Adding a defensive consumer play to the trade blotter

Adding a defensive consumer play to the trade blotter

We are adding a defensive consumer play to the Tematica Options+ trade blotter to capitalize on the “retro” trade for inelastic consumer products, better known in thematic-speak as Middle-class Squeeze centric products and retailers.

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Issuing a “Sell” rating on a Cash Strapped Consumer position

Issuing a “Sell” rating on a Cash Strapped Consumer position

You may be aware of this morning’s “surprise” move when China’s central bank said that it will lower the amount of deposits that banks must hold in reserve by a half of a percentage point. Given the vector and velocity of the Chinese economy, I have to say this round of stimulus is anything but a surprise. Tracing back the Purchasing Managers’ Index (PMI) data over the last several months, it’s rather apparent that China’s economy has been contracting.

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Issuing a Buy rating on (SH) shares while exiting (IPAY) shares

Issuing a Buy rating on (SH) shares while exiting (IPAY) shares

We had another bout of pain in the market as we entered February. While the market seems to have moved off oil prices for the moment, it remains concerned. Key reasons are slowing economic data (including the recent ISM Manufacturing and ISM Services reports and the Employment Report, all for January) and weaker-than-expected outlooks this earnings season from a growing number of companies. All of this has led to a rethinking of growth expectations and valuations, with growth stocks the hardest hit, as evidenced by the year-to-date move in the Nasdaq Composite Index, which is down almost 13%, compared to dips of 7% and 8% for the Dow Jones Industrial Average and the S&P 500 respectively.

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