| September 13, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |  LODAS Markets CEO Brian King Talks About Creating Liquidity in a New Real Estate and Alternative Assets Marketplace JohnLothianNews.com Brian King, the CEO of LODAS Markets, talked with JLN's Sarah Rudolph over Zoom about the company, which he founded in 2021 to create a marketplace for trading private REITs and other alternative assets that are not listed on stock exchanges. LODAS stands for "Liquidity On Demand As a Service." Founded in 2020, it is registered as an alternative trading system (ATS). Watch the video »
| | | | | | Lead Stories | | | Hedge Funds Add Bets on Yen Rally as Currency Rises 1% Again; They are buying Aussie and Swiss franc puts versus yen; BOJ is signaling that it's prepared to raise rates again
David Finnerty - Bloomberg
Some hedge funds are adding to wagers on yen strength in the options market on expectations that the currency will extend a rally that's made it the world's top performer this quarter - and saw another 1% daily gain on Friday.
They're placing bets on the yen against currencies including the Australian dollar, Swiss franc and the offshore Chinese yuan, according to traders, who asked not to be identified commenting on the foreign-exchange market.
/jlne.ws/3z7BhVj
The Vix Waves a Yellow Flag; Breadth was better during today's rally, but the VIX is reaching levels that have started to give pause. Let's also look at charts of TSLA, SPOT, AMT, DKNG, and TREX.
Helene Meisler - TheStreet
At least breadth finally improved today. Of course, it did so at the expense of the mega-cap names, which is just fine since the SOX and QQQs are at resistance. In fact, a few down days would be a good test to see if the buyers show up again.
Aside from that, not much changed except that we saw the AAII Bulls collapse much the same way the Investors Intelligence Bulls fell. They were down 5.5 points to 39.8%. It seems they did no fence-sitting at all because they jumped right into the bear camp as bears rose 6 points to 31.
/jlne.ws/4eps9dE
Here's the battle playing out in stocks that's driving volatility, according to strategist
Joy Wiltermuth - MarketWatch
It's another choppy session for stocks heading into the final bell, with the Dow having given back most of its earlier gains only to quickly switch course and march higher.
"There is just this battle, if you will, between people who think the Fed is late and the economy is slowing down, and those who think the economy is pretty healthy," Scott Helfstein, head of investment strategy at Global X, told MarketWatch. "That's what's flipping the market back and forth."
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Single-Stock ETF Boom Intensifies With 18 Bets on Overseas Firms; Precidian aims to introduce 18 ETFs, each linked to an ADR; ETFs would track firms such as Toyota, HSBC and hedge FX risk
Isabelle Lee - Bloomberg
The single-stock ETF frenzy is going global, with a new bid to launch products that give US traders a way to bet directly on overseas companies - without fretting about currency risk. Precidian Funds last week filed to introduce 18 exchange-traded funds, each of which will hold American depositary receipts for one company based outside the US, including Toyota Motor Corp., AstraZeneca Plc, HSBC Holdings Plc and Novo Nordisk A/S. The ETFs, if greenlit by the US Securities and Exchange Commission, will use currency swaps to try to protect against the exchange-rate fluctuations that come with traditional ADR investing, and also offer performance that generally corresponds to the total return of the underlying stock in its local market. ADRs give US investors exposure to companies abroad, and also help those firms gain access to American capital markets.
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6 Wall Street experts share why investors could be overestimating how much the Fed will cut rates after August's inflation report
William Edwards - Business Insider
Headline inflation fell to 2.5% year-over-year in August, dropping significantly from 2.9% in July to its lowest level in over three years.
Yet the report spooked investors, with the S&P 500 falling 1.4% in the first hour and a half of trading on Wednesday because a secondary inflation measure came in a touch too hot.
/jlne.ws/4dWzxgy
| | | | | | Exchanges | | | ICE's EURSTR Futures Open Interest Exceeds 500,000 Contracts
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider technology and data, today announced that ICE's EURuro Short Term Rate (EURSTR) futures hit open interest of over 500,000 contracts on September 11, 2024. ICE's EURSTR futures and options clear alongside 16.2 million lots of open interest in Euribor, the benchmark for managing short term euro-related interest rate risk. Open interest across ICE's interest rate complex is up 14% year-over-year (y/y) at over 25 million contracts. Meanwhile average daily volume (ADV) across the interest rate portfolio was up 55% y/y, as at the end of August 2024, including Euribor ADV up 50%, SONIA ADV up 56% and Gilts ADV up 48%.
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| | | | | | Regulation & Enforcement | | | Elections Bets Go Live on Kalshi After CFTC's Court Loss; Agency appealed district court's ruling overturning stay; CFTC rulemaking to prohibit elections contracts still pending
Sabrina Willmer and Lydia Beyoud - Bloomberg
Kalshi Inc. started taking wagers on the 2024 congressional elections less than an hour after a federal judge allowed the exchange to let Americans bet as much as $100 million on the outcome.
Kalshi posted new event contracts at 12:15 p.m. Thursday after a hearing concluded with US District Court Judge Jia Cobb denying the Commodity Futures Trading Commission's repeated requests to block the listings. The CFTC had sought a stay of Cobb's ruling from Friday in Kalshi's favor to allow the trading of elections-linked derivatives.
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Grifols Seeks Adviser to Help Deal With Minority Shareholders; Board is seeking consultancy firm for investor outreach; Grifols family, Brookfield working on bid to buy drugmaker
Clara Hernanz Lizarraga and Jorge Zuloaga - Bloomberg
Spanish drugmaker Grifols SA, the target of a short-seller attack earlier in the year, is seeking to hire an external consultancy firm to help deal with minority investors as it faces a takeover approach. Grifols's board has asked several Spanish firms to draft proposals, according to people familiar with the matter, who asked not to be named discussing private matters. The firm would be responsible for outreach to shareholders and managing certain communications, the people said.
/jlne.ws/3MH1bCe
India market regulator chief says she complied with all required disclosures
Jayshree P Upadhyay - Reuters
The head of India's market regulator said on Friday she had complied with all disclosure guidelines issued by the Securities and Exchange Board of India (SEBI), rejecting allegations levelled by the country's main opposition party and a U.S. short seller about a conflict of interest. "Madhabi has complied with all the disclosure and recusal guidelines of SEBI, and in fact, maintained a proactive continuing recusal list with SEBI over and above the requirements under the guidelines," Madhabi Puri Buch said in what she called a personal statement.
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| | | | | | Strategy | | | Strands Technologies, Ltd., a Global Fintech, Releases Second Derivatives Trading Strategy: Covered Put on CME Group (CME) Ethereum Futures; Independent software vendor (ISV) Strands is a commercial solution that strands together on-chain and traditional markets enabling unique execution capabilities
Ethan Lee - Techbullion.com
Strands is a global Fintech company using a proprietary ecosystem of novel smart contracts and transactional gateways to develop the most advanced traditional and decentralized institutional transactional platform ever brought to market. Strands is the first Independent Software Vendor (ISV) to tokenize US exchange traded futures and futures options contracts giving its customers unique advantages in the white-hot real-world asset tokenization space.
/jlne.ws/4eiu8QG
| | | | | | Education | | | What VIX Tells Us About Opportunity in Low Vol ETFs
Cinthia Murphy - ETF Trends
For a brief moment, volatility picked up in early August and again in early September. We saw some appetite reappear for low volatility ETFs, which have gotten no love in 2024.
A fund like the Invesco S&P 500 Low Volatility ETF (SPLV), a strategy that owns the 100 least volatile stocks in the S&P 500, saw net asset flows turn modestly positive since Aug. 1 as investors refocused on risk management amid market turbulence. This is a fund that entered August with more than $1.5 billion in net outflows since January 2024. That made us stop and take notice, wondering if the money coming was signaling a meaningful change in investor behavior.
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| | | | | | Miscellaneous | | | The "Nickels and Dimes" Concept of Options: A Strategy for Building Steady Returns
Paul Feinstein - LinkedIn
At Audent Global Asset Management, we believe in putting clients' assets to work in ways that generate consistent, reliable returns. One of the strategies we employ to achieve this is referred to as "Collecting Nickels and Dimes." This approach utilizes options trading to create small but steady streams of income over time-income that, when compounded, can make a significant impact on a client's financial future.
/jlne.ws/47pbaFQ
Retail Crowd Scoops Up CME's Micro Gold Contract as Precious Metal Soars
Yvonne Yue Li - Bloomberg
Retail investors are pouring into CME Group Inc.'s micro gold futures contract while the precious metal sets another record. The average daily volume - an important metric used to assess the liquidity and activity level of a derivative - stood at 99,527 contracts as of Sept. 11, surpassing the amount for all of 2020 when it reached an all-time high of 86,101 lots, according to data from the US's largest derivatives exchange.
/jlne.ws/4emiMLt
***** What a great way to trade gold!~JJL
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| | | Jeff Bergstrom
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