Market After The Close, Thursday 19 December
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Fedmaggeddon x Vixpiry x Mopex x Shutdown
by Alex King, CEO, Cestrian Capital Research, Inc
Apart from the Fed spooking everyone out about rising inflation, Vix options expiration with the Vix at the lows, monthly options expiration with markets close to ATHs, oh and a new will-they-won't-they government shutdown psychodrama, it's a nice easy run into year end. Santa's sleigh requires DMV certification each year. If shutdown, no certificate, Santa's gonna have to improvise.
Today was more or less a nothingburger in equity indices. The market needs to chew through options expiry tomorrow to let the air clear a little and begin to find its feet after the cray-cray moves it made yesterday.
If you want to understand what the Fed just did and why, I suggest you read the same analysis that I do when I want to know what on earth is going on over there.
This:
Understanding Macro
If you want to understand macro, start by ignoring most everyone who writes about macro, because they mostly talk speculative nonsense. Instead, start reading Yimin Xu's work, which is excellent, arises from his career as a professional rates trader, is actionable, and real-time. Oh also you can try it for free. Here.
Short- And Medium-Term Market Analysis
Don’t forget that to open full page versions of any of the charts below you can just click on the underlined header which titles each chart - they are all hyperlinks.