Pro Macro: Flash Update – May 17, 2022

Published on: May 17th, 2022

Raoul wants to take some profits in carbon…

Comments

  • JK
    James K.
    17 May 2022 @ 17:54
    4 0
    Killer trade Raoul …..
    • JW
      JW2 W.
      18 May 2022 @ 09:25
      0 0
      Hear Hear!. Thank you Raoul indeed. This was a very interesting trade as well as a profitable one. I continue to review this market and perhaps we get a chance to jump back in once the dust has settled. We need to understand how the politics will influence this market going forward.
    • RP
      Raoul P. | Founder
      17 May 2022 @ 18:34
      2 0
      Thanks!
  • JW
    JW2 W.
    17 May 2022 @ 17:56
    2 0
    Yes (took profits last week :-) and in the recent vote on the revision proposal they also included a clause to limit financial investors’ access to the carbon market. It proposed that by January 2025 only polluters in the system and their financial intermediaries can operate accounts in the carbon registry used to transfer allowances. Devil is in details and in further voting procedures but we need to hear from expert if and how this might affect ETF's such as CO2 for example (they buy actual credits) and KEUA (they buy futures). Whatever it may be, it adds more uncertainty ahead. Would be great if your can do another interview with Lawson :-)
  • PP
    Percy P.
    17 May 2022 @ 19:51
    1 0
    Same camp, I exited last week. All FX against dollar seems to be in trouble increasing the risk of significant slowdown. Slowdown = release less CO2 into the atmosphere = those who will be forced to hold carbon allowance, taking a break. Unless we claim that all the European military and defense spending, building guns, sending military satellite require burning a lot of fuel.
    • PP
      Percy P.
      17 May 2022 @ 20:10
      0 0
      But that's just my view for Europe and EUA. If interested, there are other region that are ramping up the size of emission allowance system as well but the asset allocation into carbon get less interesting given that the reward to risk ratio gets significantly more interesting in FX, oil and gas, bond
  • JB
    Jason B.
    17 May 2022 @ 20:01
    1 0
    Great timing! FT reporting that EU is about to dump a bunch of permits into the system ...
    • RP
      Raoul P. | Founder
      18 May 2022 @ 13:55
      4 0
      Better lucky than smart...
    • JW
      JW2 W.
      18 May 2022 @ 09:56
      0 0
      Indeed, see https://thehitc.com/the-eu-is-preparing-to-sell-more-carbon-credits-to-pay-for-the-russian-gas-phase-out/
  • RW
    Rick W.
    18 May 2022 @ 14:23
    0 0
    Thanks for the heads up Raoul, It's nice to zig when I should zig rather than zag. I sold for a client GRN yesterday when I saw this, this morning GRN is down 7+%. I have zero regrets regarding my RealVision Pro subscription!!! Keep 'em coming. Best regards, Rick W.
  • JW
    Jeffrey W.
    18 May 2022 @ 20:00
    1 0
    Sold! thanks