Wsj Hedge fund Manager s Bearish Bets Backfire Again

Observations & Insight

The Spread – July 9, 2021
JohnLothianNews.com

Chicago, a information destination; the SEC, Robinhood and payment for order flow; John Lothian weighs in with his take; Retail trading continues to percolate; and Cboe's Kevin Davitt explains the differences betwixt equity and alphabetize options in the "Term of the Calendar week."

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Lead Stories

Hedge funds took profits as U.S. oil price striking highest in more than six years
John Kemp – Reuters
Portfolio managers took profits on their bullish petroleum positions later on OPEC+ failed to reach agreement on increasing product and U.S. oil prices hitting their highest level since late 2014.
Hedge funds and other money managers cutting their combined position in the six about important petroleum futures and options contracts past the equivalent of 63 one thousand thousand barrels to 877 million barrels in the calendar week to July half-dozen.
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Can Robinhood Ride the Bull?
WSJ
Robinhood, the committee-free meme-stock dream store, is going public. At that place'southward talk of a bubbly $40 billion valuation. Woohoo! Plus, the visitor has announced that up to 35% of the new shares in the initial public offering are reserved for its own retail customers. Groundbreaking? I don't know. If Robinhood really is the future of Wall Street, why not take itself public and sell 100% of the new shares to retail customers? Who needs Goldman Sachs and JP Morgan ?
/on.wsj.com/3wuptoA

European stocks hit all-fourth dimension highs just economic worries remain
Sruthi Shankar and Susan Mathew – Reuters
European stocks scaled new highs on Monday on broad-based gains, merely worries near the footstep of economic recovery made defensive sectors the best bid while travel stocks slumped with the Delta variant of coronavirus condign dominant.
The pan-European STOXX 600 index rose 0.seven% and hit 461.10, extending gains from Friday later on a tumultuous week. Deutschland's DAX also briefly touched a new high of xv,806.900 before closing just below that level.
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Moving ridge of Bullish Oil Bets Drives Large Price Moves
Hardika Singh and Amrith Ramkumar – WSJ
Hedge funds and other speculative investors recently pushed bets on rising oil prices to their highest level in years, a sign that 1-sided positioning is sparking big moves in the world's busiest commodity marketplace.
The ratio of bullish bets on U.Southward. crude to bearish wagers surged to 23-to-one during the week of June 15, the highest level since the summer of 2018 and nearly triple the figure from five weeks before, Commodity Futures Trading Committee data show. While the ratio has edged lower in more contempo weeks, it has stayed at levels considered elevated past many analysts and well higher up 6-to-1, where information technology started the year.
/on.wsj.com/3yQVokq

Crypto trading volume fell 43% in June following China'due south crackdown on the sector
Ethan Wu – Markets Insider
Lower prices and volatility sent cryptocurrency trading volumes sliding 42.vii% in June as Cathay booted miners out of the state and cracked down on crypto employ broadly, according to a study from CryptoCompare.
The analytics firm constitute that trading volumes plunged to $2.7 trillion in a broad-based slowdown that striking all major crypto exchanges. The highest daily volume in June was down 42.three% from the equivalent peak in May.
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Exchanges

CME Group International Average Daily Volume Reached 5.1 1000000 Contracts in Q2 2021, Up half dozen% from Q2 2020
CME Group
CME Group, the world's leading and virtually diverse derivatives marketplace, today appear that its international average daily book (ADV) reached 5.1 million contracts in Q2 2021, up vi% year on year.
/chip.ly/3i3gYvh

SGX reports market statistics for June 2021
SGX
Derivatives traded book rises on increased risk-management demand; Secondary fundraising climbs to highest corporeality in a yr; Singapore Exchange (SGX) today released its market statistics for June 2021. Derivatives full traded volume on SGX rose 5% month-on-month (m-o-m) to 18.ix million contracts, the highest in three months.
SGX's suite of pan-Asia benchmark equity derivatives climbed 4% m-o-m in June to xiii.five million contracts. This included a fourteen% m-o-m increase in SGX FTSE Mainland china A50 Index Futures to 7.9 million contracts and a 7% m-o-chiliad gain in SGX Nikkei 225 Alphabetize Futures to 1.2 1000000 contracts.
/bit.ly/3B3eupN

Moves

OCC CSO Marker Morrison Named equally Top 100 CISO in 2021
OCC
OCC'due south Chief Security Officer, Marking Morrison, was recently named as one of the Height 100 CISOs (C100) in the U.s. past Security Current'due south CISOs Connect™. The C100 recognizes leaders in cybersecurity across the private sector, government, and academia for their contributions to the industry, excellence in organizational protection, and back up of the side by side generation of cyber professionals.
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Quantitative Trader (Task Posting)
Chicago Trading Company
We are seeking an experienced Quantitative Trader to join i of our highly profitable options market place-making desks. Our trading teams require individuals that tin ally trading intuition, quantitative research and technical acumen in order to capitalize on short and medium-term opportunities in volatility marketplace making. This role offers an outstanding opportunity in leadership, strategy development and risk management in a squad trading environs where collaboration and continuous comeback are greatly rewarded.
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Strategy

Stay bullish and purchase dips in the S&P 500 because it will keep grinding college, says this strategist
Jack Denton – MarketWatch
The Due south&P 500 pushed college on Monday, continuing from fresh records reached on Friday later on a bumpy week of trading on Wall Street.
That grind higher should continue, with the blueish-scrap index heading for more highs ahead, according to financial newsletter The Kobeissi Letter in our phone call of the day.
/on.mktw.net/3hzmdUJ

Chinese and European Central Banks Take Cheered Up The Markets
Investing.com
Final week was quite unsettling for financial markets, but investor optimism is high at the beginning of the new week. United states of america stocks airtight mostly higher terminal Friday, and Asian indices rallied for relief in Monday's session.
The reasons for investor optimism are real: Major global central banks still maintain a soft stance and are prepared to step up support if the upside momentum wears off. For instance, final week, the Chinese fundamental bank lowered its reserve requirement charge per unit, a policy easing to support an economic system that has started to show signs of slowing growth.
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Events

U.Southward. Revenue enhancement Considerations for Listed Options Registration
onlinexperiences.com
You're invited to a live 70-minute webinar hosted by the Cboe Options Constitute to explore U.S. Tax considerations for Listed Options, including a discussion of the outlook for possible legislative and regulatory initiatives that may bear upon the tax of options moving frontward. Join Matthew Stevens, David Kirk, Joe DeSipio, Roy Haya, and Matt Moran.
Standing instruction (CE) credit bachelor – This webcast is accepted for one hour of CFP , CIPM , RMA , CIMC , CIMA , or CPWA CE Credit for webcast attendees. CFA Constitute members may cocky-document their continuing professional person evolution activities in their online CE tracker.
Air Date: Midweek, July 14, 2021
Start Time:12:00 pm ET
Duration: lxx minute Webinar and 15 infinitesimal Q&A
/bit.ly/3dmg1vm

Virtual Derivatives and Futures Police force Committee Mid-Year Plan [CC]
American Bar Association
Join us for the Virtual Derivatives and Futures Law Committee Mid-Yr Program
Keynote Presentation – Wednesday, July 21 10:00 a.m. – 10:xxx a.m. ET
Fireside Chat on Crypto and Fintech – Wednesday, July 21 10:xxx a.chiliad. – 11:00 a.m. ET
/bit.ly/3k91FEj

Miscellaneous

Wall Street Dealmakers Step Into Limelight With Windfall Nearing
Sonali Basak – Bloomberg
It's trading places all over once more on Wall Street — this time, on a multi-billion dollar scale.
Trading desks that final year raked in their biggest haul in almost a decade are expected to report a sharp drop in 2d-quarter acquirement this week equally life returns to normal and pandemic-induced market volatility fades. Meanwhile, on the ascent: investment bankers who are scrambling to go on up with a tape deluge of deals, fueled by rebounding corporate confidence and gratuitous-spending individual equity firms.
/bloom.bg/3hzquaL

Historic tendency reverses as ETF fees head higher
Steve Johnson – Financial Times
Management charges for exchange traded funds accept stopped falling, and in some cases started to rise for the start time, potentially signalling an end to a multi-decade trend of always-lower fees.
A ferocious toll state of war acquired asset-weighted annual fees for US-listed ETFs to tumble 43 per cent to nineteen ground points between 2012 and 2020, co-ordinate to calculations past JPMorgan.
/on.ft.com/3wuKiQB

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Source: https://johnlothiannews.com/hedge-funds-took-profits-as-u-s-oil-price-hit-highest-in-more-than-six-years/

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