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A place for the Singapore investment community to share information and updates
FLCT’s manager appoints Ng Wah Keong as new CFO
Read: https://link.theedgesingapore.com/cdCB4Ne78uqsmXZv6
Follow us on: @theedgesg
By right, this Dec FOMC is suppose to a market friendly message, all hedges go off, markets rally nicely in december. Then after options expiry, we have a good correction of those 10-15% in Jan.
So now like that what happen?
I don't know man. This is as far as I know liao.
Hope you find this entertaining or useful.
I need to get back to my work. Sian.
CNBC Television (Youtube)
Mayfield: The shutdown drama in Washington could weigh on investor sentiment
Ross Mayfield of Baird discusses whether the inability to move legislation forward in Congress on funding the government and other issues, with such a narrow margin for the Republicans, could impact investor sentiment.
The Edge Singapore
Singapore Institute of Advanced Medicine enters into $5 mil loan agreement https://t.co/8BuvJ5ILG7
tweet
Sias to bring its ‘Invest Singapore’ programme to the heartland
https://www.straitstimes.com/business/sias-to-bring-its-invest-singapore-programme-to-the-heartlands
Nanofilm group CEO resigns, exec chairman and founder Shi Xu to take over again
Read: https://link.theedgesingapore.com/6GhGaeo3b7nLKvpt9
Follow us on: @theedgesg
Logistics Focused REITs Comparison @ 8 December 2024
https://www.reit-tirement.com/2024/12/logistics-focused-reits-comparison-8.html
(Seminar) Unlocking Yield: Mastering Your Portfolio in a New Rate Era
https://mystocksinvesting.com/seminars/seminar-unlocking-yield-mastering-your-portfolio-in-a-new-rate-era/
Portfolio & Dividend Update : 3rd Qtr 2023
https://stestocksinvestingjourney.blogspot.com/2023/09/portfolio-dividend-update-3rd-qtr-2023.html
Malaysia Airports US$4 billion takeover offer 'reasonable', deal adviser says
https://www.channelnewsasia.com/business/malaysia-airports-takeover-us-4-billion-blackrock-4819036
Portfolio & Dividend Update : 4th Aug 2024
https://stestocksinvestingjourney.blogspot.com/2024/08/portfolio-dividend-update-4th-aug-2024.html
Jun 2021 - Portfolio & Transaction Updates
http://www.3foreverfinancialfreedom.com/2021/06/jun-2021-portfolio-transaction-updates.html
UK watchdog says $35 billion Synopsys-Ansys deal raises competition concerns
https://www.channelnewsasia.com/business/uk-watchdog-says-35-billion-synopsys-ansys-deal-raises-competition-concerns-4818991
How To Profit Against Huge Inflation Ahead
http://www.3foreverfinancialfreedom.com/2021/06/how-to-profit-against-huge-inflation.html
There is a fair bit of volatility in the markets these few days. I will try to explain what I think it is and what might happen.
As most know, Jerome Powell cut interest rate on Wednesday night by 25 basis points but based on what was said, it indicates lesser rate cuts. The whole presentation did not present a clear message and gives an impression that those voting are more worried about recession.
Markets do not like uncertainty and the prospect of higher rates, will eventually affect the economy, profit margins, earnings per share, current fixed income securities in the market.
Markets are forward looking and therefore start pricing in these new pieces of information.
Prior to key events such as FOMC meeting, the markets are pretty hedged most of the time. This means that those who are worried about the performance of their portfolio would have bought put or insurance protection in one way or other. Market dealers are the people on the other side selling these protection. Their job (as they say) is to remain market neutral and so would hedge their (market makers) positions accordingly.
When the event risk is cleared (the Fed message is conducive to the market), the portfolio managers sell off their puts. The market makers, taking the other side of the trade, don't have to hedge so much, would buy back their short SP500 position.
Options market is getting bigger and bigger and this Dec will be one of the biggest options expiry ever.
When the market dealers buy back the short position, the market will shoot up.
Options amplified the move.
After that, usually the market is pinned. Pinning means you see the SP500 price movement to be very small. like one day up 0.2%, or down 0.3%. The market will be pinned close to the highest demand for call options. For example 6050. If no external force, the market cannot go higher, if the market gets sell down, there is a natural force (by the market makers) that will buy up those sell down.
Markets won't go down and won't go up. Pinned.
These natural balancing forces happen during positive Gamma.
But that is not what we see in this December.
During this December, the event was not what the market anticipated. This is what the put protection is for.
The market went lower.
If the market goes below a certain strike prices, instead of positive Gamma, we faced negative Gamma.
In a negative Gamma regime, the force is not balancing. When the market goes down, more people buy puts, when more people buy puts, the market maker short more (instead of buy the futures) to hedge their position.
Remember what happen to Gamestop? this is the reverse game stop.
Perhaps the clearest case study is during Covid period. In a short span of one option expiry window 20 Feb 20 , the market went down swiftly in one direction... until the next option expiry window in 20 Mar 20. Then, with positive news and no more options forces, markets can take off in Mar 20.
I have not check my sources, but I got a feeeling we are in this regime. We seen one more day of red despite starting green yesterday, and if we look at the futures, it does not look good.
So when will all this stop?
When options expire.
So when is the next major options expiry? Tonight and end of the year.
But what will happen next week? I don't know.
We will lose these forces, but the markets are always pricing in new information and if there are new positive information, markets are free to correct upwards. But if there are even more negative news, markets will go down.
So WTF Kyith how is this suppose to help me?
Well it is to kind of explain what we could be seeing so that it looks logically to you. But what you are suppose to be doing is based on your investment strategy or your financial plan. That I cannot guide you.Some of your time frames are different.
They always say the end of the year got Santa Rally because forces such as what I talked about are set up in such a way at the end of the year. The difference is that year by year, the environment context is different.
CNBC Television (Youtube)
Vernon: The challenge for the FedEx spin-off will be staffing and what costs will look like
Bernstein analyst David Vernon discusses FedEx's latest earnings, and whether the planned spin-off of the truck freight business will set the company on the right track.
CNBC Television (Youtube)
Starbucks union begins strike: Here's what to know
CNBC's Becky Quick reports on the latest news.
Singapore Institute of Advanced Medicine enters into $5 mil loan agreement
Read: https://link.theedgesingapore.com/vHJrnd9C9nGEyNMo8
Follow us on: @theedgesg
The Edge Singapore
Nanofilm group CEO resigns, exec chairman and founder Shi Xu to take over again https://t.co/nWF8w4wl9f
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Weight-loss drugmaker Novo Nordisk's shares fall on disappointing study
https://www.channelnewsasia.com/business/novo-nordisk-shares-fall-new-drug-study-results-ozempic-wegovy-weight-loss-4819086
Nanofilm Technologies reappoints founder as CEO
https://www.businesstimes.com.sg/companies-markets/nanofilm-technologies-reappoints-founder-ceo
Money and Me: Data Centered S-REITs; here is what you need to know
https://mystocksinvesting.com/monthly-market-update/money-and-me-data-centered-s-reits-here-is-what-you-need-to-know/
Beauty ( Value ) Is In The Eye Of Beholder
https://stestocksinvestingjourney.blogspot.com/2023/11/beauty-value-is-in-eye-of-beholder.html
2023 Portfolio & Dividend Update
https://stestocksinvestingjourney.blogspot.com/2024/02/2023-portfolio-dividend-update.html
Can Gold Future-Proof Your Investment Portfolio?
http://www.3foreverfinancialfreedom.com/2021/06/can-gold-future-proof-your-investment.html
HUYA Inc. - Post-Merger + Transformation in Business Model + Undemanding Valuation
http://www.3foreverfinancialfreedom.com/2021/06/huya-inc-post-merger-entity.html
https://youtu.be/FYFWsvv8MtY?si=gNbLbCUgulA4QlAr
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Italy fines OpenAI 15 million euros over privacy rules breach
https://www.channelnewsasia.com/business/italy-fines-openai-15-million-euros-over-privacy-rules-breach-4819041
Foxconn interest in Nissan on hold amid Honda merger talks, Bloomberg reports
https://www.channelnewsasia.com/business/foxconn-interest-nissan-hold-amid-honda-merger-talks-bloomberg-reports-4818801