3 Charts and A Week of Data

3 Charts & Week of Data

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In the last episode of The LongVol show I talked about car payment deliquencies on the rise as well as some more data in regards to housing. 

There are a few charts this week that I want to get into here.

Rising Car Payments & Defaults

Rising car payments are on the move and the national average according to Edmunds is now $733/month. 

The chart below is interesting to me given the increased rise in them as of late. 

Delinquencies are on the rise as well. 

This week I am going to do my best to get a friend Lucky Lopez of Automotive life on The LongShort Show.

I just talked with him about this and he has a lot to say given he’s in the industry. 

Hedge Funds Remain Net Short S&P500

The other managers are also short S&P500 and that has not budged much. On the back of Mike Burry being short and in the face of a big economic data week this is something to keep tracking. 

Hard to disagree with them. While I am short some names my cash balances in the fund/for clients are at highs.

Median Sales Price of Houses Sold/Real Median Income

We just reached a new all time high here on this data point. 

While it’s not related, but still important, Phoenix market evictions hit highs not seen since the 2009 GFC

A Data Dependent Week

This week is a data dump and with a new monthly candle coming, debt rising, and some select equities hanging by a thread, this becomes important. 

I talked about this data this week in the TLV Report and this morning in the DeltaOne Morning brief my trading notes were to sit back and await this. 

It will be a busy week ahead, but this data should get portfolios shifting.

The Final Word

There was a scene in this movie called Margin Call that was released in 2012. I remember it because I was on a desk then with some older guys who were mentors to me. 

Watch this clip here.

You look at this data, the debt all of it and wonder, how can this even be possible? Or at least I do. 

But when I do it reminds me of that scene. 

See you this week on Episode III of The LongVol Show. 


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About the Author

Daniel Bustamante is the founder, managing partner, and CIO of Bustamante Capital L.L.C., a multi-strategy hedge fund management firm based in San Juan, Puerto Rico. He has over 10 years of experience in the financial industry, specializing in equities, futures, and event-driven trading strategies.

He is also the founder of TheLongVol.com, a blog and newsletter that shares his insights on his investing process, travel, and other private investments. He has been featured in Bloomberg, Arizona Business Journal, Business Insider, Yahoo! Finance, Forbes, Seeking Alpha, and other publications over his career on Wall Street.


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