Sell the Rallies, Traders are Buying Risk Protection
AAPL trying to hold markets together on news of stronger than expected iPhone sales. However, there's a few areas that traders are not watching - VVIX, Financials, and Utilities. Let's look at these areas in detail. Also, get my recommendation for the rest of the week...
Letting the Trade Come to You
Let's review some key support and resistance levels in the market and set up a strategy around it.
Loss Of Control?
Think central bankers have “lost control?” Think again. Consider this headline from Bloomberg: “Latam currencies find some stability after volatile NY session, finishing Monday stronger as U.S. equities rise, dollar weakens and UST yields are steady; dovish Brainard speech helps calm market, with Mexican peso rebounding past 19.00 key level after falling through it during…
They Pulled Us Back In
What a difference a day makes. The dovish Fed official who on Friday was thought to go hawkish has remained dovish today. Yes the market is spastic. This news ignited a rally right into the ball of risk level that we have been discussing for the last 7 weeks. Where do we go from here?…
In Monday’s Main Event, Brainard Takes Aim At Hawks
Well we knew it was going to be all about the Brainard, so we figured we might as well wait and see if the uber-dove gets hawkish. Here was Barclays pre-speech take: “Federal Reserve Governor Lael Brainard is scheduled to speak on the state of the US economy on September 12. Her speech is a…
Key Fed “Brain” Now Controls The Fate Of The World
Alright, so next week is critical. We’re just going to be honest with you because it’s the sad truth. All eyes are on this “mystery” Brainard speech on Monday where for some reason everyone seems convinced she’s going to inexplicably morph into a hawk in front of our very eyes. Of course we could always…
This is Just the Beginning
You want volatility? We got volatility! The markets had the largest move on Friday since Brexit. First, I want to give you an idea of how intense the selling got. Next, TheoTraders must be prepared for what's coming. The selling we saw on Friday may be just the beginning. Stocks that got the hit hardest…
Bloody Waters
Ok, so today was an important day symbolically - and not just because the Dow fell nearly 400 points. That’s a drop in the proverbial bucket compared to how far we’ve come since 2009. There are several things you absolutely have to take note of. Let’s start with the dollar and vol: The dollar is…
This Market Has Too Much Time On Its Hands
Do you want to know something that continually amazes us? Of course you do. Have a look at this chart: (Chart: Deutsche Bank) So pretty clearly, the market has no faith whatsoever in the Fed’s ability and/or willingness to raise rates, right? Well that being the case, why is it that all it takes is…
If You Short These Bonds, You’ll Make A Killing
Has the market learned to shrug off central banks? We doubt it but today’s reaction to the EcB provides some semblance of hope. Still there’s a palpable degree of skepticism. Here’s our favorite, Bloomberg’s Richard Breslow: “Others focus on the disruptive rather than liquidity enhancing activities of high frequency trading. Electronic dealing, both single and…