Source: The Financial Express
The SPDR S&P 500 ETF is a hugely popular ETF that tracks the S&P 500 index – an index of a diversified group of large-cap US companies across eleven major industries.
5 Key Questions About The Federal Reserve’s Approach In 2021
Source: Benzinga
The SPDR S&P 500 ETF Trust (NYSE: SPY ) is up more than 70% from its March lows, despite the U.S. economy still limping along due to the pandemic. A large part of that market recovery is thanks to the Federal Reserve’s aggressive stimulus spending, so investors are right to be concerned about the approach the Fed will be taking in 2021 and beyond. Bank of America economist Michelle Meyer recently addressed five key questions investors may have about the Federal Reserve heading into 2021. 1. Will the Fed wait for inflation before raising interest rates? Meyer said “yes.” Under the basis of the Fed’s new “Flexible average inflation target (FAIT)” framework, Bank of America is projecting the next interest rate hike will come in … Full story available on Benzinga.com
Options Feedback Loop Revives Bust Warnings in Soaring Stocks
Source: Yahoo Finance
(Bloomberg) — As stocks extend their relentless rally from last year’s bottom, one measure in the options market is flashing a warning signal.Over the last 30 days, an average of more than 22 million calls traded across U.S. exchanges — close to a record, data compiled by Bloomberg show. That’s forced the dealers selling those contracts to buy the underlying shares to offset any option price drift, boosting their potential selling pressure to an all-time high, according to at least one model.To some, the feverish call-buying is fueling a bullish feedback loop in equities as market makers hedge their positions. Retail traders have stoked the frenzy, with JPMorgan Chase & Co. analysts noting that small-trader call option buying has rebounded abruptly after December’s seasonal dip. As signs of froth and bubble warnings abound, stock markets may be setting up for an intense gamma squeeze, according to Susquehanna International Group. For some analysts, Friday’s index option expiry will bring a test to the market.“Dealers are short calls due to the unprecedented call activity previously mentioned, and as a result have been forced to chase stocks higher to hedge,” Chris Murphy, Susquehanna’s co-head of derivatives strategy, wrote in a note to clients. “The unwind could potentially be violent given all the excess euphoria.
Investing Pros And Cons Of A Blue Washington
Source: Benzinga
The SPDR S&P 500 ETF Trust (NYSE: SPY ) rallied once again on Thursday, and investors are clearly feeling optimistic about the economy’s near-term outlook after Democrats successfully gained control of the Senate earlier this week. While a Democratic “ blue wave ” in Washington is certainly bullish for the market in several key ways, Commonwealth Financial Network chief investment officer Brad McMillan said Wednesday there are both pros and cons to Democrats running the show. Blue Wave Pros: The biggest near-term pro for investors is that Democrats now have a clear path to more aggressive stimulus measures, including the possibility of $2,000 stimulus checks. McMillan said the federal … Full story available on Benzinga.com
Mike Khouw Sees Unusually High Options Activity In SPY
Source: Benzinga
On CNBC’s “Options Action,” Mike Khouw spoke about an unusually high options activity in SPDR S&P 500 ETF Trust (NYSE: SPY ). He noticed the put-call ratio was 0.5 on Thursday and he sees it … Full story available on Benzinga.com
A Bullish Option Spread Setup For The Invesco Solar ETF
Source: Benzinga
Investors Going Bullish on TAN The Invesco Solar ETF (NYSE: TAN ) has been on a steep rise on the heels of bullish investor sentiment. A major push to more clean energy sources is a top priority in the United States. TAN has climbed +226% in one year and has outperformed the market in an intermediate and short term basis. Relative Outperformance As you can see from the table below, TAN has outperformed SPY in the 1 year, 6 months, 3 months, and 2 week periods. That can be a strong indicator that investors are bullish on solar energy. Source: MarketChameleon Option Order Flow Sentiment Also, option order flow sentiment has been steadily bullish. The table below shows that bullish call buying on average tops bearish put buying by more than a 4 to 1 ratio ($643K in bullish call buying vs $142K in bearish put buying). The … Full story available on Benzinga.com
Brace For “Another Volatile Day”
Source: Zero Hedge
Brace For “Another Volatile Day” After yesterday’s ‘malarkey’ – the worst start to a year for the S&P 500 in years – Robinhood’rs and their emotional support pigs were/are expecting a BTFD ramp. So far, not so much as stocks languish lower, unable to maintain any bounce overnight as China’s currency markets come back into play. S&P 500 futs are trading around 3680, unable to break above the 3700 level which, as SpotGamma notes , is the gamma-neutral spot for the markets… Due to this zero gamma position the options positioning experts are anticipating another volatile day . From a position perspective nothing seemed to change materially as seen in the charts below. There were small reductions in SPY puts>=SPY 370 – In the money puts closing on drawdowns is is generally what we expect to see. However in SPX in the money puts were not net closed which could infer “retail” (SPY) monetized the drop, but “pros” (SPX) are holding protection. Any addition of puts could lead to dealer shorting.
Commentary: Paul Ebeling on Wall Street, the Santa Claus Rally Extends | Live Trading News
Source: Live Trading News
#PaulEbeling #WallStreet #SantaClaus #Rally $DIA $SPY $QQQ $RUTX $SOX $VXX “The Bulls are driving the Santa Claus Rally in to the New Year” — Paul Ebeling Last Week’s Action Again the US economic data came in strong, the benchmark indexes finished on the highs. The small-cap stocks led Wednesday, cloud software, some chips and some online […]
So Far, The Bulls Are Disappointed In “Santa”
Source: Zero Hedge
So Far, The Bulls Are Disappointed In “Santa” Authored by Lance Roberts via RealInvestmentAdvice.com, Only Two-Days Left For Santa To Deliver Today’s newsletter will be a short update as not much has changed during this holiday-shortened week. Over the last month, we have discussed why we were positioning portfolios to participate in the traditional year-end “window dressing” rally. Such is also known as the “Santa Claus” rally. As discussed last week in “All I Want For Christmas Is A Bull Market.” “Whether optimism over a coming new year, holiday spending, traders on vacation, institutions squaring up their books before the holidays—or the holiday spirit—the bottom line is that bulls tend to believe in Santa Claus.” – Ryan Detrick While the statistics suggested that the last week of December should have been a bullish one, it didn’t entirely turn out that way. Okay, let’s be honest, it was just a bit disappointing. Lot’s of chopping around all week and a final spurt at the close yesterday.
The S&P 500 Just Did Something That Has Been Bullish Every Time Since WWII
Source: Benzinga
Since the beginning of November, the SPDR S&P 500 ETF Trust (NYSE: SPY ) has rallied 13.8% to close out a volatile and unpredictable year on a high note. Not only is the late-year rally good news for investors’ 2020 returns, it also may bode very well for 2021. Finishing Strong: On Thursday, LPL Financial chief market strategist Ryan Detrick said the closing two months of 2020 have been the best November and December for investors since World War II. Related Link: 10 … Full story available on Benzinga.com
