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Traders' Insight
Interactive Brokers Traders' Insight is a free online blog drawing together financial market commentary from an array of industry contributors. Exchanges, mutual funds, investment companies ...more

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What To Expect When You Are Expecting Tesla To Join The S&P 500
There were many layers to consider regarding TSLA’s upcoming inclusion into the S&P 500 Index.
All That Glitters Is Not Gold
ith other commodities like oil and copper showing strength in recent weeks, gold has been a notable laggard.
The Speculative Present Vs. The Investing “Pfuture”
Investors aren’t really focused on the present or the future. It’s more about speculation, pure and simple. That speculation has worked for months for a multitude of investors.
VIX Is Not Now, Nor Has It Ever Been, The Fear Index
VIX was never designed to measure the level of fear in the marketplace.
Heads I Win, Tails I Win
One of the hallmarks that separate bull markets from bear markets is how they respond to news. During a bull market, news tends to be interpreted with a positive spin.
Don’t Fight The Fed, Don’t Fight The Tape – Still Appropriate?
The Federal Reserve has slowed the unprecedented pace of monetary expansion that peaked in June, but the balance sheet has grown at a roughly 10% annualized pace from a trough after a brief decline in July.
S&P Rips The Tesla Band-Aid. What To Expect Next.
Almost all money flowing into TSLA will by necessity need to come out of the rest of the index. That is likely to pressure the index on or around December 18th. 
Farewell To The Best Month Ever
Sentiment indicators are also at or near recent or all-time highs. That is often a contrarian worry. When people express their bullishness, it means they are largely invested already.
Did Anyone Make Dow 30,000 Hats?
The current milestone wasn’t greeted with the same sort of enthusiasm as it was when it first crossed the 5-digit threshold, but many of the surrounding circumstances have a very familiar ring to them.
Yay For Yellen! (And Pretty Much Everything Else)
The list of stocks, indices, and other investable items that are at or near all-time or long-term highs is enormous.
Vexed By VIX
The pancake-flat futures curve is stuck so closely to 26. That is a historically high level for VIX, which has a long-term historical average in the high teens.
What Does The VIX Curve See That Stocks Don’t?
One would logically expect that a market that is sanguine enough to consort with record highs would see a bright future.
Careful What You Wish For – Tesla Edition
Inclusion into SPX requires that the passive managers buy the shares in order for their holdings to properly replicate the index. For a company the size of TSLA, that purchase requirement is staggering.
Kurtosis + Leverage + Lack Of Liquidity = > Crazy Market Moves
If markets were indeed factoring in the potential for growth in a post-pandemic economy, investors should have taken the vaccine news in relative stride. Yet they lurched violently.
The Bond Market Is Back. So Is COVID. Do Stock Markets Care?
Today we see bond yields decline, signaling economic worries, but stocks seem to care little.
While The Bond Market Is Away, Stocks Will Play
On a day like today, the stock market gets to trade without the influence of its dour counterpart. That is impacting the trading dynamics we have seen in recent sessions
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