| Jeff Bergstrom
Editor
John Lothian News | |
|
May 30, 2025 Lead Stories Opinion: The market got an expected boost from Nvidia - though traders mispriced the stock's options again; Traders have been overly optimistic about Nvidia's post-earnings moves. The S&P 500's potential is much clearer.
Lawrence G. McMillan - MarketWatch
The stock market got a boost on Thursday from favorable tariff news and from Nvidia, which reported earnings after the close on Wednesday. But overall the S&P 500 Index is volatile, though the chart of SPX is holding a moderately bullish heading.
Specifically, a move slightly below 5,800 was quickly reversed last week, and there is further support at 5,700. Overhead, the first resistance area is at 5,950, with the ultimate resistance being at the all-time highs at 6,150.
/jlne.ws/3SsjUEw
Wall Street Fear Index Holds Steady Despite Tariff Uncertainty
George Glover - Barron's
Investors were still feeling calm on Friday, shrugging off lingering uncertainty about whether President Donald Trump will be able to press ahead with his plans for sweeping tariffs.
The Cboe Volatility Index, a widely followed fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, was roughly flat at just over 19. Any reading below 20 tends to indicate relatively low volatility.
/jlne.ws/3HlDD6t
He called the 2008 crisis, took a 14-year break and today warns us that a fresh financial storm is brewing; Financial-crisis-era parallels seen as Steve Diggle returns to the volatility business
Jules Rimmer - MarketWatch
Steve Diggle's Artradis was once the biggest hedge fund in Asia. In the era of the global financial crisis and "The Big Short," his tail-risk fund - a portfolio of instruments that benefit from highly adverse market conditions - doubled its assets and returned $3 billion to investors in the process.
Diggle's strategy of being long volatility and short credit risk, with a particular focus on the then-nascent credit-default-swap market, proved tremendously successful as markets malfunctioned and asset prices collapsed. The fundamentally bearish approach proved tremendously successful as investors realized how badly risk had been mispriced in a long bull market stretching back to 2002.
/jlne.ws/43nXVVy
Sharp Decline in Volatility Index Catches Seasoned Traders Off Guard
Savio Shetty - Bloomberg
Good morning, this is Savio Shetty, an equities reporter in Mumbai. Nifty futures point to a flat start, and may follow Asian markets lower as uncertainties around President Trump's tariffs whipsawed the markets. Still, Indian stocks are poised for a third straight month of gains, helped by foreign inflows and improvement in earnings. The focus will be on Ola Electric after the firm's fourth quarter net loss doubled from a year ago.
/jlne.ws/4dCkvNC
China Hedge Fund Buying April Dip Extends Decade Gain to 1,485%
Bloomberg
A Chinese hedge fund that bought the dip in April when the nation's stocks plunged on fresh US tariffs has jumped 20% this year, extending its total return since inception a decade ago to 1,485%. Evolution Asset Management founder and Chief Executive Officer Wang Yiping pledged on social media in early April to bottom-fish China assets, even as investor angst grew over the escalating trade war. The move paid off, underscoring the advantages of combining human judgment with computer algorithms during wild market swings.
/jlne.ws/4kFHHgd
Trump tariffs are still a risk: 4 experts explain what could derail a stock market just 4% from record highs
Christine Ji - Business Insider
However, even if tariffs are defanged, Trump has other options to pursue the trade war.
The recent trade developments highlight the danger of more volatility for the stock market.
Donald Trump's tariffs were blocked and reinstated in less than 24 hours, highlighting that trade headwinds aren't subsiding anytime soon, even as the president's agenda hits legal roadblocks.
On Wednesday night, the US Court of International Trade blocked many of President Donald Trump's tariffs, including reciprocal tariffs and the 10% baseline tariff, and gave the administration 10 days to comply. A second court on Thursday also blocked the tariffs on behalf of two toy importers in Illinois.
/jlne.ws/4jr1HCc
Exchanges ICE Futures US to list new Arabica Coffee futures and options contracts
Maria Nikolova - FX News Group
ICE Futures U.S. plans to introduce new Arabica Coffee futures and options contracts that are priced in Metric Tons later this year.
Additionally, the new futures contract will allow for coffee to be stored in Flexible Intermediate Bulk Containers (FIBC's).
/jlne.ws/3FxSFph
25 Star Scholars Graduating from City Colleges of Chicago to Pursue Four-Year Degrees
CME Group
CME Group, the world's leading derivatives marketplace, is awarding 25 City Colleges of Chicago graduates with $5,000 scholarships as they move on to earn Bachelor of Arts or Bachelor of Science degrees. Since 2017, CME Group has partnered with the Mayor's office to support the Star Scholars program, contributing over $1 million to help graduates who have earned an associates degree at a Chicago City College achieve their higher education goals at four-year institutions. The program evolved from the CME Group Mayoral Award for Student Achievement, which began in 1986, providing millions in financial support to high-achieving Chicago Public Schools (CPS) students to pursue college degrees
/jlne.ws/3Hij8aX
Regulation & Enforcement SEC removes key hurdle for Ethereum ETFs by exempting staking from securities rules; The staking clarity from SEC could reshape ETF landscape despite one of the commissioner's backlash.
Oluwapelumi Adejumo - CryptoSlate
The US Securities and Exchange Commission (SEC) has issued new guidance clarifying that common forms of crypto staking do not fall under securities laws.
On May 29, the SEC's Division of Corporation Finance confirmed that those participating in staking activities, including self-staking, delegated staking, custodial, and non-custodial forms, are not required to register these actions with the financial regulator.
/jlne.ws/43Qmlam
CFTC Awards Whistleblower $700,000 for Enforcement Tip
Nicola M White - Bloomberg
A whistleblower will receive roughly $700,000 for providing information about misconduct that prompted the US Commodity Futures Trading Commission to open an investigation and take action.
"Whistleblowers often provide the most valuable evidence about wrongdoing," Brian Young, the agency's enforcement director, said in a statement on Thursday. "Today's award recognizes the courage it takes to come forward to the CFTC, as well as the critical role whistleblowers play in the CFTC's enforcement efforts."
/jlne.ws/4kmBdTV
Miscellaneous Two MIT Math Nerds Crack Open Legalized Gambling on Wall Street; Armed with a federal license and allies in Trumpworld, the tech start-up is pushing prediction markets across America into a legal gray zone: sports betting.
Justina Lee - The Wall Street Journal
During its short existence, Kalshi has taken a battering ram to the regulatory establishment in its bid to give Americans the inalienable right to bet on just about everything. The US election, Taylor Swift's next hit, volcanic eruptions, and even the Rotten Tomatoes score for How to Train Your Dragon.
Now, the seven-year old financial exchange is taking it to a whole new level by using its federal financial license to open up sports gambling nationwide, even in states where it is not legal.
/jlne.ws/43BVKg5
The Billionaire Odd Couple Whose Hedge Fund Is Killing It; Paul Marshall and Ian Wace have almost nothing in common-except a $70 billion fund with a top-secret algorithm. Says Wace: 'I don't think I have really ever agreed with anything that Paul has ever said.'
Caitlin McCabe - The Wall Street Journal
London investment duo Paul Marshall and Ian Wace outran competitors during the recent market turmoil with an unconventional trading strategy: a top-secret algorithm that analyzes tips from rival hedge funds and investment banks. It's Wall Street meets fantasy football. Stock salespeople and others across Wall Street submit trading recommendations to the duo's hedge-fund firm, Marshall Wace. The firm analyzes the ideas and rewards firms of top contributors with millions of dollars of commissions each year.
/jlne.ws/4kHhyxy
JLN Options is sponsored by: |
| 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
Publisher
Sarah Rudolph
Editor-in-Chief
Jeff Bergstrom
Editor |
|
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2025 John J. Lothian & Company, Inc. All Rights Reserved. |
|
