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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: sense who wrote (155685)4/1/2020 12:28:06 AM
From: Secret_Agent_Man  Read Replies (2) | Respond to of 218870
 
Direct government intervention in the markets now... probably not fully appreciated by many participants... likely is not limited just to $ being thrown at the markets by government... but includes even government directly buying ETF's. The renewed suppression trade in paper metals could be government loading up on paper gold and paper silver... the government's agents using "the tools available" to control the market moves... while strategies are executed. Or, it could be Fed or member banks interventions backing the suppression trade... straight up. Either way... the only honest markets left are the "accelerated" markets like the broader market in most of the month of March...
All of the above and then some- wonder who is doing the programming? i mean that literally, what coder or team of coders to write the programs to execute their strategem-



To: sense who wrote (155685)4/1/2020 1:21:33 AM
From: TobagoJack1 Recommendation

Recommended By
sense

  Respond to of 218870
 
I like volatility, that which they are trying to sit-on



Suspect this time the sitting might not work as well because the virus doesn't care whether one is sitting or standing, and only wants one horizontal.

I wonder whether suppressed volatility begets more volatility. Of course we cannot know when more volatility.

Perhaps watching the credit market is the thing to do as that world now likely determines whether a viral-struck company lives or dies.



To: sense who wrote (155685)4/1/2020 1:30:06 AM
From: TobagoJack  Respond to of 218870
 
No faith

bloomberg.com

Hedge Demand Shows ‘No Faith in This Rally,’ Credit Suisse Says

Joanna Ossinger31 March 2020, 08:33 GMT+2

Investors are using the stock rally to reset hedges rather than chase upside, signaling little conviction in the rebound, according to Credit Suisse Group AG.

The S&P 500 Index is up 17% from its March 23 close, after gaining in four of the last five days. But it’s been a turbulent time for stocks -- and indeed, all asset classes -- as market gurus and economists struggle to assess the impact of the global coronavirus pandemic. The Cboe Volatility Index, or VIX, ended at 57.08 on Monday and hasn’t closed below 40 since March 5. Compare that with its lifetime average of about 19.2.

But it’s skew, a measure of how expensive bearish options are compared with bullish ones, that has the attention of Credit Suisse equity-derivatives strategist Mandy Xu.



“Investor sentiment remains extremely cautious as can be seen in equity-skew measures re-steepening significantly,” Xu wrote in a note Monday that declared there’s “no faith in this rally.” “In the options market, investors have taken advantage of the bounce by resetting hedges, rather than adding to longs.”

Xu notes technology stocks have been outperforming the S&P 500 but might be at risk if there’s more widespread deleveraging from the equity long/short community, which is heavily overweight on the sector. She recommends a bearish trade on an exchange-traded fund that tracks the tech-heavy Nasdaq 100 Index: Buy a June $148/$172 put spread.