Sanctions have created major dislocations in the markets and while there is a decent level of volatility, Glencore is clearly on the wrong side of it.
CCI and Oddo are on the other side of this trade eating a free bear flesh lunch from Glencore.
Is Glencore unlucky or the trader creates its own luck ?
There is a belief that Glencore is in a good position (expressed by Long- equity indexers inadequately comprehending the interwined physicality and financiality in commodity markets) while in fact the reverse is totally true.
The existential questions are why don’t they simply make money by trading with the existing assets that they already control ? Continue reading