have come to know, this is not your standard textbook economy, rather it is an economic system whose engine clearly runs on high octane fuel known as QE (Quantitative Easing).

We often quote the equation of MV = PQ and in reality that is the only equation we follow and we follow it because if the “M” is increasing then asset prices will rise and if the “V” is falling which it will most certainly do considering the concentration factors of wealth or “money hoarding” leads to this deflationary decline, then in order to understand nominal pricing, we only need to look at the quantity of money being supplied. Now we can also look into leverage, which most certainly is being deployed as well and its why we see massive moves in the tech heavy Nasdaq because the bettors are taking this new QE and multiplying it by factors to gain the quickest, fastest most efficient buck.

Now you can believe us or continue to believe the old text book academics still looking at their CAPE, EPS and other standard issue textbook ratio’s or you can realize nothing else matters but QE!

We continue to balk at paying higher prices in executing a long in Silver, but Silver continues to plow higher. We will not chase it but rather want our subscribers to know we are being patient and most likely will get into a long via short puts which we will look to execute early this week. We may do a half hedge with gold only and not go long copper but we are not at that decision point yet, but getting close.

Our subscribers will also receive on a daily basis the following settlement sheet:

As for Settlements for trade ending Friday July 17th 2020, please note we have moved the VIX contract to August from July:

Big earnings this week and we will keep you posted, most notably Tesla, whom we have to figure will give some of the recent gains back, just for purpose and to pressure some weak longs to bail! Our subscribers will get real time daily updates (threads) of things we feel matter and are “MUST KNOWS” and as always we hope you share our work and choose to subscribe!

-Magnelibra Econemotions

DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Michael Agne owner of Magnelibra Capital Advisors. All rights are reserved. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, we make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.