Market Structure Insights
April 21, 2021
Google chose as motto “don’t be evil.” “Beware derivatives” isn’t a bad motto either. If you’ve read the MSM long, you know we’ve beaten the drum like Boneshaker (when you hear the sound of the drum, here we come) over the risk in derivatives. Oh...
April 14, 2021
In Lake Jackson, TX, you can take This Way or That Way. No, really. I snapped that shot Friday at the corner of This Way and That Way in LJ. And yes, that rhymes. And yes, it’s a metaphor for the stock market. It goes...
April 7, 2021
Do you know traders could have made 580% in the S&P 500 the past 200 days? Public companies, your stock need not rise. I’ll explain. The S&P 500 is up almost 20% the last six months. The math says 454 of the 500 are...
March 31, 2021
The stuff Archegos used expires today. Sound like Greek? Let me explain. A hedge fund blew up. Its counterparties are taking huge hits. There are ramifications. What happens? Maybe nothing. Maybe everything. First, let’s understand “counterparty.” A counterparty accepts the risk of the opposite of...
March 24, 2021
Public companies and investors, is the Federal Reserve using cash to hurt you? What? Quast, don’t you mean they’re inflating stocks? To a point, yes. And then history kicks in. There’s no such thing as “multiple expansion,” the explanation offered for why stocks with no...
March 17, 2021
Couldn’t blame you if you missed it. For many, these past few weeks and the ones coming up are the busiest on the IR calendar. Board presentations, ASMs, virtual analyst conferences and investor days. You just finish year-end events and Q1 reporting is rushing...