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Now Inflation Has Become Good for Earnings


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#1 redfoliage2

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Posted 14 February 2018 - 01:24 PM

VIX dropping big and internals improving and inflation is good for earnings - what a change from a few days ago.



#2 libertas

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Posted 14 February 2018 - 01:27 PM

The vol sellers are back big time.



#3 redfoliage2

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Posted 14 February 2018 - 01:33 PM

The vol sellers are back big time.

You meant the VIX sellers?



#4 libertas

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Posted 14 February 2018 - 02:25 PM

 

The vol sellers are back big time.

You meant the VIX sellers?

 

Volatility sellers do sell the VIX futures and ETFs, but they also write puts and other more complex strategies.



#5 Data

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Posted 14 February 2018 - 05:29 PM

The VIX dropped while stocks were dropping in a move that's often referred to as a VIX slam.

 

In all likelihood, there is a lot of money being printed. Last week was a test for no QE.   The ECB balance sheet grew by just 2 billion euros.  They can buy up to $30 billion euros a month through September. 



#6 redfoliage2

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Posted 14 February 2018 - 06:58 PM

The VIX dropped while stocks were dropping in a move that's often referred to as a VIX slam.

 

In all likelihood, there is a lot of money being printed. Last week was a test for no QE.   The ECB balance sheet grew by just 2 billion euros.  They can buy up to $30 billion euros a month through September. 

It has not caused a crash in the market yet, but it did cause the total crash of XIV.  Obviously the VIX slam game was being played at the open today.


Edited by redfoliage2, 14 February 2018 - 07:01 PM.


#7 redfoliage2

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Posted 14 February 2018 - 07:14 PM

 

The VIX dropped while stocks were dropping in a move that's often referred to as a VIX slam.

 

In all likelihood, there is a lot of money being printed. Last week was a test for no QE.   The ECB balance sheet grew by just 2 billion euros.  They can buy up to $30 billion euros a month through September. 

It has not caused a crash in the market yet, but it did cause the total crash of XIV.  Obviously the VIX slam game was being played at the open today.  But why blame these manipulators since the CBs manipulate the market all the time.......................

 



#8 pdx5

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Posted 15 February 2018 - 12:27 AM

VIX dropping big and internals improving and inflation is good for earnings - what a change from a few days ago.

Moderate Inflation is usually good for stock bulls. But bonds will lose value in proportion to interest rate hikes.


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#9 NAV

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Posted 15 February 2018 - 12:33 AM

There is one thing i strongly agree with the cheif. Market action has got nothing to do with economic fundamentals or corporate earnings. All these correlations are fleeting.


Edited by NAV, 15 February 2018 - 12:36 AM.

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#10 12SPX

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Posted 15 February 2018 - 09:51 AM

There is one thing i strongly agree with the cheif. Market action has got nothing to do with economic fundamentals or corporate earnings. All these correlations are fleeting.

Interestingly though, there was a reaction after the CPI data whereas I think the past few years there has been little.  Bends the question with the tightening of interest rates and the Fed backing away from purchases could we be moving back to normal trading once again who knows, who cares.  As we look back I think the question will be, was this whole correction due to that volatility mistake or interest rates rising.  Right now it looks like it was the volatility with the 10-year hitting 2.94% earlier today.