A Pivotal Moment for Markets?
The Bond Debacle—rising rates—YCC—bond volatility—impact if bonds rally or sell off The Rotation Game Goes On—selling was not met with correlation—tech, financials, energy, Russell—will correlation grip hold?—can markets move forward without high correlation and capitulation? Expansion of Volatility—vol futures, where’s backwardation?—VVIX--Selling Gold, Oil SPX Expected Move--last week EM-- 74.11 (95.56 actual move)--next week-- 124.68 expected…
Dip Buyers Back or More Selling Coming?
Dip buyers bring the market back from the brink. Massive rotations continue to send the market on a roller coaster ride. Here's what I expect to see in the next 2 days of trading...
Higher Rates are Taking a Toll on Markets
A tale of two markets. Today tech got rocked as money flowed out of them into financials, energy, and airline stocks. Higher rates is good for financials up until a point. What happens when rates reach a breaking point? Find out what to look for in this evenings video…
The Great Gamma Unwind
Dynamics of dramatically rising interest rates--Bonds continue declines sending rates flying--In percentage terms just how far has the 10 year rate gone YTD?--the critical juncture; movement in bonds can cause this... The Great Gamma Unwind--a little Dodd Frank with a side order of Volcker Rule--bona fide hedger!--market neutral- you trade with the dynamics of the…
Massively Unchanged Markets?
Bonds moving big recently with huge volume yet the stock market isn't moving. What's going on here? The bonds usually lead the way so one only of these two things can happen now…
When the Bonds Break
Markets Stagnate, volatility subsidesa) good week to be positive thetab) volatility contracts to near lowest point since onset of covidc) vol of vol on the rise - VVIX Inverted Skew Becomes the Norm in Equities-- AMZN, TSLA-- debit call spreads helped by skew - NVDA-- put spreads trade LOW relative to call spreads in index…
A Glimpse of Selling Hits Markets
30 minutes and 40 SPU handles later...NQ takes a near 250 point reversal -RUT rocked -Bonds reverse trend but XLF holds up.. for now! VOL flies, SPX Weekly EM, Use options spreads, everywhere!
The Russell Goes Ballistic!
What's going on with The Russell? Tune in to tonight's video as Don explains how The Russell has smashed through everything we intended it to do and then some…
Buy the Squeeze, Sell the Skew
Explosive move up decimates volatility SPX Expected Move shattered in two consecutive weeks. Short term inefficiency in play Rates Rip Higher—Financials fly—10yr and 30yr diverge, curve is STEEP! Strategy Talk-—buy short term gamma—sell long term premium and skew SPX Expected Move--last week-- 132.54 (expected move)--actual move --169.59--next week-- 63.34
Another Volatility Storm Imminent?
The SPX skirts the upper edge of the expected move today. Last week we saw a significant breach of the expected move. Typically breaches begets other breaches. Will that happen again this week? Well we have 2 days to find out. Here's what to look for…
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