Market Madness

Think less about low volatility, and more about the exits

3 interesting charts from the latest BOE Financial Stability report http://www.bankofengland.co.uk/publications/Documents/fsr/2014/fsrfull1406.pdf Vol is almost as low as it was pre-crisis… Although higher vol is priced ahead… But the difference now – there is more money in less liquid assets…

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Ukraine etc.

It’s all about Ukraine. Or rather, the spillover effect of a rise in geopolitical tensions onto volatility; of potential restrictions in gas supply to Europe; and of the macro economic impact of a deteriorating Russia. The facts today: * Russia unexpectedly raise rates in an extraordinary meeting, up 1.5% to 7%. The 1wk auction rate…

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Wibbly Wobbly Stocks

The new year has just begun and we already know it’s not been the easiest start to the year for many. In the next 48 hours we will see if the ECB take action over stubbornly low inflation, but more importantly, will the US jobs data show that January really was some kind of one-off…

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Calm before the storm?

Lowest non-holiday volume in 6yrs creates record high quote/trade ratio from the High Freq guys.  Who’s trading? #doom http://bit.ly/19IXqoN

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Baked in the cake.

Extremely overvalued, overbought, overbullish conditions for US stocks?  If rates rise, history says sell.  http://bit.ly/1aRETED 

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