A Real Correction For Once?
Brendan Conway – Barron’s
It feels like it in Thursday’s session, but it’s a long way from here to correction territory. After a drop in six of eight days for the blue-chip Dow, the index has slumped 220 points this morning, or 1.4%, to 15,122. But it entered Thursday with a scanty 1.04% August loss, suggesting investors are almost as fearful of missing potential gains as they are of a selloff.
‘Jaws’ Is Back, This Time on Wall Street
Adam Johnson – Bloomberg
Blog readers may question this penchant for drama this morning, so allow me to offer a little perspective: stocks have rallied this year without a single correction that lasted four days. This sets a new record, according to the team at Bespoke Investment research.
Wall Street Thrashed as Yields Swell
Adam Samson – Fox Business
The markets took a beating on Thursday after upbeat data caused Treasury yields to jump and traders grew concerned about corporate outlooks.
Soros’s biggest holding? A bearish call on the S&P; 500
Barbara Kollmeyer – MarketWatch
It’s 13F revelation time, and the headlines are full of news about big investor George Soros going hot for Apple and dumping on gold in the second quarter. However, there’s something else in those numbers that should make investors sit up a little.
The Order Machine Processes 10 Millionth Options Contract
Nandini Sukumar – Bloomberg
The Order Machine, a Dutch trading venue for options, said it processed its 10 millionth contract today as it takes business from NYSE Euronext (NYX)’s Liffe derivatives market.
Unreliable Guesswork in Valuing Murky Trades
Peter Eavis – Dealbook
On Wall Street, bets worth hundreds of billions of dollars are valued using a considerable amount of guesswork.
The dangers of that approach were revealed on Wednesday in the government’s criminal complaints against two former JPMorgan Chase traders.
Videocast: VIX pits caught off guard
Options Traders Pile Into Bullish Bets on Apple
Kaitlyn Kiernan – The Wall Street Journal
While the euphoria that surrounded Apple shares this time last year has faded, the rebound in the stock has options traders clamoring for bullish bets. But some in the options market say the extent of the bullishness is turning into a negative for the stock.
ANALYSIS-Muni investors could face extra risk from rising rates
Hilary Russ – Reuters
Rising interest rates may bring an unwelcome surprise for some retail investors in the $3.7 trillion U.S. municipal bond market because of a common muni bond component – the call feature – that could amplify price drops.
Derivatives to Drive Nasdaq OMX Europe Expansion, Rosendahl Says
Kati Pohjanpalo – Bloomberg
Nasdaq OMX Group Inc. is betting equity derivatives will drive profit in Europe as greater transparency draws in more investors, according to its derivatives chief in the Nordic region.
CBOE, CFE, C2 and CBSX Trading Schedule for the Labor Day Holiday
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) announced the following trading schedule for Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE), C2 Options Exchange (C2), and CBOE Stock Exchange (CBSX) in observance of the Labor Day Holiday.
– Friday, August 30: CBOE, CFE, C2 and CBSX will have normal trading hours for all products.
– Monday, September 2: CBOE, CFE, C2 and CBSX will be closed.
REGULATION & ENFORCEMENT
U.S. senator wants to grant the SEC more time to seek penalties
Sarah N. Lynch – Reuters
A U.S. Senate Democrat is developing legislation that would double from five to 10 years the amount of time that federal securities regulators have to seek penalties, in an effort to help buy them more time to investigate complex cases.
U.S. charges two ex-JPMorgan bankers over ‘London Whale’ loss
Emily Flitter – Reuters
U.S. prosecutors brought criminal charges on Wednesday against two former JPMorgan Chase & Co employees in the trading scandal that cost the bank $6.2 billion last year, but the trader nicknamed “the London Whale” because of the size of losses was not one of them.
Let Me Save You Some Time
Jared Woodard – The Street
If you know which market indicators are valuable and which ones are bunk, you can save yourself a lot of time, effort, and money by ignoring the latter. Here are some popular indicators that might be fun to watch but that lack predictive power:
Still Bullish on Small Stocks
Steven M. Sears – Barron’s
Options investors can profit as the Russell 2000 ETF continues to climb a wall of worry.