Silver as an investment

Category Archives: Volatility

5 Financial Myths You Should Ignore

Authored by Richard Rosso via RealInvestmentAdvice.com, The financial terrain is strewn with robust fables cleverly disguised as facts. The setbacks to financial security due to stock market returns never realized, the precious time and human capital necessary to make up for market losses, the ingenious data-mining undertaken by populist gurus that want you to believe […]

Will Yesterday’s Market Selloff Turn “Emotional”: Here Are The Key Indicators RBC Is Looking At

Yesterday’s sharp S&P selloff, the largest of 2017, and the first time the market dropped by more than 1% in 110 trading days, may be just the beginning: that is the troubling thesis presented by JPM’s quant Marko Kolanovic, who as we quoted yesterday, warned that “following Friday’s option expiry, the gamma imbalance shifted towards […]

PBOC Injects Hundreds Of Billions Into Chinese Banks After Sudden Defaults In Interbank Payments

As is customary virtually every time the Chinese central bank commences some form of tightening, overnight the PBOC injected “hundreds of billions of yuan into the financial system after some smaller lenders failed to repay borrowings in the interbank market”, according to people familiar with the matter. According to a brief note by Bloomberg, Tuesday’s […]

Bond Market Calm Is Threatened by Fed’s $1.75 Trillion MBS Shift

wallstreetexaminer.com / by Anthony Sanders via  Confounded Interest / March 20, 2017 Will there be a seismic shift in bond and agency MBS volatility as The Fed gradually raises rates and starts to unwind their massive balance sheet? (Bloomberg) -By Liz Capo McCormick, Matt Scully and Edward Bolingbroke- As far as bond buyers go, the Federal Reserve is pretty […]

Credit Suisse “Climbs The Wall Of Worry”, Raises S&P Target To 2,500 From 2,350

Following bearish reports from Goldman (which tactically downgraded stocks to Neutral for the next three months just hours before the Fed rate hike), RBC and JPM’s head quant Marko Kolanovic over the past week, overnight Credit Suisse decided to take the other side of the trade and hiked its year end forecasts for the S&P500, […]

BofA: The Market Is No Longer Efficient

Almost exactly 8 years ago, in April of 2009 we wrote for the first time that as a result of the confluence of unprecedented central bank intervention meant to prop up risk prices which distort markets in the long run, and the rising dominance of HFT and algo trading strategies, which distort price formation in […]

Quiet Start To Quad-Witching St. Paddy’s Day: Futures Flat, Global Stocks Mixed

A quiet start to today’s quad-witching St. Patrick’s day, with European stocks mixed, Asian shares and U.S. index futures (-0.1%) little changed ahead of industrial production data with just Tiffany’s set to report earnings. Emerging markets headed toward the best week in eight months even as the global equities rally spurred by the Federal Reserve’s […]

1.4 Trillion Reasons Why Today’s ‘Quad Witch’ Could Matter

In 2015, options expirations mattered – stocks would tear higher into the event and like clockwork sink back lower after. 2016 was not so obvious but the all-important 'quad-witch' expirations still had some bias. However, if JPMorgan's equity derivative strategists are right, today's 'quad-witch'  – with $1.4 trillion worth of S&P 500 notional set to […]

Kolanovic: We Expect “Near-Term Market Weakness; Suggest Reducing US Equities”

First Goldman, then RBC, and now JPM’s top quant. One month after JPM’s head quant Marko Kolanovic warned that volatility is about to return and could lead to “accidents”, the market timer also called “Gandalf” elsewhere for his prognosticative skills is out with a fresh warning, predicting “market weakness in the near-term” adding that he […]

RBC: “The Fed Is Now Forced To Walk Back The Market’s Incorrect Dovish Interpretation”

First, it was Goldman’s chief economist Jan Hatzius, who in a fascinating note explained why the market has totally misread the Fed’s tightening intentions, claiming the market surge is “not the reaction the Fed wanted”, alleging that the market’s dramatic “easing” response was “not the outcome the FOMC aimed for” and concluding that “at the […]