It appears the rally in the financials is not dead after all. While the hyperbolic move is over there is substantial pullback from the near term highs. Most of the financial name pulled back 10% or more over the last week causing a nice pop in the near term IV. The good news is that the near term vol jumps in front of the earnings vol. One of my favorite time spreads is to buy earnings juice and sell near term juice for flat or better vol.
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I am not sure conundrum is the right word. Maybe it is more like a situation. VIX is falling very fast at this point with the 3 day weekend coming on the back of declining volatility across the market. Today the quick Weekend markup for IV went south in a hurry as we closed 13.79 in VIX and the 13 handle for the first time in 2016.
Stocks had a hard time today jumping up to all-time highs. The SPX started the day down and never looked back as the better than expected GDP revisions caused some rate concern. Greece’s PM also started back on the crazy train so that unsettled European markets after they were anxious to get to higher levels. FB is not feeling that right now.
AAPL just posted a big number and the stock is up $2 after rallying a couple of dollars today and many dollars for the week. I guess it is the big number that you have to print that counts. AMZN posted a giant revenue number last week but so far has been able to avoid accountability for actually ma
So the Fed came out today with the ball of confusion. Some want to raise and some do not. That is fair enough and I am starting to feel like the FOMC manages these messages to such a degree that not umbrage can be taken any party. They want things to be smooth. Since the Fed has more money than everybody else they will win.
Another day another rally in the good old USA as America Inc. keeps delivering the goods. More solid earnings and home start data got us off to another good start today. Market players are waiting on Yellen to report some lower to stabile rate news, which could send stocks even higher. I see that 200 number on the SPY and can’t help but think that is the next round number to cross the line.
Ahead of the big premier of Sharknado 2 tonight, I thought it would be fun to look at a potential trade on Comcast, which owns NBC, which owns SYFY, which is showing Sharknado. Do not be surprized if this showing ends up being the biggest broadcast in SYFY history. While SYFY is not a large part of Comcast, whether it actually has an effect on long term earnings or not doesn't matter. I think the ratings on the broadcast will be so high that tomorrow CMCSA might get a small bounce.
One too many mediocre earnings reports sent stocks swooning coupled with a “tough love” shout by one of the Fed bigwigs. The simple reason is that stocks have run and the reasons to keep buying them are less compelling. The big slowdown from the winter deep freeze keeps showing up in company earnings as many folks in the Midwest eastward stayed home and burned fossil fuel.
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