The Two Wildcards

There are two wildcards in the market today. One positive and one negative.
  • The ECB is rumored to be cutting rates by 50 bps. This might make participants hesitant to stay short overnight and we could see a short covering rally.
  • Margin calls happen late in the day and might have been the culprit yesterday. We could see more today.

2 comments:

Chaos! said...

Have the ISE call/put numbers swung around?
I wonder if we're still seeing the expiration's effect in those numbers.
CBOE equity put/call is .74. Not the highest rwecently, but there is fear in a number that high.

Tsachy Mishal said...

Sometimes you have to use common sense and ignore these readings. There is no way people are that bullish right now. The CBOE is not confirming as you mentioned.