Trading KR, CHF/JPY, AUD/CHF – 11032018

Written by schattenmann

Last week KR had a sell off > 12 % and my remaining position was in red. Although a lot of people sold this stock i used the heavy decline to add 12,5 % of my initial position. KR is one of the leading super market chains in the US and i do not think that they will get out of business that soon. The numbers were not that bad but the market had a panic sell off. The reason for that was the weaker outlook the management is expecting. KR @ 40 was way overvalued but @ 20 underrvalued. The stock is at a blended P/E of 11,7 and the company is earning money and paying dividends. For me there is no reason to throw this stock away and time will tell.

I bought CHF and shorted JPY and combined the trade with a hedge by AUD long CHF short. CHF is showing some weakness against JPY and i do not think that this will last for a very long time. The currency is within a trrading trange of 107-118. I do not believe that the japanese experiment of the BOJ (buying all debts and all assets in Japan) can last forever. There is a tendency of rising yields and today Japan is paying 25 % of tax income for interest payments. If yields go up ( and i assume it will ) how will they pay their debts and their interests? We will see how this goes on but i do expect a weakening JPY on a long term, time will tell the story.

aud_chf-11032018 chf_jpy-11032018 kr1-11032018 kr-11032018 trades-11032018

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