Lesson from Kenny… If you're gonna play the game, boy, you gotta learn to play it right.
Two Of Wall Street's Hottest Trades Are Getting Crushed Right Now
Courtesy of Matthew Boesler, Business Insider
There's been no lack of love for the U.S. dollar in the markets lately.
At the end of May, the dollar index strengthened to its highest levels since 2010.
Meanwhile, last week, bullish bets on the dollar hit an all-time high. And Wall Street says we are on the verge of a secular bull market in the dollar.
That trade is getting hit pretty hard today. The dollar index is trading down 1.0%, and many currencies that have been weakening against the dollar – like the South African rand, the Brazilian real, and the Australian dollar – are rallying.
The chart below shows the sharp sell-off in the dollar index.
(Thinkorswim)
One big area of weakness for the dollar today is against the Japanese yen, another favorite trade among global investors in recent quarters. The dollar is down 1.3% against the yen as investors close their short-yen positions.
Buying Japanese stocks and selling the yen against the dollar has become one of the most consensus trades in the world, but in the past two weeks or so, it's run into some serious trouble.
The dollar has fallen from a high of ¥103.72 against the yen to current levels around ¥99.17 today.
Meanwhile, the Nikkei has lost a brutal 17% since May 22 – and futures are still taking a bath in after-hours trading today. At the moment, they are down 1.8% from today's close.
******
On a warm summer's evenin' on a train bound for nowhere,
I met up with the gambler; we were both too tired to sleep.
So we took turns a starin' out the window at the darkness
'Til boredom overtook us, and he began to speak.
He said, "Son, I've made my life out of readin' people's faces,
And knowin' what their cards were by the way they held their eyes.
So if you don't mind my sayin', I can see you're out of aces.
For a taste of your whiskey I'll give you some advice."
So I handed him my bottle and he drank down my last swallow.
Then he bummed a cigarette and asked me for a light.
And the night got deathly quiet, and his face lost all expression.
Said, "If you're gonna play the game, boy, ya gotta learn to play it right.
You got to know when to hold 'em, know when to fold 'em,
Know when to walk away and know when to run.
You never count your money when you're sittin' at the table.
There'll be time enough for countin' when the dealin's done.
Now Ev'ry gambler knows that the secret to survivin'
Is knowin' what to throw away and knowing what to keep.
'Cause ev'ry hand's a winner and ev'ry hand's a loser,
And the best that you can hope for is to die in your sleep."
So when he'd finished speakin', he turned back towards the window,
Crushed out his cigarette and faded off to sleep.
And somewhere in the darkness the gambler, he broke even.
But in his final words I found an ace that I could keep.
