Interpreting trader talk

Financial Events, Futures trading, Oil markets

Traders.pngCurrent financial and chemical market volatility is a bonanza for good traders, as it gives them more opportunity to take positions, up or down.

However, having traded on behalf of a chemical major in Houston, Texas, the blog knows from personal experience that not all traders get all their positions right, all of the time.

It therefore thought it might be helpful to provide some definitions of trader-speak, heard recently, to help clients interpret their comments:

The outlook seems pretty clear to me” = I’ve taken a long position, but I’m having second thoughts about it. What do you think?

It’s true that the market is not in good shape. But it’s not all bad either” = I’ve got a long position, and I can’t find any way of offloading it.

Its slightly worse than we anticipated, but its consistent with leading indicators” = I’ve got a short position which is in the money, but this might be the time to sell.

Not every product is heading south” = I’ve got a short position, and I’m hanging on to it till things really fall apart.

Nobody could have forecast these developments” = My boss is thinking of firing me, and hiring someone who knows what they’re doing.

More examples will, of course, be very welcome.

PREVIOUS POST

The Drawn-Out Downtrend phase of the Crisis begins

16/08/2010

“Humankind cannot bear very much reality” TS Eliot, 4 Quartets, 1936...

Learn more
NEXT POST

US 3 year interest rates back to 1940's levels

18/08/2010

High quality 3 year government bond yields are now less than 1%, as shown in the...

Learn more
More posts
China’s renminbi and the global ring of fire
01/09/2019

China’s property bubble puts it at the epicentre of the ring of fire © Reuters  China’s de...

Read
Oil market weakness suggests recession now more likely than Middle East war
11/08/2019

Oil markets remain poised between fear of recession and fear of a US attack on Iran. But gradually i...

Read
Recession risk rises as Iran tensions and US-China trade war build
26/05/2019

Oil markets are once again uneasily balanced between two completely different outcomes – and o...

Read
Déjà vu all over again for oil markets as recession risks rise
03/03/2019

Back in 2015, veteran Saudi Oil Minister Ali  Naimi was very clear about Saudi’s need to adop...

Read
Stock markets risk Wile E. Coyote fall despite Powell’s rush to support the S&P 500
06/01/2019

How can companies and investors avoid losing money as the global economy goes into a China-led reces...

Read
Why everyone ignored my warnings ahead of the financial crisis
16/09/2018

It’s 10 years since my forecast of a global financial crisis came true, as Lehman Brothers col...

Read
High-flying “story stocks” hit air pockets as credit finally tightens
29/07/2018

“Nobody could ever have seen this coming” is the normal comment after sudden share price...

Read
London house prices slip as supply/demand balances change
22/07/2018

London house prices are “falling at the fastest rate in almost a decade” according to m...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more