- Is the market on verge of steep decline? Darr Sabko Lagta Hai 🙁
- How do you buy FEAR? Buy CBoE VIX index
- Risk comes in two flavors: “shallow risk” a loss of real capital that recovers relatively quickly, say within several years; and “deep risk,” a permanent loss of real capital.” – William Bernstein
- When traders are confronted with deep risk - there is usual flight to safety trade. People chase dollars, Gold and Bonds.
- How much Yields have collapsed over last 20-30 years?: Average yields for 10-year notes in the U.S., Japan, Germany and the U.K., which have issued more than $25 trillion in government debt in a chart.
- Never before have traders paid so much to own trillions of dollars in debt and gotten so little in return ~ Bloomberg.com.
- What everybody is talking today: Yield on Germany's 10-year bund turns negative for first time.
How about this for unintended consequences: Negative yields are eroding confidence.
— Northy (@NorthmanTrader) June 14, 2016
- BREXIT which was not a risk event is now turning out to be real. More polls now indicate that people are more in favor of BREXIT
a combination of lower oil and brexit will make these next ten days tougher than they should be for certain...
— Jim Cramer (@jimcramer) June 14, 2016
- BREXIT - means keep an eye on British Pound. Any decline below 1.37-1.39 can result in free fall
- Scare talk is all fine but one fact you cannot forget: S&P500 continues to trade near all time highs.
- It's very complicated for everybody, even for the professionals at this point. ~ Louis Yamada
- The Bullish argument: How can equities collapse when dividend yield is so high. There is TINA factor for equities.
- The opinion is divided: Has Microsoft done a good thing by acquiring LinkedIn?
The Microsoft LinkedIn deal is so stupid it is the kind of thing that happens at market tops. Also, it makes me want to short Microsoft.
— Jonathan Tepper (@jtepper2) June 13, 2016
- Is Twitter Next? Well, you cannot blame traders if they believe so. Twitter bottom in place?
- Intel missed out the smartphone revolution. Qualcomm just took away all the market. But now the news: Intel going to power new Apple iPhone. Will this turnaround Intel?
- Sin Portfolio = Buy stocks that encourage Smoking, Alcohol and Gambling. What's amazing: these companies have enormous pricing power.
- Smoking rates have been declining in the U.S. for decades but cigarette companies continue to make money for investors by increasing prices, cutting cost and buying back shares. Here's Altria number one cigarette company in US
- Following Money: In last few months, money is moving out of stocks but flowing into Real Estate ETFs.
- Twitter wisdom.
- Do you like State of the Market Website. Please support it. Purchase the Video Book - Science of Stock Price Action and get full access to all the additional content for 6 months.
Trading is not always about profitability … sometimes its about smart protective hedging.
— David Stendahl (@David_Stendahl) May 26, 2016
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers