Shaun's market musings & other scribblings

 No new trade ideas that I'll be putting on this week but there were some positive headlines over the past few days that strengthen my conviction in the three trade idas from last week. By far the biggest news in the space emerged out of China as the CCP, in what is becoming increasingly familiar, has taken action against burgeoning companies. This week China aimed its sight on the for-profit education sector & companies such as $TAL, $EDU, & $GOTU have all shed > 50% of their market caps since Thursday. Outside of the sector ride-hailing champion $DIDI has slumped > 20% in after-hours trading over the weekend since the Friday close. Investors the world over cannot help but notice that many of the firms that have rankled the CCP & have seemingly come under attact from chinese regulators are firms that listed outside of China. Chinese firms have listed outside of the Chinese mainland to assure investors that they will be adhering to western standards of accounting ...

1. South African 10 yr - This trade isn't very sophisticated. Basically the currency sold off in the wake of the unrest that has swept the country since the arrest of former President Zuma. A lot of this probably by locals as a kind of insurance to protect themselves from a serious breakdown. These kind of sell-offs tend to overshoot from long-term fundamentals becuase of this impulse from locals to convert a portion of their savings into safer currencies & when things calm down the currencies will revert to trend. The sell-off was completed by Wed, and the ZAR has since recovered  > 60% of what it gave up during the sell-off. Yet, it is still nearly 40 bp off its 50d so I'm in no rush to sell. Taking a look at the charts both the 10 yr & 30 yr have recovered back to their 50d but both are still quite a ways off from where they were two weeks ago just prior to the sell-off. I still really like the 10 yr here when it's yielding 8.9% before levering it up with con...