| August 29, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Spiraling Meme Stock Mania Puts Korea Market Regulators on Alert; Signs of overheating in Kosdaq on retail inflows, Goldman says; Short rally of meme stocks over changing themes may continue
Youkyung Lee - Bloomberg
South Korean retail investors are cycling through meme stocks so quickly that it's alarming regulators. In the span of eight weeks, they've driven short-lived rallies in the superconductor, salt and seafood sectors, following a months-long frenzy over anything related to EV batteries. The risks of margin calls is high, and leverage is worrying, Goldman Sachs Group analysts said.
/jlne.ws/47OSfEi
Wall Street Reels From Painful Month as Winning Trades Sour
Ye Xie, Denitsa Tsekova, and Michael Mackenzie - Bloomberg
A slew of interest rate-sensitive investing strategies took a beating through August as bets faded that the US Federal Reserve was on the cusp of easing monetary policy.
From buying meme stocks and dumping the dollar to betting against swings in stock prices, a swath of popular trades have become losers; stocks have bled more than $5.5 trillion while a bond rout pushed yields to the highest in more than a decade. Among the winners: Hedge funds betting that bond yields will rise anew. It's clear that Jackson Hole's hawkish message has been received loud and clear.
/jlne.ws/47VczUk
Bitcoin Soars After Grayscale Wins Appeal Likely Clinching First Spot Crypto ETF
Jack Denton - Barron's
Bitcoin and other cryptocurrencies soared on Tuesday after crypto asset manager Grayscale Investments won a key court decision that likely clinches approval of a spot Bitcoin exchange-traded fundâa long-awaited catalyst for digital assets.
/jlne.ws/45v4iF5
Investors are getting bullish about 10-year Treasuries after a wave of volatility in August
Joy Wiltermuth - MarketWatch
Investors who are skeptical about a "soft landing" for the U.S. economy think now is a good time to consider buying long Treasury bonds, particularly after a wave of volatility in August pushed yields higher.
Yields rose in August as economic growth looked to be revving back up in recent data with the Federal Reserve Bank of Atlanta estimating a 5.9% gross domestic product growth rate in the third quarter, even though the Federal Reserve has already jacked up interest rates to their highest level in 22 years.
/jlne.ws/3L2ZEGl
Wall St surges, Treasury yields retreat as data hints at potential Fed pause
Stephen Culp - Reuters
Wall Street jumped on Tuesday and Treasury yields dropped amid light, pre-holiday trading as a smattering of weak data had investors rejiggering their expectations for U.S. monetary policy. A broad rally sent all three major U.S. stock indexes sharply higher, as investors looked ahead to crucial economic data due later this week that could sway the Federal Reserve's interest rate decisions in the coming months.
/jlne.ws/3KXaNYX
Column: Crude oil prices stalled as hedge funds sold
John Kemp - Reuters
Crude oil prices have stalled as the wave of hedge fund buying that helped lift them throughout July and the first part of August has been replaced by gentle selling. Hedge funds and other money managers sold the equivalent of 30 million barrels in the six most important petroleum futures and options contracts over the seven days ending on Aug. 22.
/jlne.ws/3qWecAw
| | | | | | Exchanges | | | Binance Will Offer 'T+3' Daily Options for BNB/USDT
Omkar Godbole - Coindesk
Leading cryptocurrency exchange Binance said its trading division Binance Options will offer "T+3" daily call and put contracts tied to BNB, a cryptocurrency closely linked to the exchange.
Starting Wednesday, Binance Options will list the T+3 BNB/USDT options every day at 08:00 UTC. New listings won't happen on days longer duration contracts expire, the exchange said in the official blog.
/jlne.ws/3YUyO8U
| | | | | | Regulation & Enforcement | | | The SEC Releases New Information Regarding A FINRA Rule Change For Options Trading - Cboe Global Markets (BATS:CBOE)
Benzinga
The U.S. Securities and Exchange Commission (SEC) has released information regarding a proposed rule change by the Financial Industry Regulatory Authority, Inc. (FINRA). This change is intended to provide relief in margin requirements for specific index options transactions, referred to as "protected options," and aligns with a similar rule change proposed by Cboe Global Markets CBOE with the SEC.
/jlne.ws/3PhwZzP
FIA responds to CFTC proposed rule on Part 17 Large Trader Reporting
FIA
FIA has submitted a response to the Commodity Futures Trading Commission's Large Trader Reporting Requirements Notice of Proposed Rulemaking and accompanying Guidebook for Part 17.
Overall, FIA supports the CFTC's efforts to modernize the large trader reporting process and transition from the 80-byte reporting format to a FIXML reporting format. However, there remain outstanding issues that the CFTC should address to accomplish the goal of modernizing its reporting rules in a way that promotes transparency and quality of data. For instance, reporting firms, particularly smaller firms and foreign brokers, need additional clarity, in writing, on the types of data to report for certain data elements.
/jlne.ws/45NWy0H
| | | | | | Moves | | | Cboe Global Markets is looking for a vice president of tokenization strategy. You can find the details for the job HERE.
| | | | | | Strategy | | | This strategist says smart investors should hang on to stocks. Here's why.
Barbara Kollmeyer - MarketWatch
That the month of August is stacking up as something of a disappointment for stock investors shouldn't be a huge surprise.
The Stock Trader's Almanac tells us that August has delivered the second-worst month for the S&P 500 SPX over the past 35 years. September has also proved a bit bumpy somewhat, historically.
With that in mind, and after a hairy 2022, some investors have taken money off the table in an attempt to preserve some of the bounce seen this year.
/jlne.ws/3R0qt1r
Stocks and Bonds Bid on JOLTS Report
Cboe (Video)
In #Vol411, Tim Biggam @Delta_Desk talks about the impact of today's JOLTS job report on #markets, seasonality, and active $VIX options trading in OTM Sept calls & ATM Sept puts.
/jlne.ws/3sBzDHS
| | | | | | Education | | | Stocks vs Options: Which is Right For You?
Dr. Jim Schultz - tastylive
Arguably, the two most popular alternatives for retail investors in the financial asset world are stock and options. Essentially the choice between owning and trading the stock itself, or turning to the derivatives market that lies beneath the stock to trade the option contracts in that market.
So how do you choose between the two? To help make that choice, it's helpful to look at the potential returns associated with the products themselves.
/jlne.ws/3R5qVfb
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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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