Back in September we looked at the near term prospects for higher bond yields after U.S. Treasuries had just come off of historic lows and the likelihood that at least one rate increase by the FOMC …
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Unless you invest from under a rock, you know that the Federal Reserve meets next week to debate interest rate policy. Fed Fund futures are currently pricing about a 20% chance that the Fed will …
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Here is a breakdown of a couple large, apparently directional sector etf trades today in the options market:
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Earlier I offered some updated thoughts on the current investment environment (MorningWord 6/28/16: Eyes Wide Shut). In summary, I’m less than sanguine for U.S. stocks. That has been my view since the start of 2015. …
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You know the drill on bond yields, there is little to none. In this environment, investors have crowded into equities that have better yields than their company’s debt, like utilities, pharma and telcos. From time …
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With the broad market finding its footing, a few percent below unchanged on the year, I might have thought that some of the early year “defensive” out-performers like utilities and telco stocks might have lost …
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Last night on CNBC’s Fast Money we debated two important issues related to the bounce in U.S. equities in the last week. First, after more than a 6% rally in the S&P since last Thursday’s intra-day …
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We’ve been pretty thematic in our trading the past few months on RiskReversal. Hedge your portfolio (e.g. IWM, SPY, QQQ), avoid anything with strong dollar and international exposure and hide out in treasuries (e.g. TLT), …
Continue readingHeading into Wednesday’s FOMC rate hike we adjusted our long positioning in the utility sector etf XLU. We rolled a long Jan 43 call into a long Feb 42 call to pick up deltas after …
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As we near the Federal Reserve’s last FOMC meeting of the year next Wednesday, the Fed Fund futures are implying about a 72% change that the committee will vote to raise interest rates for the …
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