JP Morgan’s global head of macro quant and derivatives research (if you have that title, you should be a big deal!), Marko Kolanovic, says the market’s rising propensity toward violent moves up and down reflects bad liquidity. Bad Liquidity would…
View pageAs the Dow Jones Industrials surged over 300 points on April Fools Day, the behavior driving it was Exchange Traded Funds, not rational thought reacting to economic data. But aren’t ETFs manifestations of rational thought? Investors see, say, good Chinese…
View pageIs less more? This is the question anyone looking at the stock market as a barometer for rational thought – from stock-pickers to investor-relations professionals – should be asking. A Wall Street Journal article yesterday, “Passive Investing Gains Even in…
View pageIt’s all about the Benjamins, baby. What I mean is, Forex (FX) is the world’s most active trading market, with some $5 trillion daily in currencies changing hands on a decentralized global data network. It can teach us how to…
View pageDid Exchange Traded Funds drive the recent market rollercoaster? The supply of ETF shares moved opposite the market. The S&P 500 fell about 16% in December and rose around 19% from Dec 24 to March 5. In December, says the…
View pageAs dawn spreads across the fruited plain today, we’re plunging into Iceland’s Blue Lagoon. If we learn market-structure secrets here, we’ll report back next week. Meanwhile, stocks have been emitting the effervescence of a Sunday brunch mimosa bubbling a happy…
View pageHalf the volume in the stock market is short – borrowed. Why? It’s the more remarkable because stocks since late December have delivered an epic momentum rebound. A 15% gain is a good year. Half the sectors in the market…
View pageWe’re told that on Friday Jan 18, the Dow Jones Industrial Average soared on optimism about US-China trade, then abruptly yesterday “global growth fears” sparked a selloff. Directional changes in a day don’t reflect buy-and-hold behavior, so why do headline…
View pageDo we need another stock exchange? I’ve been asked this question repeatedly since Bank of America Merrill Lynch, Charles Schwab, Citadel Securities, E*TRADE, Fidelity Investments, Morgan Stanley, TD Ameritrade, UBS, and Virtu Financial agreed Jan 7 to collaborate on seeking…
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