#$CBOE

[dragonflycap]

5 Trade Ideas for Monday: CBOE, Freeport-McMoRan, JinkoSolar, Teck Resources and Voya

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Cboe Global Markets, $CBOE, comes into the week at short term resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

Freeport-McMoRan, $FCX, comes into the week approaching resistance. It has a RSI at the midline with the MACD crossed up. Look for a push over resistance to participate…

JinkoSolar, $JKS, comes into the week pushing up towards resistance. The RSI is rising to the midline with the MACD crossed up. Look for a push over resistance to participate…

Teck Resources, $TECK, comes into the week approaching resistance. It has a RSI rising over the midline with the MACD about to cross to positive. Look for a break of resistance to participate…

Voya Financial, $VOYA, comes into the week at resistance. The RSI is rising with the MACD positive. Look for a push over resistance to participate…

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of February in the books, saw equity markets show resilience with a rebound from an ugly start anticipating tariffs.

Elsewhere look for Gold to continue its assault on $3000/oz while Crude Oil falls in consolidation in a broad range. The US Dollar Index looks to pause in the drift to the upside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue to consolidate while Emerging Markets continue a short term move lower.

The Volatility Index looks to remain low and stable, making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe consolidation ranges continue to hold the QQQ and SPY just under all-time highs with the IWM consolidating at resistance. Use this information as you prepare for the coming week and trad’em well.

[apieinvestavimapaprastai]

NASDAQ krito, DeepSeek sukėlė AI karus: Kas laukia rinkų ateityje? 5 Savaitės Apžvalga

Atskleiskite praėjusios savaitės kapitalo rinkų svyravimus: NASDAQ kritimas, DeepSeek AI pranašumas, JAV tarifų gr��smės, ECB normų mažinimas. #DeepSeek #NASDAQkritimas #DeepSeekAI #ECB #FED #BoE #BoJ #palukanunorma #žaliavųrinkos #Investicijos #Kapitalas

Po DeepSeek paleidimo, NASDAQ indekso akcijos, ypač susijusios su IT ir AI, giliai krito. Pats DeepSeek į tai suregavo taip, “…dėl rinkos kritimo – jei aš būčiau jo priežastis, tai tikriausiai būčiau pirmasis AI, kuriam pavyko sukelti tokį efektą! Bet kol kas tai tik žaismingas spekuliacijų objektas.” Bet ne čia esmė! Prasidėjo Pasauliniai Dirbtinio Intelekto karai (WAIW).  Continue reading…

[youthchronical]

It may be a good time for investors to look at less risky ways to stay in the stock market

As President Trump’s “not going to bend at all” approach to tariffs raises recession risk and helped to send the market into a correction last week, investors may want to consider strategies that focus more on the downside — ways to stay invested but stay protected during major stock downswings. Alternative exchange-traded funds are an option, and they have been growing in popularity in recent…

[chicagostarmedia1]

CBOE announces spot Ethereum ETF launch

Breaking news from the financial world—CBOE has just announced plans for a spot Ethereum ETF. This move may turn out to be the game-changing moment for Ethereum enthusiasts and investors alike, changing the face of crypto investing forever.

Now, introducing a spot Ether ETF could pose both opportunities and challenges in the market, which shall arguably affect everything from trading dynamics to their regulation.

Want the full scoop on the announcement, including what it could mean for the Ethereum ecosystem and investors? Our extended coverage drills deep into the particulars of the ETF, its expected benefits, and what you should know to stay ahead in this fast-moving crypto space.

Don't miss this important information—click to get the whole story and learn more about this breakthrough in finance!

[cryptosnewss]

Cboe Confirms July 23 Launch for Spot Ethereum ETFs

Optimism surrounding the approval of spot Ethereum ETFs by the United States Securities and Exchange Commission (SEC) has been high, and the recent announcement from Cboe has solidified these expectations. The confirmation from Cboe indicates that spot Ethereum ETF trading is set to commence on July 23. Excitement Builds for Spot Ethereum ETF Trading Nate Geraci, President of the ETF Store, noted…

[ennovance]

Wow! CBOE 1-month Implied Correlation Index has fallen to a new all-time low

#riskarb #investor #ennovance

[fmarkets]

Investment Services Company Sees Revenue Surge in Q4 2023 https://csimarket.com/stocks/news.php?code=CBOE&date=2024-02-16220300&utm_source=dlvr.it&utm_medium=tumblr

[kc22invesmentsblog]

Understanding Stock Market Volatility: A Closer Look at the CBOE Volatility Index (VIX)

Written by Delvin The stock market is a dynamic environment, subject to periods of both stability and volatility. Investors and traders alike often monitor the ebb and flow of the market’s volatility, seeking to understand and anticipate its impact on their investments. Central to this quest is the CBOE Volatility Index (VIX), commonly known as the “fear gauge,” a measure of the market’s…

[earningselite]

Amidst The Carnage, An Important Ratio Refuses To Get Even More Bearish

Feeling bearish? Check this ratio out as we curl into curl into October... #sp500 #spy #bullmarket #bearmarket #newsletter #trading #earnings $spy $qqq $ndx #cboe #puttocall $vti

S&P 500 CONTINUES TO DISPLAY WEAKNESS, BUT BENEATH THE SURFACE BULLISH INDICATIONS ARE EMERGING At the release of the September newsletter we cautioned readers that September was likely to be a month of weakness and the focus should be on capital preservation. So far, the call has been spot on as the month will be closing down over 5% from it’s September open. But there’s hope for October. Many…

[trendynewsbro]

Cboe Digital Bags CFTC Approval to Trade Bitcoin and Ether Futures

The CFTC has officially given Cboe Digital the approval it needs to offer margined futures contracts trading to clients. Cboe Global Markets’ digital asset exchange has received approval to allow users to trade crypto futures contracts. Customers of the Cboe Digital platform will now trade Ether (ETH) and Bitcoin (BTC) futures contracts later this year following the CFTC’s approval for an…

[dragonflycap]

5 Trade Ideas for Monday: Cboe, Salesforce, Edwards Lifesciences, Honeywell and Intercontinental Exchange

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Cboe Global Markets, Ticker: $CBOE

Cboe Global Markets, $CBOE, comes into the week at resistance. It has a RSI rising at the midline with the MACD crossed up. Look for a push over resistance to participate…..

Salesforce, Ticker: $CRM

Salesforce, $CRM, comes into the week at resistance. It has a RSI rising with the MACD crossed up. Look for a push over resistance to participate…..

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…..

Honeywell, Ticker: $HON

Honeywell, $HON, comes into the week after breaking yearlong resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…..

Intercontinental Exchange, Ticker: $ICE

Intercontinental Exchange, $ICE, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…..

Start of Summer Annual Sale! Hi all the Start of Summer Annual Sale is entering its last week at Dragonfly Capital. Get an annual subscription for 38.2% off or pay quarterly for 15% off. Both auto-renew at that discounted rate until you decide to leave.

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the June quadruple witching in the books in the books, saw equity markets a bit gassed after a good start.

Elsewhere look for Gold to continue its consolidation in the uptrend while Crude Oil moves higher in consolidation. The US Dollar Index continues the short term move to the upside while US Treasuries continue their short term move higher in the secular downtrend. The Shanghai Composite looks to continue the short term trend lower while Emerging Markets look to be on the verge of breaking consolidation to the upside.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. The charts of the SPY and QQQ look strong, especially on the longer timeframe, but with possible reversal or digestion candles this week. On the shorter timeframe both the QQQ and SPY could us a reset on momentum measures as both are extended and pullbacks are helping there. The IWM continued to go nowhere moving mainly sideways in the upper part of the 2½ year consolidation. Use this information as you prepare for the coming week and trad’em well.

[misfitwashere]

April 7, 2025 

HEATHER COX RICHARDSON

APR 8

READ IN APP

Major indexes on the stock market began down more than 3% today when, as Allison Morrow of CNN reported, a rumor that Trump was considering delaying his tariffs by three months sent stocks surging upward by almost 8%. The rumor was unfounded—it appeared to begin from a small account on X—but it indicated how desperate traders are to see an end to President Donald J. Trump’s trade war.

As soon as the rumor was discredited, the market began to fall again, although Treasury Secretary Scott Bessent’s announcement that he is opening trade negotiations with Japan and looking forward to talks with other countries appeared to reassure some traders that Trump's tariffs will not last. The wild swings made the day one of the most volatile in stock market history. It ended with the Dow Jones Industrial Average down by 349 points and the S&P 500 and the Nasdaq Composite staying relatively flat. Futures for tomorrow are up slightly.

Foreign markets fared badly today, suggesting that the reality of Trump’s tariffs is beginning to sink in. Sam Goldfarb of the Wall Street Journal notes that Hong Kong’s Hang Seng took its biggest dive since the 1997 Asian financial crisis, losing 13%, and that other markets also fell today.

Goldfarb reports that in the U.S., traders are deeply worried about losses but also anxious about missing a rebound if the administration changes its policies. Hence the extreme volatility of the market. Generally, values over 30 are considered indicators of increased risk and uncertainty in the Chicago Board Options Exchange (CBOE) Volatility Index, the so-called fear gauge. Today, it spiked to 60.

Business leaders are speaking out publicly against Trump’s tariffs. Today, Ken Langone, the co-founder of Home Depot and a major Republican donor, told the Financial Times: “I don’t understand the goddamn formula.”

Senate Republicans are also starting to push back. Seven Republican senators have now signed onto a bill that would limit Trump’s ability to impose tariffs. The power to levy tariffs belongs to Congress, but Congress has permitted a president to adjust tariffs on an emergency basis. Trump declared an emergency, and it is on that ground that he has upended more than 90 years of global economic policy.

Trump has threatened to veto any such legislation, but he will not need to if Senate majority leader John Thune (R-SD) and House speaker Mike Johnson (R-LA) refuse to bring the measure to a vote. Jordain Carney and Meredith Lee Hill of Politico report that while Republicans express concern about the tariffs in private, leaders will stand with the president because they must have the votes of MAGA lawmakers to pass any of their legislative agenda through Congress, and to get that they will need Trump’s support. Others are worried about incurring Trump’s wrath and, with it, a primary challenger.

“People are skittish. They’re all worried about it,” Senator Rand Paul (R-KY) told Carney and Hill. “But they are putting on a stiff upper lip to act as though nothing is happening and hoping it goes away.”

But so far, it does not look as if it’s going to go away. Today the European Commission has announced 25% countertariffs in retaliation for Trump’s tariffs.

Trump’s response to the crisis has been to double down on his tariff plan. This morning he wrote on his social media network that he will impose additional 50% tariffs on China effective on Wednesday unless it drops the retaliatory tariffs it has placed on U.S. products. Rather than backing down, China said it would “fight to the end.”

Today, in a press conference convened in the Oval Office, Trump explained his thinking behind why he has begun a global tariff war. "You know, our country was the strongest, believe it or not, from 1870 to 1913. You know why? It was all tariff based. We had no income tax,” he said. “Then in 1913, some genius came up with the idea of let’s charge the people of our country, not foreign countries that are ripping off our country, and the country was never, relatively, was never that kind of wealth. We had so much wealth we didn’t know what to do with our money. We had meetings, we had committees, and these committees worked tirelessly to study one subject: we have so much money, what are going to do with it, who are we going to give it to? And I hope we’re going to be in that position again.”

Aside from this complete misreading of American history—Civil War income taxes lasted until 1875, for example, tariffs are paid by consumers, the Panics of 1873 and 1893 devastated the economy, few Americans at the time thought the Gilded Age was a golden age, and I have no clue what he’s referring to with the talk about committees—Trump’s larger motivation is clear: he wants to get rid of income taxes.

Congress passed the 1913 Revenue Act imposing income taxes to shift the cost of supporting the government from ordinary Americans, especially the women who by then made up a significant portion of household consumers, to men of wealth. Tariffs were regressive because they fell disproportionately on working-class Americans through their everyday purchases. Income taxes spread costs more evenly, according to a man’s ability to pay. The switch from tariffs to income taxes helped to break the power of the so-called robber barons, the powerful industrialists who controlled the U.S. economy and government in the late nineteenth century.

To get rid of income taxes, Trump and his Republicans have backed the decimation of the government services that support ordinary Americans.

Today, in the Oval Office press conference, Trump and Defense Secretary Pete Hegseth suggested where they intend to put government money, promising a defense budget of $1 trillion, a significant jump from the current $892 defense budget. “[W]e have to be strong because you’ve got a lot of bad forces out there now,” Trump said.

Allison McCann, Alexandra Berzon, and Hamed Aleaziz of the New York Times reported today that the administration also intends to spend as much as $45 billion over the next two years on new detention facilities for immigrants. In the last fiscal year, the total amount of federal money allocated to the Immigration and Customs Enforcement was about $3.4 billion. The new facilities will be in private hands and will operate with lower standards and less oversight than current detention facilities.

—

[dreaminginthedeepsouth]

Bill Bramhall

* * * *

LETTERS FROM AN AMERICAN

April 7, 2025

Heather Cox Richardson

Apr 08, 2025

Major indexes on the stock market began down more than 3% today when, as Allison Morrow of CNN reported, a rumor that Trump was considering delaying his tariffs by three months sent stocks surging upward by almost 8%. The rumor was unfounded—it appeared to begin from a small account on X—but it indicated how desperate traders are to see an end to President Donald J. Trump’s trade war.

As soon as the rumor was discredited, the market began to fall again, although Treasury Secretary Scott Bessent’s announcement that he is opening trade negotiations with Japan and looking forward to talks with other countries appeared to reassure some traders that Trump's tariffs will not last. The wild swings made the day one of the most volatile in stock market history. It ended with the Dow Jones Industrial Average down by 349 points and the S&P 500 and the Nasdaq Composite staying relatively flat. Futures for tomorrow are up slightly.

Foreign markets fared badly today, suggesting that the reality of Trump’s tariffs is beginning to sink in. Sam Goldfarb of the Wall Street Journal notes that Hong Kong’s Hang Seng took its biggest dive since the 1997 Asian financial crisis, losing 13%, and that other markets also fell today.

Goldfarb reports that in the U.S., traders are deeply worried about losses but also anxious about missing a rebound if the administration changes its policies. Hence the extreme volatility of the market. Generally, values over 30 are considered indicators of increased risk and uncertainty in the Chicago Board Options Exchange (CBOE) Volatility Index, the so-called fear gauge. Today, it spiked to 60.

Business leaders are speaking out publicly against Trump’s tariffs. Today, Ken Langone, the co-founder of Home Depot and a major Republican donor, told the Financial Times: “I don’t understand the goddamn formula.”

Senate Republicans are also starting to push back. Seven Republican senators have now signed onto a bill that would limit Trump’s ability to impose tariffs. The power to levy tariffs belongs to Congress, but Congress has permitted a president to adjust tariffs on an emergency basis. Trump declared an emergency, and it is on that ground that he has upended more than 90 years of global economic policy.

Trump has threatened to veto any such legislation, but he will not need to if Senate majority leader John Thune (R-SD) and House speaker Mike Johnson (R-LA) refuse to bring the measure to a vote. Jordain Carney and Meredith Lee Hill of Politico report that while Republicans express concern about the tariffs in private, leaders will stand with the president because they must have the votes of MAGA lawmakers to pass any of their legislative agenda through Congress, and to get that they will need Trump’s support. Others are worried about incurring Trump’s wrath and, with it, a primary challenger.

“People are skittish. They’re all worried about it,” Senator Rand Paul (R-KY) told Carney and Hill. “But they are putting on a stiff upper lip to act as though nothing is happening and hoping it goes away.”

But so far, it does not look as if it’s going to go away. Today the European Commission has announced 25% countertariffs in retaliation for Trump’s tariffs.

Trump’s response to the crisis has been to double down on his tariff plan. This morning he wrote on his social media network that he will impose additional 50% tariffs on China effective on Wednesday unless it drops the retaliatory tariffs it has placed on U.S. products. Rather than backing down, China said it would “fight to the end.”

Today, in a press conference convened in the Oval Office, Trump explained his thinking behind why he has begun a global tariff war. "You know, our country was the strongest, believe it or not, from 1870 to 1913. You know why? It was all tariff based. We had no income tax,” he said. “Then in 1913, some genius came up with the idea of let’s charge the people of our country, not foreign countries that are ripping off our country, and the country was never, relatively, was never that kind of wealth. We had so much wealth we didn’t know what to do with our money. We had meetings, we had committees, and these committees worked tirelessly to study one subject: we have so much money, what are going to do with it, who are we going to give it to? And I hope we’re going to be in that position again.”

Aside from this complete misreading of American history—Civil War income taxes lasted until 1875, for example, tariffs are paid by consumers, the Panics of 1873 and 1893 devastated the economy, few Americans at the time thought the Gilded Age was a golden age, and I have no clue what he’s referring to with the talk about committees—Trump’s larger motivation is clear: he wants to get rid of income taxes.

Congress passed the 1913 Revenue Act imposing income taxes to shift the cost of supporting the government from ordinary Americans, especially the women who by then made up a significant portion of household consumers, to men of wealth. Tariffs were regressive because they fell disproportionately on working-class Americans through their everyday purchases. Income taxes spread costs more evenly, according to a man’s ability to pay. The switch from tariffs to income taxes helped to break the power of the so-called robber barons, the powerful industrialists who controlled the U.S. economy and government in the late nineteenth century.

To get rid of income taxes, Trump and his Republicans have backed the decimation of the government services that support ordinary Americans.

Today, in the Oval Office press conference, Trump and Defense Secretary Pete Hegseth suggested where they intend to put government money, promising a defense budget of $1 trillion, a significant jump from the current $892 defense budget. “[W]e have to be strong because you’ve got a lot of bad forces out there now,” Trump said.

Allison McCann, Alexandra Berzon, and Hamed Aleaziz of the New York Times reported today that the administration also intends to spend as much as $45 billion over the next two years on new detention facilities for immigrants. In the last fiscal year, the total amount of federal money allocated to the Immigration and Customs Enforcement was about $3.4 billion. The new facilities will be in private hands and will operate with lower standards and less oversight than current detention facilities.

LETTERS FROM AN AMERICAN

HEATHER COX RICHARDSON

[posttexasstressdisorder]

CNN 3/29/2025

BusinessInvesting• 5 min read

Dow closes more than 700 points lower and the S&P 500 is on track for its worst quarter since 2022

By John Towfighi, CNN

Updated: 4:04 PM EDT, Fri March 28, 2025

Source: CNN

US stocks tumbled Friday and a broad selloff gripped Wall Street as investors digested slightly stubborn inflation data and weakening consumer sentiment while wrestling with continued tariff anxiety.

The Dow tumbled and closed lower by 716 points, or 1.7%. The broader S&P 500 fell 1.97% and the Nasdaq Composite slid 2.7%. The slide on Friday put all three major indexes in the red for this week.

The S&P 500 is down more than 5% this year. The benchmark index is on track for its first losing quarter since September 2023 and its worst quarter since September 2022.

US stocks opened the day lower and began to slide as data from the Commerce Department showed inflation in February remained slightly sticky.

The Personal Consumption Expenditures index rose 2.5% year-over-year in February, unchanged from January and matching expectations. Yet the core PCE index, which strips out volatile categories like food and energy, ticked up to 2.8% year-over-year from 2.7% in January. That hotter-than-expected rise signals that inflation, while broadly cooling, remains above the Fed’s target of 2%.

Meanwhile, consumer sentiment tanked 12% this month, according to the University of Michigan’s latest survey released Friday.

The selloff gradually turned into a rout as investors dumped stocks in industries including technology, autos and airlines. Google (GOOG) slid 4.9%, Stellantis (STLA) slid 4% and Delta Air Lines (DAL) slid 5%.

Lululemon (LULU) stock tumbled 14% on Friday after the company flagged concerns about the outlook for consumer spending on a call with investors.

“We also believe the dynamic macro environment has contributed to a more cautious consumer,” said Calvin McDonald, chief executive at Lululemon.

The selloff in major names wasn’t the only concern for investors. CoreWeave (CRWV), an AI venture backed by chip giant Nvidia (NVDA), had a disappointing debut on the Nasdaq Friday, offering a bleak outlook for both the prospects of a continued AI boom and the market for initial public offerings.

CoreWeave had listed its IPO at $40, which was below its target range of $47 to $55, according to the Wall Street Journal. However, the stock began trading on Friday at $39, below that IPO price.

The poor debut is a sign of cooling enthusiasm for AI as investors continue to debate whether the money being poured into the industry is worth it. It also offers a meager outlook for IPOs this year as markets struggle to look past headwinds from tariffs.

Tariff anxiety continues to roil markets

President Donald Trump’s tariff proposals have also clouded investor sentiment and stoked uncertainty on Wall Street.

Investors continued to grapple with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.

Investors sold off stocks amid renewed anxiety about the impact of auto tariffs on the economy. Tariffs are a tax on imported goods, and economists expect Trump’s sweeping tariff proposals will cause an increase in consumer prices and drag on economic growth.

“It’s natural for people to expect higher prices because we haven’t seen a trade war like this since McKinley,” Art Hogan, chief market strategist at B. Riley Wealth Management, told CNN’s Matt Egan.

The yield on the 10-year Treasury note fell to 4.26% as investors snapped up government bonds, highlighting a risk-averse sentiment amid tariff uncertainty.

Wall Street’s fear gauge, the Cboe Volatility Index, or VIX, surged 16%. CNN’s Fear and Greed Index ticked into “extreme fear” territory, highlighting renewed anxiety among investors.

The tariffs on autos are an escalation in a trade war with the US’ biggest trading partners, threatening to roil global markets and disrupt a deeply intertwined supply chain across North America.

“While the economy appears solid, business executives are adopting a cautious stance on new investments, largely due to the Trump administration’s aggressive and unpredictable tariff policy,” said Matt Stephani, president of Cavanal Hill Investment Management, in an email.

Trump’s decision to announce the tariffs on autos ahead of the April 2 deadline when reciprocal tariffs are set to be revealed — a date dubbed “Liberation Day” by the Trump administration — has caused unease in markets. The early announcement highlights Trump’s commitment to tariffs, testing some investors’ initial hope that they might only be a negotiating tactic.

“We think the proposed tariffs as announced would deliver a big hit to the auto industry, stoking higher costs, higher prices and a sharp decline in US sales,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Thursday.

“[The] question is what these very aggressive automotive tariffs signal for next week’s announcement on both reciprocal and ex-auto sector tariffs,” Marcelli added.

Wall Street’s outlook sours

Wall Street’s expectations for US stocks this year are being revised down amid continued announcements about tariffs.

Analysts at UBS on Friday trimmed their year-end target for the S&P 500 to 6,400 from 6,600.

Analysts at Barclays this week lowered their year-end target for the S&P 500 to 5,900 from 6,600. Goldman Sachs earlier this month lowered its year-end target to 6,200 from 6,500.

Ed Yardeni, president of investment advisory Yardeni Research, recently lowered his year-end target to 6,400 from 7,000.

Meanwhile, the most actively traded gold futures contract in New York on Friday surged above a record high $3,100. Gold is considered a safe haven amid economic turmoil and a hedge against potential inflation.

Goldman Sachs this week revised its year-end target for gold prices to $3,300, up from $3,100, underscoring how the yellow metal’s rise this year is expected to last amid economic and geopolitical uncertainty.

See Full Web Article

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[jeffhirsch]

Market Not Out of October Woods Yet

Aside from weakness earlier in the month, this October has been rather sanguine. S&P 500 and DJIA have recorded new all-time highs and extended a weekly advancing streak to six in a row. But throughout the month the CBOE VIX index has remained stubbornly elevated around 20 and the 10-year Treasury bond yield has risen back above 4.10% while gold is also trading at new all-time highs.

Although the market did close mixed today, DJIA, S&P 500, Russell 1000 and 2000 were down while NASDAQ recorded a modest advance, today’s trading seems like a reminder that it is still October, and more volatility is not out of the question. At least until after the dust has settled on the presidential election.

Looking at October’s Election Year seasonal patterns compared to 2024 above, this October’s mid-month strength stands out as being well above average while today’s weakness aligns with the beginning of a typical, seasonal pullback in the second half of the month. Market weakness could last through the rest of this month before bouncing back during the final week of October.

[bangla24]

"Navigating Financial Markets: A Beginner's Guide to Investment Success"

Financial markets refer broadly to any marketplace where securities trading occurs, including the stock market, bond market, forex market, and derivatives market. Financial markets are vital to the smooth operation of capitalist economies.

What Are Financial Markets?

Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Financial markets facilitate the interaction between those who need capital with those who have capital to invest.

Types of Financial Markets

There are several different types of markets. Each one focuses on the types and classes of instruments available on it.The following are different types of financial markets:

Stock Market.

Bond market.

Foreign Exchange Markets.

Commodity markets.

Derivative Market.

Futures Market.

Over-the-counter (OTC) Market.

Stock Market

Perhaps the most ubiquitous of financial markets are stock markets. These are venues where companies list their shares, which are bought and sold by traders and investors. Stock markets, or equities markets, are used by companies to raise capital and by investors to search for returns. Most stock trading is done via regulated exchanges, which plays an important economic role because it is another way for money to flow through the economy.

Bond market

Bonds are issued by corporations as well as by municipalities, states, and sovereign governments to finance projects and operations.For example, the bond market sells securities such as notes and bills issued by the United States Treasury. The bond market is also called the debt, credit, or fixed-income market.

Foreign Exchange Markets.

The Foreign Exchange Market (commonly known as the Forex Market or FX Market) is a global decentralized marketplace where currencies are traded. It is the largest financial market in the world, with a daily trading volume exceeding $7 trillion as of recent estimates. The Forex market operates 24 hours a day, five days a week, enabling participants from different time zones to engage in trading activities continuously.

Commodity Markets

Commodities markets are venues where producers and consumers meet to exchange physical commodities such as agricultural products (e.g., corn, livestock, soybeans), energy products (oil, gas, carbon credits), precious metals (gold, silver,platinum).

These are known as spot commodity markets, where physical goods are exchanged for money.However, the bulk of trading in these commodities takes place on derivatives markets that utilize spot commodities as the underlying assets.

Derivative Market

Derivatives are financial instruments whose value is derived from an underlying asset or a group of assets. These assets range from stocks, bonds, commodities, currencies, interest rates, or market indices. The derivatives market is a financial marketplace where derivative contracts are bought and sold.

A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index).Rather than trading stocks directly, a derivatives market trades in futures and options contracts and other advanced financial products that derive their value from underlying instruments like bonds, commodities, currencies, interest rates, market indexes, and stocks.

Futures Market

Futures markets are where futures contracts are listed and traded. Unlike forwards, which trade OTC, futures markets utilize standardized contract specifications, are well-regulated, and use clearinghouses to settle and confirm trades.

Options markets, such as the Chicago Board Options Exchange (CBOE), similarly list and regulate options contracts. Both futures and options exchanges may list contracts on various asset classes, such as equities, fixed-income securities, commodities, and so on.

OTC Market

An over- the- counter (OTC) market is a decentralized market—meaning it does not have physical locations, and trading is conducted electronically—in which market participants trade securities directly (meaning without a broker).While OTC markets may handle trading in certain stocks (e.g., smaller or riskier companies that do not meet the listing criteria of exchanges), most stock trading is done via exchanges.

Certain derivatives markets, however, are exclusively OTC, making up an essential segment of the financial markets. Broadly speaking, OTC markets and the transactions that occur in them are far less regulated, less liquid, and more opaque.

Examples of Financial Markets

The above sections make clear that the "financial markets" are broad in scope and scale. To give two more concrete examples, we will consider the role of stock markets in bringing a company to IPO and the role of the OTC derivatives market in the 2008-09 financial crisis.

How Do Financial Markets Work?

Despite covering many different asset classes and having various structures and regulations, all financial markets work essentially by bringing together buyers and sellers in some asset or contract and allowing them to trade with one another. This is often done through an auction or price - discovery mechanism.

What Are the Main Functions of Financial Markets?

Financial markets exist for several reasons, but the most fundamental function is to allow for the efficient allocation of capital and assets in a financial economy. By allowing a free market for the flow of capital, financial obligations, and money, the financial markets make the global economy run more smoothly while allowing investors to participate in capital gains over time.

The Bottom Line

Financial markets provide liquidity, capital, and participation that are essential for economic growth and stability. Without financial markets, capital could not be allocated efficiently, and economic activity such as commerce and trade, investments, and growth opportunities would be greatly diminished.

Many players make markets an essential part of the economy—firms use stock and bond markets to raise capital from investors. Speculators look to various asset classes to make directional bets on future prices.

At the same time, hedgers use derivatives markets to mitigate various risks, and arbitrageurs seek to take advantage of mispricings or anomalies observed across various markets. Brokers often act as mediators that bring buyers and sellers together, earning a commission or fee for their services.

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Steps to Begin Investing in Financial Markets

Educate Yourself:

Learn the basics of financial instruments and how markets operate. Books, online courses, and tutorials are excellent resources.

Set Clear Goals:

Define your investment objectives, whether it’s saving for retirement, purchasing a home, or building wealth.

Determine Your Risk Tolerance:

Assess how much risk you’re comfortable taking. Younger investors might take more risks, while those nearing retirement may prefer safer investments.

Choose the Right Market:

Decide whether to focus on stocks, bonds, forex, or a mix, depending on your goals.

Open a Trading Account:

Select a reputable broker or trading platform that aligns with your investment preferences and provides user-friendly tools.

Start Small:

Begin with modest investments to gain experience and confidence.

Monitor and Adjust:

Keep track of your portfolio’s performance and make adjustments as needed to stay on track with your goals.

Common Mistakes to Avoid

Lack of Research:

Investing without understanding the market or the asset can lead to losses.

Overtrading:

Frequent buying and selling can erode returns due to fees and poor timing.

Ignoring Risk Management:

Always set stop-loss orders and consider hedging strategies to limit potential losses.

Chasing Trends:

Avoid following market hype without assessing its long-term viability.

Neglecting Diversification:

Overconcentration in a single asset or sector can magnify risks.

Conclusion

Financial markets are the backbone of the global economy, providing a platform for investment, risk management, and wealth creation. Understanding their structure and dynamics is essential for anyone looking to navigate the world of finance effectively. Whether you’re an investor or simply curious about the markets, staying informed is the first step toward making confident and informed decisions.

Navigating financial markets may seem challenging at first, but with education, clear goals, and disciplined strategies, anyone can become a successful investor. Start small, stay informed, and focus on long-term growth to make the most of the opportunities financial markets offer. Remember, investing is a journey, not a sprint, so approach it with patience and confidence.