Last week’s rallies put both the Nasdaq and S&P deep inside "long Gamma" territory "meaning it would require a powerful (and fast) blast down to risk opening-up something more insidious from a Dealer "pile-on" perspective."
With spreads between value and growth at record levels and an explosion of speculative listings through IPOs and SPACs underway, today’s market environment shares numerous features with prior peaks in 2000 and 2007.
Of course, since Wall Street does not make fees on investors holding cash, maybe there is another reason they are so adamant that you remain invested all the time...
As options trading gains popularity via low or zero-commission trading, the effects of this feedback loop are gaining in importance... The feedback loop in a market sell-off is proven to be more pronounced...
The sharp dollar reversal has triggered a furious bout of short covering in Dollar futures, which according to the latest CFTC data has printed the most short in 9 years.
The key economic data releases this week are the ISM manufacturing index on Monday, the ISM non-manufacturing index on Wednesday, and the employment report on Friday.
"Three months to go until the U.S. Presidential election! Surely Congress will want to get something over the line regarding new stimulus in the U.S. driven more by politics than necessarily economics"
"Congress would grant the Federal Reserve an additional tool for providing support. The Fed would then activate the securities and deposit the funds digitally in households’ apps."
