Wall Street’s Booming ETF Market Is On Brink of Record Launches

Dec 8, 2022

Observations & Insight

Trabue Bland, SVP, Futures Markets at ICE, has written a paper titled “Why financial participants matter to the commodity markets.” The chapter topics of the paper include “How derivatives work” and “Participation in the derivatives markets.” I like “Exposing speculation myths” and the last one, “Attacks on speculators during the financial crisis.” It looks like a must read.

Lead Stories

Wall Street’s Booming ETF Market Is On Brink of Record Launches
Vildana Hajric – Bloomberg
If a crushing bear market, inflation-fueled volatility and slump in inflows was meant to cool the booming US exchange-traded fund industry, issuers never got the message.
Firms have brought 422 new ETFs to the market this year as of Wednesday, five more than the number seen at the same time in 2021. That total puts 2022 on track to surpass last year’s record for debuts, even as the Federal Reserve’s battle against soaring prices stokes turmoil across asset classes.
/jlne.ws/3Y9bd3p

The Stock Market Dropped From a Key Level—Again. What That Means.
Jacob Sonenshine – Barron’s
The stock market just can’t surpass its 200-day moving average. The market outlook is hazy—and something needs to change for the better in order for it to post sustained gains.
The S&P 500 has dropped to just above the 3900 level from 4080, the peak of a recent fall rally reached in November. That peak was right around the 200-day moving average of 4050, before sellers promptly sent the index lower. The key idea is that buyers were nowhere to be found when the index reached a level consistent with a longer-term average of levels. That signifies weakening confidence in the outlook for the market.
/jlne.ws/3W5D6rB

BlackRock Warns of a Recession Unlike Any Other and a New Era of Volatility
Anil Varma – Markets Insider
A worldwide recession is just around the corner as central banks boost borrowing costs aggressively to tame inflation — and this time, it will ignite more market turbulence than ever before, according to BlackRock.
The global economy has already exited a four-decade era of stable growth and inflation to enter a period of heightened instability — and the new regime of increased unpredictability is here to stay, according to the world’s biggest asset manager.
/jlne.ws/3h7SBjY

Just 1% of Retail Investors Want to Sell Their Stocks, Survey Shows
George Glover – Markets Insider
As much as 99% of retail investors intend to hold onto their stocks next year despite the looming threat of an economic recession, according to a survey.
Finimize polled 2,000 traders in the US, Europe and Asia, asking for their outlook on the equity market next year.
/jlne.ws/3hde62K

Exchanges

Best in Biz Awards Honors OCC Corporate Communications as ‘PR Department of the Year’
OCC
OCC today announced that its Corporate Communications team was named PR Department of the Year in the 12th Annual Best in Biz Awards, an independent business awards program judged by editors and reporters from top-tier publications in North America.
OCC’s Corporate Communications team consists of five individuals who work together to develop and implement OCC’s corporate marketing and communications strategy, including external relations (brand awareness and public relations), internal relations (employee communication and engagement), social media, and creative/design.
/jlne.ws/3FzpIGH

Miami International Holdings Commemorates 10-Year Anniversary of the MIAX Options Exchange Launch
MIAX
Miami International Holdings, Inc. (MIH), owner of Miami International Securities Exchange, LLC (MIAX), MIAX PEARL, LLC (MIAX Pearl), MIAX Emerald, LLC (MIAX Emerald), Minneapolis Grain Exchange, LLC (MGEX), The Bermuda Stock Exchange (BSX), and Dorman Trading LLC announced today the celebration of the 10-year anniversary of the launch of MIAX Options with a ceremonial bell ringing at its Princeton, N.J. headquarters.
/jlne.ws/3FbsnFc

Crypto Options Exchange Deribit Registered Record Trading Volume in November
Omkar Godbole – CoinDesk
Deribit, the world’s largest crypto options exchange by volume and open interest, has been busier than ever.
The number of ether (ETH) options contracts traded rose 10% in November relative to October, reaching a record high of 8.9 million. Trading volume in bitcoin (BTC) options rose 17% to 778,000 contracts, nearing the record rally registered in January 2021, according to data sourced from Deribit.
/jlne.ws/3Y5AbRj

Strategy

20 Stock Options Trades That Provide at Least 240% Return Potential
William Edwards – Business Insider
Goldman Sachs equity strategists see the S&P 500 staying flat at around 4,000 through 2023.
So to drive positive returns, they recommend owning stocks linked to falling inflation, and stocks in defensive sectors like healthcare, consumer staples, and energy.
/jlne.ws/3iNdAZL

How the Oil Rally Turned Into a Crash
Avi Salzman – Barron’s
Just a month after traders were placing bets on $200 oil, prices are moving fast in the opposite direction. The shift has been shocking to some people who follow the markets, given the unprecedented sanctions that Europe imposed on Russian crude shipments on Dec. 5.
“December 5 was a potential End of Times moment for low oil prices,” said Robert Yawger, director of energy futures at Mizuho Securities USA. Prices were expected to “go to the moon and wipe out the global economy.”
/jlne.ws/3P91rKN

Opinion: If the stock market breaks down past this level, the drop could be big.
Lawrence G. McMillan – MarketWatch
The S&P 500 Index rallied from early October into early December.
By that time, the benchmark had reached the downtrend line that defines this bear market. (See the solid blue line on the accompanying chart, below.) That line held, and now the bulls find themselves on the defensive once again.
/jlne.ws/3FeQJh3

Miscellaneous

The 5 biggest losers in the S&P 500 this year have seen $720 billion in market value erased
Matthew Fox – Business Insider
The S&P 500 is down 17% year-to-date, with about 70% of companies in the index printing losses. And those losses are big!
Tesla alone has erased $553 billion in market value year-to-date, with the stock down just over 50%. Meanwhile, the combined year-to-date market value losses of mega-cap tech giants Apple, Alphabet, Amazon, and Microsoft have erased nearly $3 trillion in market value.
/jlne.ws/3FxWmHF

ICE to Start Rival Gas Market in London to Sidestep EU Price Cap

ICE to Start Rival Gas Market in London to Sidestep EU Price Cap

First Read Hits & Takes John Lothian & JLN Staff Thank you to all who replied to my request to help one of my Eagle Scouts who was recently laid off on the West Coast and is looking for new opportunities in the climate tech and sustainability space. You are...

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