It was a tumultuous day in the market Monday, even as the framework for a U.S./China trade deal appears to be coming together. Negotiations are in the “final stages” as the two sides plan a summit for the end of March at Mar-a-Lago, President Donald Trump’s Florida resort, sources told CNBC. If a deal is…
It was a huge day of VIX trading on Monday with VIX options and futures volume soaring. The bottom line is that hedging programs were deployed on scale given the relative low level/inexpensive hedges that could be afforded and with the S&P 500 achieving the 2,800 level intraday. Most of the hedging activity and upside…
There’s so much to discuss as it pertains to the current S&P 500 (SPX) rally and the Alphabet. No, not just Alphabet’s (GOOGL) earnings, but 3 letters of the Alphabet that serve as signal posts for the S&P 500: E-F-G baby!! E-arnings F-ederal Open Market Committee G-lobal Trade EFG will be the acronym of 2019…
In our weekend edition of Daily Technical Market Recap, Wayne discusses Friday’s market moves as well as what we might expect in the near-term from the various indexes and specific stocks. Another big earnings week is upon us with 100+ companies set to report. Please click the link to watch the video and enjoy the…
Wall Street was in a rather somber move on Tuesday and coming off of a 3-day weekend. The major averages all fell greater than 1% on the day, led by a near 2% drudging by the tech-heavy Nasdaq (NDQ). What was a little scary from an intraday risk assessment basis was the realization of the…
Welcome to the State of the Market video presentation with Wayne and Seth. Please click on the link to review the video. The video discussion on the markets and market volatility is 65 minutes. Outline: Market volatility, VIX Futures expiration, shorting volatility, backwardation (opening dialogue) 5% contango rule (5 minutes in) Realized market volatility vs.…
2018 could easily be characterized as the year that volatility came back into the market place due to Quantitative Tightening and geopolitical/macro concerns. Asset prices reached record levels in 2017 and through much of 2018, but as the Fed ratcheted higher its rate hikes (4 rate hikes in FY18) the market became increasingly fearful that…
At its apex yesterday, the Dow (DJIA) was up some 350+ points. All major averages were up greater than 1% going into the 2:00 p.m. EST FOMC rate hike announcement. By and large, market participants were expecting/anticipating a dovish Fed rate hike. By and large, that’s what they got. The problem then, as the major…
While headlines on trade and/or the White House administration seem to pour out of the media on a daily basis, investors continue to be whipsawed and tumbled about, trying to decipher what is more meaningful to the future of corporate earnings. Yesterday’s most impactful market headline came on the global trade front. According to reports,…
I had a conversation with a client in the late evenings recently. Yes, in the late evening and as the selling pressure in the markets persisted last week. The conversation centered on the client’s e-mini Futures positions and the general sentiment for the market going forward. He was a bit confused as to the correlations…
