Volatility

Three Easy Pieces

"The bottom line is that, unless one has a very optimistic view on earnings growth and expects valuations to remain elevated beyond what historical precedent argues is reasonable, the upside is limited, and the downside is troubling..."

CME Unveils Bitcoin Futures Circuit Breakers

Bitcoin trading limits would kick in when the price of its bitcoin futures move 7%, 13% or 20% up or down from the previous day’s closing price. The first two thresholds, for 7% and 13% moves, are for “soft” limits, which trigger a two-minute pause in trading of bitcoin futures. The 20% limit would be a “hard” stop on how far CME’s bitcoin futures could swing on any day.

Short-Volatility Fund Cash Levels Hits Record High

While VIX futures and options speculators have pulled back (albeit very marginally) from their record short positions in the last week, ETF products betting that volatility will sink lower have never been more popular.

Knave Dave's picture

All is not perfect in this surreal stock market as nerves begin to jitter and bulls begin to sound like bears. Yet, euphoria continues to push prices to new heights past omens and disasters and in spite of failed legislation.

Global Stock Meltup Sends Nikkei To 25 Year High

The global risk levitation continues, sending Asian stocks just shy of records, to the highest since November 2007 and Japan's Nikkei topped 22,750 - a level last seen in 1992 - while European shares and US equity futures were mixed, and the dollar rose across the board, gains accelerating through the European session with the EURUSD sumping below 1.16,

The Central Bank Bubble: How Will It Burst?

"If low interest rates and QE have been the lever pushing up prices of dividend and coupon-paying assets, central banks are the fulcrum... This fulcrum is slowly shifting..."