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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (17261)	9/25/2015 12:29:32 PM
From: The Ox	2 Recommendations Recommended By Hawkmoon sixty2nds Respond to of 33421

NEW YORK, Sept 25 Growth in America's services sector eased during September to its slowest rate at any time during the last three months as new business expansion weakened for a second month, an industry report showed on Friday. Financial firm Markit said its preliminary, or "flash", reading of its Purchasing Managers Index for the services sector slipped to 55.6 in September from the final 56.1 reading in August. A reading over 50 signals expansion in economic activity. The data matched the 55.6 level forecast by economists in a Reuters survey. A subindex measuring new business at service companies declined to 55.3, its lowest level since January, from the final reading of 55.7 in August. The employment component slipped in September from August.

To: Hawkmoon who wrote (17261)	9/25/2015 3:16:35 PM
From: isopatch	4 Recommendations Recommended By Hawkmoon John Pitera roguedolphin sixty2nds Read Replies (1) \| Respond to of 33421

Important information. Thanks for posting it. Deutsche Bank looking shaky, again, in part because of their vast, uncollateralized derivatives exposure and non-performing loan portfolio. COMEX deliverable gold is approaching zero. With J.P. Morgans gold vault nearly empty, gold could be another flash point. Those, Glencore, and a deeper Chinese economic plunge are only the most visible of the potential triggers for another 2008 type credit meltdown. Positives? If we get another such washout the bargains will be spectacular, again...)) Iso

To: Hawkmoon who wrote (17261)	10/14/2015 8:17:53 PM
From: John Pitera	2 Recommendations Recommended By Hawkmoon isopatch Read Replies (1) \| Respond to of 33421

This unusual options trade signals that Wall Street is bracing for a black swan Published: Oct 13, 2015 5:45 p.m. ET Blame it on a looming interest rate hike, sluggish global growth or conflict in the Middle East, *but investors are girding for the worst!* That is apparently what Ryan Detrick, head strategist at Kimble Charting Solutions, thinks. He points out that unusual options buying on Monday signaled that Wall Street investors are fretting about the possibility that the market could be whacked by a stock-market crisis. Detrick said that the so-called CBOE SKEW Index—*a measure of fear in the market hit an all-time high on Monday.* The options contracts are used to make a bet on the direction of the S&P 500 SPX, -0.47% Essentially, the SKEW measures what investors are willing to pay for put options compared with call options on the S&P 500. [iframe name="google_ads_iframe_/2/marketwatch.com/commentary_thetell_1" width="1" height="1" id="google_ads_iframe_/2/marketwatch.com/commentary_thetell_1" src="javascript:"<html]"" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border: 0px currentColor; vertical-align: bottom; border-image: none;">[/iframe] [iframe name="google_ads_iframe_/2/marketwatch.com/commentary_thetell_1__hidden__" width="0" height="0" id="google_ads_iframe_/2/marketwatch.com/commentary_thetell_1__hidden__" src="javascript:"<html]"" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border: 0px currentColor; vertical-align: bottom; display: none; visibility: hidden; border-image: none;">[/iframe] A put option confers the right to sell an underlying security, in this case the S&P 500, at predetermined strike price at a predetermined time. Think of it as buying insurance, if you own the underlying asset. And a call option grants the right to buy. Detrick said on Monday the *CBOE SKEW saw demand for buyers of protection spike above levels not seen in more than 20 years.* “That action [in the CBOE SKEW] showed that [investors] are on edge and are worried about some unknown event that could push equity prices lower,” he told MarketWatch. Here’s a look at Detrick’s chart, which appeared on Kimble Charting Solutions Tuesday, illustrating the spike: The CBOE SKEW usual trades between 100 and 150. Detrick said that the SKEW spiked back in September 2014 amid fears about Ebola, but its rise on Monday eclipsed its highest levels hit in the 1990s, as the chart shows: highest levels hit in the 1990s, as the chart shows: It is important to note that the *CBOE SKEW differs from the so-called CBOE Volatility Index* VIX, +2.04% —another measure of implied volatility, known as the fear gauge. The Vix stands at 17, well off its high of 52, reached during the Wall Street rout back in August spurred by worries about petering economic growth in China, the world’s second-largest economy. Detrick said it isn’t all gloom and doom *because it is hard to truly gauge what a spike in the SKEW means*, the Vix is hovering at relatively low levels. He does, however, offer a chart of past periods in which the SKEW has spiked and how the market has performed afterward: (Editorial note..by JJP.... the above table does not really statistically indicate that a powerful decline is coming. based on my viewing of he table of the SKEW spike over 142 .... However, I will say that the markets witnessed such a proliferation of options, etfs, CDS, CDL, CLO... binary options futures on Options.... Futures on the VIX that I believe there is no way of shorting out the cumulative effect Derivatives.... THE REVENGE OF DARTH VADER....... JJP.....I DO want to comment on the dramatic action in today's market and the markets of the past several days... in terms of the $TNX below 2%, the USD breaking down and it becoming well known... WMT and NFLX blowing up..... read on) Ultimately, Detrick said the SKEW may offer little insights into the psyche of traders. But it might be worth paying attention to if things go south fast.