The Daily Shot Brief – September 8th, 2020

Greetings,   United States: There has been a substantial increase in households that “sometimes or often” go hungry.   Many can’t cover basic expenses.   United Kingdom: The pound has been under pressure as Brexit concerns resurface.       Commodities: Industrial commodities buyer activity has accelerated in August.   Energy: The Saudis cut oil …

The Daily Shot Brief – September 4th, 2020

Greetings,   Equities: The market finally saw a healthy adjustment, as the dealers’ short gamma exposure exacerbated the selloff (the same effect that created the melt-up). The tech mega-cap shares sold off.   Social media lit up with retail traders discussing their losses. • Reddit   But no worries. Individual traders got a taste for quick gains in the options …

The Daily Shot Brief – September 3rd, 2020

Greetings,   Equities: Let’s begin with the options market where the speculative fervor is on full display. Speculative demand for call options (mostly deep out-of-the-money contracts) has been staggering (2 charts). Short-term call options are notoriously difficult to hedge, and dealers who sold them rapidly become short the market as shares rise (and the probability …

The Daily Shot Brief – September 2nd, 2020

Greetings, Administrative Updates 1. Please note that The Daily Shot, as well as the Daily Shot Brief, will not be published on Monday, September 7th. 2. Please contact Help@TheDailyShot.com for any technical or account-related issues/questions. 3. Administrative updates are published on our website here. United States: Permanent layoffs have been relatively low.   But Americans are quite concerned …

The Daily Shot Brief – September 1st, 2020

Greetings, Administrative Updates 1. Please note that The Daily Shot, as well as the Daily Shot Brief, will not be published on Monday, September 7th. 2. Please contact Help@TheDailyShot.com for any technical or account-related issues/questions. 3. Administrative updates are published on our website here. United States: Longer-term inflation expectations continue to climb. The market is increasingly convinced that …

The Daily Shot Brief – August 31st, 2020

Greetings, Administrative Updates 1. Please note that The Daily Shot, as well as the Daily Shot Brief, will not be published on Monday, September 7th. 2. Please contact Help@TheDailyShot.com for any technical or account-related issues/questions. 3. Administrative updates are published on our website here. United States: Americans are moving into lower-density communities within their metro areas. Regional mortgage …

The Daily Shot Brief – August 27th, 2020

Greetings,   United States: According to JP Morgan, credit/debit card spending hasn’t been significantly impacted by the loss of unemployment benefits. However, the situation could change if there is no additional stimulus after the White House program ($300/week) expires.   Japan: According to Barclays Research, Japan’s households “face a slide in disposable income due to …

The Daily Shot Brief – August 25th, 2020

Greetings,   Equities: This scatterplot shows the average earnings surprise for Q2 vs. the year-over-year earnings growth rate (by sector).   Rates: SOMA securities purchases over time:   Will slower growth in the Fed’s balance sheet boost the dollar?   Emerging Markets: Which bonds are most vulnerable to global inflation?   United States: Many homeowners …