News Stocks 

Traders are preparing for Amazon to buy Kohl’s — even though Kohl’s says that’s not the plan

“In order to position for this, traders are paring hedges on the company, leaving them more directionally exposed to profit from a stock price increase” writes Joe Ciolli for businessinsider.com. Kohl’s is trying a novel approach to fending off the Amazon-led retail apocalypse: play nice with the enemy. Source: businessinsider.com Share This:

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Markets News Regulators 

The only thing scary about the Dow is that nothing seems to scare it

“Call it whatever you want, but the Federal Reserve is likely the biggest cause of the low volatility market, and most traders agree with me” writes unknown author for cnbc.com. I don’t think it’s a coincidence that the rise in passive investing has corresponded with the rise in low volume and low volatility.Passive investing, by definition, is a low volatility style of investment. Source: cnbc.com Share This:

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Markets News Stocks 

Stock market bulls are counting on solid quarterly earnings

“The U.S. stock market greeted the start of the earnings season with continued optimism” writes Anora M for marketwatch.com. Valuations are lofty, suggesting to some analysts that investors might have already fully priced in solid earnings growth.Read: 4 things that might surprise investors this earnings season According to FactSet, by Thursday 6% of the S&P 500 SPX, +0.09%  companies reported earnings, and about 80% of these beat expectations on revenues and profit.Large banks that officially kicked off the earnings season in the past week showed solid profits, setting the tone…

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News 

The ‘ultimate play’ on volatility on Wall Street is set for a rough quarter

“Low volatility and rising technology costs have forced a number of HFTs to merge or close up shop” writes Frank Chaparro for businessinsider.com.au. The bank slashed its expectations for the firm’s Q3 earnings per share by nearly 80% to $US.04 from $US.19.The firm posted weak earnings for the second quarter, which came in below Wall Street’s estimates.Average equities volatility were down 17% compared to Q3 of 2016 and volatility for commodities were down 27%, according to UBS. There were some bright spots, however. Source: businessinsider.com.au Share This:

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Crypto News 

Bitcoin rallies to hit a one-month high but experts warn of volatile event ahead

“The largest bitcoin exchanges in China have also shut down their operations there” writes unknown author for cnbc.com. And at the same time, major business leaders have poured cold water over bitcoin.Investors were concerned about the sharp price rise of bitcoin but also some of the regulatory clampdowns by China. Source: cnbc.com Share This:

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News Stocks 

Is It Time To Lock In Your Stock Gains?

“Stock replacement involves selling shares that have posted large price gains, then buying call options on these same stocks” writes Mark Kolakowski for investopedia.com. But the stock replacement strategy gives investors flexibility on two fronts: the door remains open to profit from future gains in the stock while paying the small price – in the form of options – to hedge against the downside.If Micron stock remains unchanged between now and February 18, the investor would suffer only small losses.With U.S. stock market indexes and valuations hovering near all-time highs,…

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News Regulators 

How Fed leadership uncertainty could make interest-rate volatility great again

“On one hand, the low volatility reflects that demand for derivatives to protect investors from interest rates has all but evaporated” writes Sunny Oh for marketwatch.com. Read: Fed’s balance-sheet unwind will be moment of truth for financial markets Until now, Chintawongvanich said, the Fed’s policy path has been largely predictable. Source: marketwatch.com Share This:

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Markets News 

JPMORGAN: Here’s what could cause the next financial crisis

“This is similar to the 2008 global financial crisis (GFC), when those that accurately predicted the nature of the GFC started doing so around 2006.”” reports businessinsider.com. Speaking of that meltdown, JPMorgan is quick to point out that it too was caused by a collapse in liquidity.After all, it was that same stimulus that helped rescue global markets from the abyss back in 2008, when the most recent crisis hit.JPMorgan has already coined a nickname for the next financial meltdown. Source: businessinsider.com Share This:

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