If it’s not inflationary and rising rate concerns there is now the threat of retaliatory fears from the latest news centering on the U.S. potential trade tariffs on steel and aluminum. Even as inflation ticked up, as measured by the PCE data released yesterday, the U.S. 10yr. Treasury took a leg lower. Fed Chair Jerome…
From David Lincoln’s Blog; On February 27th, Proshares announced that the leverage of its SVXY inverse volatility fund would be reduced from -1X to -.05X and that the leverage of UVXY would be reduced from 2x to 1.5x. Although not easily quantifiable, it was undeniable that this would cause a reduction in options premium. If…
It was a turbulent time for equities and the S&P 500, which lost nearly 4% during the month of February. Rounding out the month yesterday, the S&P 500 finished lower by roughly 1.1% and with all three major indexes finished lower on the day. The Dow was the biggest loser, closing down by 1.50 percent.…
Well…Fed Chairman Jerome Powell held his first testimony on Capital Hill yesterday and it didn’t take market participants long to key in on the possibility of the Fed raising rates more than the anticipated 3 times in 2018. Prior to his testimony, prepared remarks were publicly released. The most balanced of the remarks was as…
It all begins today with Federal Reserve Chairman Jerome Powell’s first day of testimony in front of lawmakers. His prepared remarks to the House Financial Services panel will be released at 8:30 a.m. Eastern Time, followed by his testimony that will begin at 10 a.m. Eastern. It’s a foregone conclusion that the testimony on Capital…
Despite the recent level setting of market expectations and more recent equilibrium found in the major indices, I wouldn’t sound the “all clear” bells just yet. After bouncing off of key levels during the greater than 10% market correction, all 3 major averages finished higher last week. Recent market whipsawing has caused highly elevated levels…
Despite the recent level setting of market expectations and more recent equilibrium found in the major indices, I wouldn’t sound the “all clear” bells just yet. After bouncing off of key levels during the greater than 10% market correction, all 3 major averages finished higher last week. The Dow rose 0.4% over the week while…...
With Asian equity markets finishing nicely in the green overnight, European markets aren’t following suit as of yet. Nonetheless, U.S. equity futures are largely higher, but anything can happen between now and 9:30 a.m. EST when Wall Street opens for trading. That has been the trend, the unpredictability of the market, which has been on…
In light of declining volatility – the VIX index and its term structure started to normalize Wednesday – where could this market head and what type of hedges are of the best value with option premium still at elevated levels? To recognize the probability paths is to understand the market oddities involved in the Volatility…...
If you’re not enjoying the market’s roller coaster ride in February, you’re likely not alone with that sentiment. Yesterday proved to be another wild day for the markets with the Fed minutes coming forward at 2:00, spurring equity prices in both directions. In the Fed minutes from January 2017, there was much to be extrapolated.…
