|Day's Range||12.54 - 14.35|
|52 Week Range||11.03 - 36.20|
Confidence is soaring among small business owners. But one group of small business owners is becoming more pessimistic about America’s economy — small business manufacturers.
Elevated net short positions in Cboe Volatility Index futures are reminiscent of a similar spike in 2017, when prolonged calm in U.S. stocks prompted a rush into short-volatility exchange-traded products. The index has risen past 14.
President Trump's latest comments on the trade war front should serve up a valuable lesson to investors.
(Bloomberg) -- The rally in U.S. stocks may have waned, but equities are still near record highs amid subdued volatility. For some strategists, that may be the perfect time to seek protection.Macro Risk Advisors suggests a trade that involves selling a put option on the Cboe Volatility Index with a strike of 12, while buying a 20 call and selling a 22 call. Derivatives strategist Maxwell Grinacoff wrote in a note Tuesday that he backtested the strategy, both unconditionally and when VIX was below 13, and found it has performed relatively well since the beginning of 2018.“We believe VIX has neared its theoretical floor for the year,” Grinacoff wrote. In addition, historical correlation trends in the S&P 500 around earnings season imply “a higher level of realized volatility going forward.”These calls for vigilance are already bearing fruit. The VIX touched its highest level in nearly a month on Wednesday after a report that the U.S. and China are unlikely to reach a trade deal this year.Read: ‘Giant Risk Event’ Makes Hedging a Good Bet in 2020, TD SaysEurope long volatility looks relatively attractive with the VStoxx Index so low, UBS Group AG strategist Stuart Kaiser wrote in a note Nov. 17. The European volatility gauge fell to 11.54 on Nov. 15, compared with this year’s mean of about 15.3. Kaiser also likes the iShares Russell 2000 ETF as a preferred medium-term growth-sensitive hedge.Put-option strategies on the SPDR S&P 500 ETF Trust are seen as the most attractive hedge by Credit Suisse Group AG.Evercore ISI agrees with that. The firm’s options team recommends buying SPY February $304 puts and selling $287 puts, strategist Dennis DeBusschere wrote in a note Tuesday, citing weakness in U.S. growth data, a slowdown in China and defensiveness showing up in VIX futures. The February expiry includes the U.S.’s advance fourth-quarter gross-domestic-product report on Jan. 30, he said.“Since the S&P is making new all-time highs, now is an opportune time to hedge,” DeBusschere said.(Adds VIX trading on Wednesday.)\--With assistance from Luke Kawa, Rita Nazareth and Dave Liedtka.To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Ravil Shirodkar, Yakob PeterseilFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Global markets traded almost unchanged on Tuesday morning. US indices have managed to pull through the corrective moods, and futures for the S&P500; index have returned to historical highs. Asian indices traded almost flat.
COT on commodities in week to November 5 showed how trade hopes and weather developments drove position changes from oil and natural gas to gold and coffee
“Good investors take advantage of exactly what’s happening right now… over other people’s anxiety," the wellness guru told Yahoo Finance.
Outspoken former White House Communications Director Anthony Scaramucci claims the president is 'unhinged' and in 'steady decline.'
President Trump’s latest Twitter escapade against the Fed calls for negative interest rates to jump-start the slowing economy. But the prospect of using a monetary tool usually reserved for deeply-troubled economies has many strategists on Wall Street seriously worried. Butcher Joseph Asset Management Chief Investment Strategist Nancy Tengler believes the practice of implementing negative interest rates is “seriously dangerous.” The “$16 trillion in negative yielding debt around the globe - I don't understand how you account for it as an investor,” Tengler said in an interview on Yahoo Finance’s The Final Round.
The relationship between President Trump and Fed Chairman, Jerome Powell has been a contentious one the past few months.
Hong Kong’s tumbling equity market is stoking fears for the economy, as well as the stability of the capital markets.
Wall Street fell again on Thursday, abruptly reversing early gains after U.S. President Donald Trump put concerns about the U.S.-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports. Having spent most of the session on track for their best day since June, all three major U.S. stock indices took sudden U-turns as investors quickly turned into sellers after the tweet.
Wall Street abruptly reversed its gains on Thursday as U.S. President Donald Trump tweeted that he would impose an additional 10% tariffs on $300 billion in Chinese imports, sending the long-running U.S. China trade war that has rattled markets for months back to center stage. Trump's remarks also sent U.S. Treasury yields lower, with the 10-year yield dropping to its lowest level since November 2016.