SHAREHOLDER ALERT: APA IQDNX CYDY: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

Barrons.com
GameStop Earnings Are Coming. Nobody Knows What to Expect.
The video game and electronics retailer hasn't provided an update on its numbers since mid-January, before Reddit investors took on Wall Street.
1h ago
Bloomberg
Wall Street Pros From Goldman to JPMorgan on New Inflation Era
(Bloomberg) -- It’s the invisible force rocking Wall Street: An inflation revival for the post-lockdown era that could change everything in the world of cross-asset investing.As America’s dalliance with run-it-hot economics sends market-derived price expectations to the highest in more than a decade, Bloomberg solicited the views of top money managers on their make-or-break hedging strategies ahead.One takeaway: The economics of trading from stocks and real estate to interest rates would be turned upside down if projections of runaway prices are to be believed.Yet there are clear divisions. Goldman Sachs Group Inc. says commodities have proven their mettle over a century while JPMorgan Asset Management is skeptical -- preferring to hide in alternative assets like infrastructure.Pimco, meanwhile, warns the market’s inflation obsession is misplaced with central banks potentially still set to undershoot targets over the next 18 months.The comments below have been edited for clarity.Alberto Gallo, partner and portfolio manager at AlgebrisLikes hedges including convertible bonds and commoditiesWe don’t know at this point if the inflation pick-up will be sustained, but it’s a good start. What we do know is that markets are positioned completely the wrong way. Investors have been long QE assets like Treasuries, investment grade debt, gold and tech stocks. They’ve been long Wall Street and short Main Street for a decade.There will be rotation into real-economy assets such as small caps, financials and energy stocks instead of rates and credit, and that will generate a lot of volatility. We like convertible debt in value sectors which are linked to an acceleration in the cycle. We also like commodities.We are turning from an environment where central banks pushed the accelerator by keeping interest rates low while governments pulled the handbrake with austerity, to one where governments and central banks are now working together.Thushka Maharaj, global multi-asset strategist at JPMorgan Asset ManagementPrefers real assets over commodity and price-protected bondsCommodities tend to be volatile and do not necessarily offer good inflation protection. As for index-linked bonds, our study showed their long duration outweighs the pure inflation compensation this asset offers. It’s not the top asset on our list of inflation hedging.If inflation were to rise and continue rising -- and we think that’s a low probability event -- equity sectors that are geared toward the recovery provide a good investment profile. We also like real assets and the dollar.We are expecting volatility in inflation, especially at the headline level over the next few months, mostly over 2Q, driven by base effects, excess demand in the short term, and disruption in supply chains caused by a long period of lockdown. We see this as transitory and expect the central banks to look through the near-term volatility.Christian Mueller-Glissmann, managing director for portfolio strategy and asset allocation at Goldman Sachs Group Inc.Issues warning on index-linked bonds and goldWe found that during a high inflation backdrop, commodities, especially oil, are the best hedge. They have the best track record in the past 100 years to protect you from unanticipated inflation -- one that’s driven by scarcity of goods and services, and even wage inflation like that in the late 60s. Equities have a mixed tracked record. We like value stocks as they are short duration.The biggest surprise is gold. People often see gold as the most obvious inflation hedge. But it all depends on the Fed’s reaction function to inflation. If the central bank doesn’t anchor back-end yields, then gold is probably not a good choice as real yields might rise. We see index-linked bonds as in the same camp as gold.A scenario of sustained inflation above 3% and rising is not our base case, but that risk has definitely increased compared with the previous cycle.Nicola Mai, sovereign credit analyst at PimcoSays inflation might undershoot central bank targets over next 18 monthsLooking through near-term volatility introduced by energy prices and other volatile price components, we see inflation remaining low in the near-term, with central bank inflation targets elusive over the next 18 months or so. The global economy has spare capacity to accommodate rising demand. If the spending were to be increased steadily over years, however, this would likely end up in higher inflationary pressures.We broadly like curve strategies and think U.S. TIPS offer reasonable insurance for an inflation overshoot. Commodities and assets linked to real estate should also benefit in an environment of rising inflation.Mark Dowding, chief investment officer at BlueBay Asset ManagementPares duration risk and warns on market complacencyReal assets such as property and commodities will hold value best in inflationary situations. Duration exposure on bonds is not attractive as yields should head higher over a number of years if inflation normalizes at a higher level than we have been used to. The most overlooked risk is that there is too much complacency because everyone’s inflation expectations are anchored based on what they have witnessed in the past five to 10 years.If there is a renewed economic slump, policy makers will be in a difficult position. Hence there is desire to make sure that you don’t miss targets on the downside. Like a golfer hitting a ball over a scary hazard, there is a temptation to go big! Ultimately this means that inflation outcomes should be higher not lower.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
8h ago
CoinDesk
Canadian Property Firm Buys Bitcoin in Hopes of Eventually Scrapping Condo Fees
The firm bought 0.4 bitcoin and plans to buy more every month.
2d ago
Reuters
Explainer: What rising bond yields mean for markets
Yields on U.S. Treasuries have surged to their highest level in more than a year from record lows hit in 2020, as Federal Reserve commitments to hold rates near zero for years to come encouraged investors to bet economic growth and inflation will heat up. Improving risk appetite has encouraged investors to buy riskier assets such as stocks rather than bonds. Weaker demand for debt was evident in last month's disappointing auction of seven-year U.S. Treasury notes that helped push up yields.
1d ago
Bloomberg
Cathie Wood’s Ark Has a New Price Target for Tesla: $3,000
(Bloomberg) -- Cathie Wood’s Ark Invest Management expects Tesla Inc. stock to hit $3,000 by 2025, up from its current price of $655. At that price, the company would be worth almost $3 trillion, based on the number of shares outstanding.Ark expects there’s a 50% chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly, according to a Friday note on Ark’s website.It also added Tesla’s insurance business into its model, believing the offering could be rolled out to more states in the next few years with better-than-average margins, thanks to “highly detailed driving data” the company collects.Wood has been among Tesla’s most ardent supporters, holding large stakes of the company in her flagship fund. When Tesla shares saw a pullback in February, she bought more.According to Ark’s new model, in the best case scenario, Tesla could reach $4,000 per share in 2025, and in the bear case, $1,500. The company forecasts Tesla’s unit sales to be between 5 million and 10 million vehicles in 2025, assuming increased capital efficiency.The $3,000 target is far higher than any analyst who covers the company, the highest being $1,200 among estimates compiled by Bloomberg. Fueled by zealous supporters, Tesla shares rose more than 740% last year, the best performance on the S&P 500. Elon Musk, its chief executive officer, became the richest person in the world in January, before Jeff Bezos reclaimed the title.Not CloseAnalysts have speculated about the prospect that Tesla will launch a robotaxi service since at least 2015, but there’s little indication its technology is close to making this possible anytime soon. Tesla recently told California authorities that human drivers will still need to constantly supervise a new city streets function within its “full self-driving” suite of features sold as part of its Autopilot package.As for the company’s insurance product, that began in August 2019 and is currently available only in California. The company includes vehicle insurance revenue within its “services and other” category, along with after-sales service, sales of used vehicles and retail merchandise. Last year, all of that business combined was about 7% of total revenue.Ark’s model didn’t incorporate Tesla’s utility energy storage or solar business, nor did it consider future price fluctuations for Tesla’s Bitcoin holdings.Barron’s reported the price target earlier.(Updates with background throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
9h ago
CoinDesk
Billionaire Hedge Fund Mogul Alan Howard Is a Shareholder in CoinShares
Now that CoinShares has gone public, more information about its shareholders is available.
1d ago
Reuters
Investors pour record money into equities even as bond yields rise - BofA
Investors put a record $68.3 billion into equity funds in the week to March 17, even as a spike in government bond yields sent the high-flying Nasdaq index reeling, BofA data showed on Friday. U.S. equity funds sucked in $53 billion as ultra-easy monetary policy continued to boost risk appetite. BofA warned of tightening global financial conditions, however, with eight interest rate hikes across the world so far this year versus five cuts.
2d ago
MoneyWise
Biden just canceled $1 billion in student loan debt. Are you eligible?
The administration is providing relief to 72,000 borrowers who said they were defrauded.
1d ago
Bloomberg
SSE, Equinor Kick Off Stake Sale in Biggest Wind Farm at Sea
(Bloomberg) -- SSE Plc and Equinor ASA plan to put a stake up for sale in what will be the world’s biggest offshore wind farm off the coast of the U.K.Offshore wind farms, some of the biggest renewable power plants, are in increasing demand from financial investors and energy majors looking to diversify their businesses. The utilities have appointed Rothschild and Co. to lead the equity sale and are in the process of raising the debt, Jim Smith, the managing director SSE Renewables, said in an interview.The 3.6-gigawatt Dogger Bank wind farm will use turbines the size of skyscrapers from General Electric Co. It will provide enough power for 6 million U.K. homes when the project is completed later this decade.The companies have divided the project into three 1.2-gigawatt sections. The current sale will be for a stake in the final 1.2-gigawatt area known as Dogger Bank C.Each company is expecting to sell 10% of its stake in the project, as they did last year when they sold a combined 20% stake in the first two phases of the project to Italian oil company Eni SpA for 405 million pounds ($560 million). The ultimate decision to sell will be for each party to decide, an SSE spokesperson said.A spokesperson for Equinor declined to comment.(Adds detail in second-to-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
1d ago
Benzinga
Bank Of America Calls Bitcoin 'Impractical,' And Crypto Community Has A Lot To Say About That
Bank of America Corp (NYSE: BAC) faced some backlash from the crypto community earlier today, after its criticism of Bitcoin from its latest research note made headlines. What Happened: The bank’s research note titled “Bitcoin’s Dirty Little Secrets” stated that there is “no good reason to own Bitcoin unless you see prices going up”. According to the bank, Bitcoin’s volatility makes it impractical as a store of value or a payments mechanism. Why It Matters: The research note was not well received by the crypto community who took to Twitter to share their thoughts about it. Samson Mow, CSO of blockchain technology company Blockstream, shared a graph of Bank of America’s stock price over the years and said, “If your stonk chart looks like this, you don’t get to call Bitcoin volatile.” If your stonk chart looks like this, you don't get to call #Bitcoin volatile. @BankofAmerica pic.twitter.com/nVpqlFhejY — Samson Mow (@Excellion) March 19, 2021 The research note also claimed that central bank digital currencies (CBDCs) would be “kryptonite for cryptocurrency”, which most users described as the “worst take” on cryptocurrency they have heard. Popular Bitcoin proponent Anthony Pompliano stated on Twitter that the Bank of America has a higher chance of failing than Bitcoin, and was quickly backed by most of his 650k followers on the platform. CZ, CEO of the largest cryptocurrency exchange by volume Binance, suggested that it wouldn’t be just Bank of America, but rather, all banks that would fail before Bitcoin did. Bank of America has a higher chance of failing than Bitcoin. — Pomp (@APompliano) March 17, 2021 The bank’s criticism, however, was appreciated by known Bitcoin critic Peter Schiff – According to him, the research report “concluded the obvious” and he went on to reiterate his belief that Bitcoin is the ultimate bubble. Bank of America’s stance on Bitcoin comes at a time where large institutions and public companies are buying and holding the digital asset on their balance sheets. Earlier this week, Morgan Stanley (NYSE: MS) said it would offer Bitcoin to its wealthy clients. At the time of writing, Bitcoin was trading at $58,500, up 5% in the past 24-hours. With over $1 trillion in market cap, Bitcoin is larger than JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc (NYSE: C) ,and Bank of America combined. See more from BenzingaClick here for options trades from BenzingaEthereum Could Overtake Bitcoin, Messari Analyst SaysBitcoin Mining Revenue On The Rise: Miners Record M In A Single Day© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
1d ago
FX Empire
GBP/USD Price Forecast – British Pound Continues to Look Sluggish
The British pound continues to look a bit sluggish, as we simply chop around in the same range that we have been in over the last couple of weeks.
2d ago
Bloomberg
BofA Sees Stocks on Track for $1.6 Trillion in Inflows This Year
(Bloomberg) -- If investors keep pouring money into equity funds at their current pace, it could add a “breathtaking” $1.6 trillion to stocks this year, Bank of America Corp. strategists say.Despite the market volatility spurred by rising bond yields and inflation bets, equity funds attracted a record $68.3 billion in the week through March 17, according to a BofA note on Thursday. On an annualized basis, additions will amount to the whopping trillion-dollar figure, smashing the previous record of $300 billion reached in 2017, strategists led by Michael Hartnett forecast.The flows indicate that equities remain the most popular investment instrument, notwithstanding the slump in frothier sectors such as technology. Bonds have seen inflows of $110 billion this year, only a third of the $347 billion into stock funds, as equity returns remain alluring with borrowing costs still near historic lows.Investors have so far favored U.S. stocks among major markets in 2021, adding about $138 billion, compared with just $264 million for Europe, according to BofA and EPFR Global data. In the past week, U.S. funds saw a record inflow of $53 billion.Looking at sectors, flows into technology shares continued despite inflation woes, with the sector attracting $3.2 billion in the past week, the sixth-largest ever, BofA said.Financial equities, which are a classic value play, were right behind tech with $2.6 billion inflows. Investors have been rotating into cheaper and cyclical sectors on bets that vaccinations will fuel an economic rebound.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
FX Empire
GBP/JPY Price Forecast – British Pound Gets Hammered Against Yen
The British pound got absolutely hammered against the Japanese yen on Friday, as we have developed more of a “risk off” type of attitude again.
2d ago
FX Empire
Oil Price Fundamental Daily Forecast – Buyers on Sidelines as Demand Concerns Cap Gains
Restarting vaccinations in parts of Europe is providing some support, but it may not be enough to offset lower demand caused by the renewed lockdowns.
2d ago
Bloomberg
SoftBank Seeks $1.2 Billion in Greensill Collapse
(Bloomberg) -- Greensill Capital owes more than $1.3 billion to creditors, with the bulk of those claims so far coming from the now-defunct fintech’s largest shareholder, SoftBank Group Corp.SoftBank, which had already invested $1.5 billion in return for a stake in the company that is now practically worthless, is owed $1.15 billion, people familiar with the matter said. It’s not clear whether it lent that money to Greensill in addition to the equity investment, or whether the latter was structured in a way that allows it to try and recoup money in creditor talks.In total, counterparties to Greensill submitted claims for more than A$1.75 billion ($1.35 billion), administrator Grant Thornton said in a statement Friday after a call between creditors concluded. The final tally may be significantly higher as further claims are made, and because some of the amounts submitted were placeholders while the actual damage is being determined.The figures show Greensill owes money to some 34 creditors, including its own German banking unit and a family trust in the name of founder Lex Greensill’s brother, from which it had borrowed late last year as it struggled to raise new money ahead of a possible going public. SoftBank had injected equity in the firm in 2019 and put hundreds of millions of dollars into funds Greensill ran with Credit Suisse Group AG. It’s collapse leaves Masayoshi Son’s Vision Fund with yet another damaging loss.SoftBank didn’t respond to requests for comment.Greensill filed for insolvency in the U.K. last week, after Credit Suisse froze the $10 billion group of funds that Greensill effectively ran. The Swiss bank, itself a creditor, made the decision after a unit of insurer Tokio Marine Holdings Inc. refused to provide new coverage for some of the short-term financings Greensill packaged into securities and then sold on to the funds. Tokio Marine and its Australian subsidiary are now also among the creditors.Even before the dramatic events of the past weeks, SoftBank had written down its stake significantly, Bloomberg has reported. Just a year earlier, a capital injection by the Japanese investor had valued Greensill Capital at $3.5 billion. In October of last year, Greensill predicted he would soon sell a small stake of the company for hundreds of millions of dollars, implying a valuation of roughly $7 billion.Now, the repercussions are hitting banks and investors across the world. Credit Suisse this week said it would suspend bonus payments for some top managers and weigh clawbacks as it tries to contain the fallout from its involvement with Greensill. The Swiss lender said it’s expecting defaults on some of the notes in the funds and that so far it has only recovered about $50 million of a $140 million loan to the firm. It also submitted a creditor’s claim.The first creditors meeting for Greensill’s collapsed supply-chain finance business in Australia on Friday lasted 55 minutes, with 59 creditors in attendance with their representatives. The Association of German Banks as well as German and Australian securities regulators were also on the call, led by Matt Byrnes, a partner at Grant Thornton.The creditors that have submitted claims exclude employees. Their number may increase as further claims are made during the administration, the Grant Thornton statement said. Another meeting is set for April 22 when creditors will have the opportunity to vote on Greensill’s future.Tokio Marine and its subsidiary Bond & Credit Co. put in nominal claims for $1 each until they work out how much they are owed, the people said, asking not to be identified as the meeting was private. Tokio Marine is facing a larger-than-expected exposure to the Greensill Capital meltdown after finding that reinsurance contracts intended to limit losses didn’t cover its unit that did the most business with Greensill, Bloomberg reported.BCC’s previous owner, Insurance Australia Group Ltd., submitted a claim for about A$20,000 to cover its legal fees for a court dispute with Greensill that was heard in Sydney on March 1, according to a different person with knowledge of the matter.The Peter Greensill Trust, a creditor which represents CEO Lex Greensill and his brothers Peter and Andrew, is seeking $60 million. Startup Earnd, which Greensill bought a controlling stake in last year, was another creditor. The administrator is considering options for that firm that may include a sale, according to people familiar with the matter.The administrators were also aware of a contingent claim from the Association of German Banks that could be in the order of about 2 billion euros ($2.4 billion), Grant Thornton said in a statement. This has not been formally verified by the administrators, according to the statement. There is a concurrent administration process running in Germany for Greensill Bank AG, a subsidiary of Greensill Capital.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
Coin Rivet
Woorton acquires €5 million of Bitcoin at national French auction
Paris-based cryptocurrency market makers, Woorton, participated in the first ever Bitcoin auction in France. The event saw the French State auction off 611 Bitcoin that had been recovered by the Agency for the Recovery of Seized and Confiscated Assets (AGRASC).
2d ago
Bloomberg
Russia Surprises With Rate Hike, Signals More to Come
(Bloomberg) -- The Bank of Russia increased interest rates for the first time since 2018 and said further hikes are likely after inflation accelerated faster than expected.The benchmark rate was raised 25 basis points to 4.5% on Friday. Just three analysts in a Bloomberg survey of 41 economists forecast the move, with the rest predicting a hold. Bloomberg reported earlier this week that the rate could be raised to 5.5% by the end of the year.The central bank considered a bigger increase on Friday, but decided that policy changes should be gradual, Governor Elvira Nabiullina, who was wearing a brooch in the shape of a hawk, said at a news briefing after the decision.“Time is of the essence,” she said. “If you postpone a rate hike, inflation may accelerate and inflation expectations won’t decrease. This will move inflation further from the target and that will require a more significant rate hike in the future.”The ruble climbed and 10-year bond yields rose to their highest level in a year.The move follows big hikes in Brazil and Turkey this week, highlighting how inflation and rising Treasury yields are becoming a problem across emerging markets. In Russia, food prices in particular have shot up, adding to a decline in living standards during the pandemic.“I think another 25 basis-point hike is coming in April or June, but April is a bit more likely,” said Tatiana Orlova, an analyst at Emerginomics in London, who correctly forecast Friday’s decision. “Then the central bank might take a pause to take stock of the impact of the hikes on the economy.”Annual inflation accelerated 5.8% as of March 15, the fastest pace in more than four years, but the central bank expects it to peak this month, according to the statement. Inflation is running above forecast and is expected to return close to the target of 4% in the first half of 2022, it said.A return to neutral policy, which would imply a rate of 5%-6%, could be reached this year, but it’s not a given, Nabiullina said.What Our Economists Say:“The central bank’s next move depends on the data, but this tightening cycle is likely to be front loaded to contain inflation. Two more hikes in April and June would provide room to maneuver in the second half of the year.”-- Scott Johnson, Bloomberg Economics. Here’s the full INSIGHTA government plan to increase spending in the first half of the year to help revive the economy from the pandemic may also propel inflation. Growth is recovering quicker than expected and will be supported by the improved global outlook, the central bank said.The threat of new U.S. sanctions has clouded the outlook for the ruble, which could add new inflationary pressures in coming months. Relations between Russia and the U.S. reached a new low this week after U.S. President Joe Biden vowed to make the Kremlin “pay a price” for election interference.Nabiullina downplayed the risk of penalties on ruble sovereign bonds, a measure being considered in Washington, saying it wouldn’t create a systemic risk because the level of outstanding debt is low. The move could cause short-term liquidity problems, she added.“The surprising rate hike not only reflects concerns about inflation, but also about the rising risk that the U.S. may impose another round of sanctions,” said Piotr Matys, a strategist at Rabobank in Moscow. “The main objective is to provide the ruble with support.”(Updates to add comments from central bank governor from third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
Bloomberg
Goldman Sells $53 Million of Bankrupt Texas Utility Claims
(Bloomberg) -- Goldman Sachs Group Inc. auctioned off around $53 million of claims it held against a bankrupt Texas power cooperative as distressed debt traders bet the government will foot the bill for the state’s energy crisis, according to people with knowledge of the matter.Goldman sold its claim on Brazos Electric Power Cooperative Inc. this week at 80 to 85 cents on the dollar, said the people, who asked not to be identified because details of the auction are private.The bank is one of Brazos’s largest unsecured creditors. It’s owed the money for interest rate swaps and other power derivatives contracts that its commodities trading unit J. Aron & Co. signed with Brazos before a winter storm in February upended the Texas power market, saddling the electricity provider with billions in liabilities it couldn’t repay.A representative for New York-based Goldman Sachs declined to comment. Waco-based Brazos didn’t immediately respond to requests for comment.Claims PricesThe price Goldman received is similar to other unsecured claims have changed hands and suggests traders are expecting the Texas government will cover at least some of Brazos’s losses, according to some market watchers.“The market is assigning an over 50% probability that there will be claims forgiveness and socialization of losses,” said Bradley Max, a director of Cherokee Acquisition, a New York firm that specializes in trading of bankruptcy claims and has bid for some of the Brazos receivables.A $30 million piece of the roughly $480 million unsecured bank revolver was sold at auction last week for around 80 cents on the dollar, the people said. Bank of America Corp. is the administrative agent on the revolver, though the identity of the seller wasn’t revealed.The fate of Brazos, which is the largest power generation and transmission cooperative in Texas, and its multibillion-dollar debt to Ercot is still the subject of political wrangling.A bill in the state legislature that would have wiped out more than $4 billion of electricity overcharges from last month’s blackouts appeared dead on Friday, after lawmakers left town without taking final action on the proposal.(Updates with Goldman declining to comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
1d ago
CoinDesk
Brazil Becomes Second Country in the Americas to Approve a Bitcoin ETF
The Brazil Securities and Exchange Commission (CVM) has approved QR Capital's bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
2d ago
Bloomberg
Quadruple Witching Moves Jump-Start Stock Market Volume
(Bloomberg) -- Equity traders who had been frustrated by recent sleepy volumes just got a big liquidity boost.Stock transactions spiked Friday amid a quarterly event colloquially known as quadruple witching, when options and futures on indexes and equities expire. More than 17 billion shares changed hands on exchanges, 20% above the three-month average, as the S&P 500 erased an earlier decline of 0.7% before closing the session with a slight loss.The event usually brings single-day volumes that rank among the highest of the year -- welcome news for investors who need to shuffle big holdings. There was a lot to shuffle. The broad rotation away from stocks that benefited from the pandemic lockdowns to ones that should thrive as the economy bounces back means that exchange-traded funds and quant traders might have been forced to dramatically switch positions.Quadruple witching arrived in the wake of tepid trading, with an average 12 billion shares changing hands in the first four days this week, the slowest since December. The light volume had reflected investor hesitation to place big bets around Wednesday’s Federal Reserve Open Market Committee’s policy announcement and also came as rising yields were wreaking havoc on risky bets, from unprofitable technology firms to newly minted stocks.Sentiment is “neurotic but net bullish, especially after such an important FOMC meeting,” said Michael Purves, chief executive officer at Tallbacken Capital Advisors. “Sometimes it takes the market a bit of time to get strong conviction one way or the other.”Investors started to reassess equity risks as 10-year Treasury yields marched above 1.7%, the highest in more than a year. While the S&P 500 reached an all-time high this month, boosted by economically-sensitive companies like banks, the benchmark has yet to break the 4,000 mark.Partly driven by a retail-driven rush for call contracts to chase winners, the size of option expiration this time was by some measure unprecedented. The notional value of single-stock options that were set to expire Friday totaled $655 billion, the largest non-January expiry and the third-largest on record, according to data compiled by Goldman Sachs Group Inc.As usual, quadruple witching coincided with a rebalancing of benchmarks such as the S&P 500 Index, another event that typically sparks trading. According to an estimate from Howard Silverblatt, senior index analyst at S&P 500, the rebalance in the index alone could force $30 billion of stock trades.While trading activity rose Friday, the impact of quadruple witching on the market’s overall direction is not easy to predict. If volume is any guide, its near-term fate is nothing more than a coin toss.During the past 25 years, stock volume during option expiration weeks tended to be 5% higher than the 50-day average, Sundial Capital Research’s Jason Goepfert found. But this week through Thursday, trading was running about 13% below the average. Similar quiet weeks ahead of option expiration have resulted in the S&P 500 rising 52% of the time in the following week, his study shows.Read more: How Many Witches Are Beguiling Stocks Today? It’s Just a TrioAnother way to examine the event is through the lens of options dealers, who typically need to hedge their positions by buying or selling underlying stocks. Their holdings are often scrutinized, since “long gamma” indicates they’re pushing against the prevailing market trend while “short gamma” points to a tendency to go with it.Heading into Friday, dealers held $4.9 billion worth of long gamma exposure for the S&P 500 to stay at 3,950, a level that could act as a “rubber-band” for the market, according to Charlie McElligott, a cross-asset strategist at Nomura Securities. With a significant amount of hedging positions trimmed after Friday, it could set the stage for the index to move in a wider price range, he said.McElligott said investors should take advantage of any pullback to add positions, especially as rising yields keep hammering the market. The economic reopening will gather pace in coming months, helping propel the S&P 500 to another level where dealers appear to have big exposure: 4,000, he added.That “feels like a ‘round number’ inevitability,” McElligott wrote in a note. “So I’ll keep pounding the table on scooping equities’ upside.”(Updates for Friday volume in second paragraph, chart)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
1d ago

Symbol	Last Price	Change	% Change
APA APA Corporation	19.48	+0.24	+1.25%
CYDY CytoDyn Inc.	2.4635	+0.1135	+4.83%
IQDNX Infinity Q Diversified Alpha Fund Institutional Class	12.83	+0.01	+0.08%

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

SHAREHOLDER ALERT: APA IQDNX CYDY: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

Recommended Stories

GameStop Earnings Are Coming. Nobody Knows What to Expect.

Wall Street Pros From Goldman to JPMorgan on New Inflation Era

Canadian Property Firm Buys Bitcoin in Hopes of Eventually Scrapping Condo Fees

Explainer: What rising bond yields mean for markets

Cathie Wood’s Ark Has a New Price Target for Tesla: $3,000

Billionaire Hedge Fund Mogul Alan Howard Is a Shareholder in CoinShares

Investors pour record money into equities even as bond yields rise - BofA

Biden just canceled $1 billion in student loan debt. Are you eligible?

SSE, Equinor Kick Off Stake Sale in Biggest Wind Farm at Sea

Bank Of America Calls Bitcoin 'Impractical,' And Crypto Community Has A Lot To Say About That

GBP/USD Price Forecast – British Pound Continues to Look Sluggish

BofA Sees Stocks on Track for $1.6 Trillion in Inflows This Year

GBP/JPY Price Forecast – British Pound Gets Hammered Against Yen

Oil Price Fundamental Daily Forecast – Buyers on Sidelines as Demand Concerns Cap Gains

SoftBank Seeks $1.2 Billion in Greensill Collapse

Woorton acquires €5 million of Bitcoin at national French auction

Russia Surprises With Rate Hike, Signals More to Come

Goldman Sells $53 Million of Bankrupt Texas Utility Claims

Brazil Becomes Second Country in the Americas to Approve a Bitcoin ETF

Quadruple Witching Moves Jump-Start Stock Market Volume