The Big Hedge Driving Markets

2 Comments

September 3, 2016

Free Online Seminar
The Next Big Short
with Don Kaufman
Wednesday, September 7th at 8 PM New York Time / 7 PM Central
https://theotrade.com/short/

Thanks to the Volker rule in the Dodd-Frank Bill big banks need to dynamically hedge their positions. This means when the market goes up they need to buy S&P Futures into the rally and when markets go down they need to sell S&P Futures into the sell off. We have seen the last several weeks big volume coming into the S&P Futures market around the key levels 2160 and 2180. So what does all this mean? Watch this extended weekend edition to find out...

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2 Comments

  • Charles

    September 3, 2016

    If you BUY when the market goes UP, aren't you supporting and continuing the move?
    If you SELL when the market goes DOWN, aren't you helping to continue that trend?
    If I wanted to stall the market, and if I had the Moxie, I would SELL the UPs and BUY the SAGs, thus countering the trends.

  • Michael

    September 4, 2016

    Thanks