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

To: Don Green who wrote (18850)	3/20/2017 2:56:15 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Cost of Protecting Against Market Swings Is at Its Highest Ever by Cecile Vannucci March 20, 2017, 7:53 AM EDT While the CBOE Volatility Index declined last week, the cost of protecting against large market swings has surpassed a peak hit following the Brexit vote, reaching a fresh all-time high. With the Federal Reserve raising borrowing costs and the political environment remaining uncertain, the CBOE SKEW Index climbed for five straight days, its longest streak since June 2016. The last time the gauge of out-of-the money S&P 500 Index options prices was as high relative to the volatility gauge, the VIX surged 65 percent in the next month. https://www.bloomberg.com/news/articles/2017-03-20/tail-risk-hedges-at-record-costs-signal-possible-vix-jump-chart

To: Don Green who wrote (18850)	3/26/2017 10:29:28 PM
From: Chip McVickar	2 Recommendations Recommended By ggersh John Pitera Respond to of 33421

Yes - Thank You... Very interesting - the first lines gave away the articles insight - "While solicitously "guiding" the markets to its "earth-shaking" 0.25 percent interest rate increase last Wednesday, the Fed has been expanding its balance sheet – big time -- by buying a huge amount of assets in exchange for cash to reassure equity and bond traders. Only during the two weeks preceding the push of the federal funds rate (interest rate banks charge each other for overnight loans) to the 0.75-1.0 percent range, a total of $115.5 billion of new liquidity has been created."