The strength in the greenback has been amplified by rising bond yields and a general safe haven attraction during these uncertain times, the latter shouldn’t be underestimated if we see another left-field macro event through 2022 /23. Unfortunately, the Euro has been one of the main causalities due to the conflict on its Eastern doorstep, we may have seen the worst here but Putin is clearly an unpredictable proposition.
- We no longer want to own the ULE ETF but our preferred scenario is we will see a ~10% bounce towards the $US12.50-13 region which will provide a better exit level.
- Such a move is likely to be accompanied by an ongoing bounce inequities which could see us switch this holding to a long volatility (VIX) exposure.
MM is looking to cut our ULE position ~10% higher
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