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Inflation & Crude Oil
Last Wednesday the S&P 500 Index declined down to support at the 50-day Moving Average after the release of the Consumer Price Index.
Employment Surprise
On Friday the S&P 500 Index opened higher and advanced into new high territory again on likely reduced pressure on Jay Powell at the Federal Reserve to take some tightening action after the weaker than expected employment report.
Volatility Kings First Quarter 2021
With the S&P 500 Index making multiple new highs volatility continues drifting lower, as option volume increases.
VIX Option Hedge
As the S&P 500 Index continues making new closing and intraday highs, signs of increasing volume in VIX options suggests growing hedging activity.
Sell The Bounce?
Based upon the S&P 500 Index making a new closing high on Friday equities appear constructive, with some sectors doing well while others lag.
Interest Rate Whack
Another 10-Year Treasury Note yield increase shocked the markets again last Thursday as all of the S&P 500 Index sectors declined except for Financials.
Bumpy Ride
Volatility increased significantly last week for both equities and bonds.
Perils Of Easy Money
Last Thursday's interest rate jolt made one thing clear, more easy money will ignite inflation fears and equities are not taking higher interest rates kindly.
Crude Oil Uptrend
Sizable advances in the crude oil sector suggest a continuation of the uptrend already underway.
Why Try Spreads
In bull markets, the best strategy is to stay long equities and/or ETFs and then tactically hedge pullbacks as they begin developing since ordinary pullbacks can become corrections when something unexpected happens.
Don't Worry, Be Happy
In bull markets, the best strategy is to stay long equities and/or ETFs and then tactically hedge pullbacks as they begin developing since ordinary pullbacks can become corrections when something unexpected happens.
The Next Short Squeeze
The GameStop saga last week increased the probability for more short squeezes as the "video game mob" targets more vulnerable stocks with high short interest, despite fundamental valuation.
Bulls Blowing Bubbles
By the end of last week with the major equity indexes at or new highs along with most indicators at or near bullish extremes, it seems like there is something more than good news and earnings reporting involved.
Volatility Kings Fourth Quarter 2020
While market implied volatility of S&P 500 Index increased somewhat last week back and assuming ~ 20% represents the current mean as in regression to the mean, option indicators confirm bullish sentiment at all-time highs according to some analysts.
A Look At Fourth Quarter, 2020
With fourth quarter earnings reporting already underway, the time has come once again to update our list of companies that have a regular tendency to experience increasing option implied volatility as their quarterly reporting dates approach.
Better Than Expected
After a week of unexpected and even unprecedented fundamental events, the S&P 500 Index responded with unexpected strength and continued higher every day except one making several new closing and intraday highs.
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