---------------------------------------------------------
WU Market Neutral: Preparing for Round Two (UPDATED)
Want to read more?
Subscribe to thewealthumbrella.com to keep reading this exclusive post.
top of page
21 Comments
bottom of page
---------------------------------------------------------
Subscribe to thewealthumbrella.com to keep reading this exclusive post.
Several people have asked me for access to our NYSE and Nasdaq Derivative Volume indicator, as well as our Option Impulse indicator (which is an internal component of the Hedge). There are a few reasons why these indicators were not part of our shared “invite-only” indicators on TradingView. The main reason is that, to avoid overwhelming people with around 20 indicators, we decided to provide access only to the ones we use most frequently in our analysis and those that are directly actionable (like Bandbreaker, VIX ribbons for volatility trades, etc.).
That being said, I understand that occasionally some indicators come under the spotlight, and some of our most avid data crunchers would like to have access to them. Since…
Thanks for these frequent updates!
I've been thinking about this setup we're in, and I'm not overly excited about putting money back in the SP500 right now. I believe that the election year narrative is strong and in power, and as we know from Market Munchies, volatility is heightened during the election's autumn. I would be happy to buy the dip, especially if it happens around the first of November, but this time in between might be pretty shaky.
Keep an eye on the Japanese yen. On Infamous Monday, the yen dropped under 145 thru tightening by BOJ. The huge carry trade in the yen ran into margin calls, because it was all riding on borrowed money. To meet the calls,traders started liquidating, and one of the things getting liquidated was US equities—all our accounts got whacked. But then, the BOJ saw what it had wrought, and publicly stated no more yen tightening that would destabiize markets. This statement set the yen to weakening again, climbing this week to 145,146, 147…and today 149. 146 seems to be the breakpoint where the carry trade can restart! So it has! That’s right, yen-shorting has been proceeding this week, concurren…
Could the option model be used as a contrarian indicator? In summer 2023, it looks like it turned "bullish" right before the next leg down of the correction, and then turn "safe" right before the last leg down of the correction.. Similar happen in Apr 2024, so not sure what to think about it..
isn't option model bullish now?