As we head into the fiscal cliff and a potential European solution/crisis one thing strikes me, risk is not being priced into financial assets.
XLF, Payment Processor IV Cheap, Trade?
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The Banks Are Toast for Now
There is a pattern beginning to shape since the election and for the most part it is not good for equities.
Is the Market Liking FB?
Between the budgetary haggling and the Greek financing issues, the market has plenty to keep itself on hold.
Was Yesterday the SPX Bottom?
For the second day in a row, we have seen the SPX break a significant ‘technical’ barrier. Yesterday the SPX failed to hold 1400; yesterday the SPX on another decent sell off broke the 200 day moving average.
Fixing the Funky Euro
I am guessing the Fiscal Cliff solution will happen by Jan 1st since we cannot keep the $ 1 Trillion of spending going forever unless this country wants to emulate the cradle of democracy, Greece. This brings me to trading the FXE.
Walking Backwards
The FED did not do much for the market yesterday. Judging from the lasting effects of QE3 they did not do a whole bunch the last time either.
A Stock that Acts Like a Bank and a Utility All Rolled into One
If you are an investor looking for a less volatile place in the market, look at MSFT.
This Is What a Hedged Market Looks Like
I have been commenting for some time on why I do not see a sell off on the horizon. I see a fully hedged market place right now.
Corn Vol About to Explode Again?
For those of you not paying attention, despite the slow equity markets, there is a market where things are really moving around: Grains. Both SOY and CORN are getting smoked.
Hell May Have Frozen Over: VIX Calls May Be a Buy
One of the things that we are constantly teaching our option mentoring students is that one cannot simply look at the VIX in a vacuum. The VIX is all about relative movement.
How Would YELP Review This Short Squeeze?
The ECB had another chance to dazzle yesterday and all we got was nothing. There seems to be no end of disappointment to the Euro area problems. There is no reset button.
The Story of an Arrogant VIX Trade
When I think about times where I have seen new option traders lose a lot of money, there are a few that come specifically to mind. Early in the process, we work very hard to teach our option mentoring students proper risk management.