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EconMatters - Global Economic and Market Analysis That Matters

The VIX Setup and Equities Selloff Trade Examined (Video)

July 28, 2017 by EconMatters   Comments (0)

By EconMatters


We examine the market moves of the day that happened around 11:20 CST and provided some good price action and woke some traders out of their bored slumber this afternoon. The profit taking rotation out of the pricy tech darlings into the Dow Industrial more defensive blue chips, supported by a spike in the VIX, a flight to safety in Yen strengthening, a bid in Gold, all before some dip buying into earnings at the bell. I think we will get some more selling next week with Apple`s earnings, and start breaking some key technical support areas. The bulls became way too complacent, thinking they are guaranteed returns no matter what price levels just because volatility is so low, and no major risk factors are on the immediate horizon.

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EIA Oil Report Analysis 7-26-2017 (Video)

July 27, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the EIA Oil Inventory Report in this video, focusing on the fundamentals of the oil market with the third stellar oil report in succession, what the drivers for the positive reports has been, and what will determine next week`s price action in the commodity. Still not a lot of sticky money in the oil market yet, or we would be much higher given the run of drawdowns! Commodities can be priced all over the place given the exact same fundamentals; and currently no long term investors really interested in the oil market just yet. Capital has just been shocked to even think of commodities as investable assets over the long haul, shoot the Wheat Market outperformed crude oil this year!

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Options Pinning and Other Edge Creating Games in Financial Markets

July 25, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the idea of Options Pinning in this video spurred on by a viewer e-mail, and talk about some of the other games that occur in financial markets with regards to the derivatives market which has continued to gain in overall volume and size over the last 15 years. When in doubt follow the money, if there is money to be made, edge creation strategies are sure to follow! I am sure if you go to your local dog track there are edge creating strategies operating in the background, human beings are always trying to create an edge. It seems this phenomenon is probably genetically encased in our evolutionary DNA from a strategically significant strategy tool.

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Daniel Tarullo - Another FOMC Dove Who Fails To See Any Asset Bubbles

July 24, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the Bloomberg interview with former Fed Governor Daniel Tarullo where he explicitly states that there is nothing to worry about from an Asset Inflation Bubble Standpoint, he sees none at all. It seems the one thing the Federal Reserve is actually good at  Creating Financial Asset Bubbles, is the very thing they cannot discover in the economy. Yet all the other conditions like creating a 2% Inflation target, if we grant them recorded inflation numbers, or an outperforming GDP economy, they struggle mightily to attain after 10 years of extreme monetary policies. It is time replace economists on the FOMC with qualified, competent market participants, especially if they are going to be so involved in buying financial assets.  And no Neel Kashkari doesn`t qualify as a competent, qualified financial market participant. The Federal Reserve is so behind the curve, the Fed Funds rate should be 3.5% at the minimum right now!

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Cotton, Orange Juice, Coffee, Sugar, Cocoa and Lumber Markets (Video)

July 23, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the soft commodities in this video focusing on cotton, orange juice, coffee, sugar, cocoa and lumber markets. Food inflation starting to tick up the last couple of months. Every dog has its day, and different asset classes attract capital in investment cycles. Is the agricultural space ripe for a nice long five year run in attracting investment funds as equity markets become less attractive given their obvious overinvestment since the financial crisis as an asset class and quite expensive on any rational valuation metric or model? Financial Economics usually play out in fund flow allocation and the natural ebb and flow of the asset and economic business cycle.

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Comprehensive Financial Market Analysis 7-22-2017 (Video)

July 22, 2017 by EconMatters   Comments (0)

By EconMatters


We do a complete review of the major financial markets in this market video from Gold, Silver and Copper Markets, to Equities, Bonds, the VIX, and Energy following the weekly capital flows in and out of these assets. The FOMC Meeting Announcement on Wednesday will set the tone for the Trading Week!

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Market Moves Are Often Pre-Programmed Via Trading Algos (Video)

July 22, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss an identifiable trading algo in the oil market, and how it is tied to equities, natgas and the Japanese Yen in this particular instance. Carry Trades in the Central Bank QE World that we currently reside often alter standard long held correlations that used to exist in financial markets and asset classes. Sometimes Financial Markets have no Free Will! In other words, market moves are often predetermined well in advance oblivious to all other daily trading and economic considerations.

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EIA Oil Report Analysis 7-19-2017 (Video)

July 20, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the EIA Oil and Petroleum Products report in this video, focusing on what story the fundamentals are telling us about the oil market, and then check out the Price Action from a technicals standpoint. The Gasoline Market Backwardation clue really nailed this oil trade the last couple of weeks!

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Edge Sorting and Advantage Play in Trading Theory (Video)

July 18, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss the concepts of Edge Sorting and Advantage Play in regards to improving or creating an edge as a Trader in this video. There are a lot of ideas in Game Theory that can be applied to Trading Concepts to make you a better trader.

Here's a link: The new ESPN 30 for 30 podcast has just been released, focusing on Phil Ivey who employs some considerable Game Theory to create a statistical edge against the Casino who routinely has the house advantage over the player.

http://m.espn.com/general/cast?id=19472136&src=desktop

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The Economics Profession Is Bankrupt from a Values Standpoint (Video)

July 17, 2017 by EconMatters   Comments (0)

By EconMatters


We discuss why Macroprudential Regulation after such distorted Central Bank Policy Measures is a complete absurdity, why the Economics profession is corrupt to the core from a value and ideas standpoint, and why artificial markets always lead to disastrous results in the end. If you want wages to rise just have the central banks buy up workers, and put them on their books like bonds! The Monetization of the Debt model relies on Money Printing and Needs High Inflation to sustain the current Ponzi Scheme Loop for as long as possible. The Debt Model fails at the Household level, Business Level, and Government level; until economists get this notion inculcated in their little brains, there is no hope for the profession as a rational coherent enterprise for study and practice, let alone deciding monetary policies for the entire global financial and economic system!

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