Daily Brief for December 17, 2021

Daily commentary for market and investment insights

What Happened in the Markets?

Stock futures are lower, while the impact of higher interest rates has pressured big tech companies. The Bank of England suddenly increased interest rates on Thursday, while the European Central Bank said it would end its bond-buying program.

The market is in a positive-gamma environment with positive liquidity and diminished realized volatility. However, fluctuating liquidity levels and increasing the put/call ratio could discourage the positive territory.

CME Liquidity Tool - Book Depth - Dec 17, 2021
Source: CME Group

CBOE Equity Put/Call Ratio

CBOE Equity Put Call Ratio - Dec 16, 2021
Source: YCharts

Michael Howell said that a three-times US GDP debt burden overshadows increased global liquidity and the size of central bank balance sheets in FT. He mentioned that the debt maturities and refinancing issues could be systemic risks of the financial system.

Oracle Corp. is considering acquiring Cerner Corp., which develops software to store and analyze medical and healthcare data. According to the WSJ, an agreement could be worth near USD 30 billion.

Elon Musk sold 934,091 shares for more than USD 884 million, according to SEC Form 4 filings on Thursday. After his November 6 tweets about whether he should sell 10% of his Tesla shares, which is 17 million, he has sold 12.9 million shares for USD 13.6 billion as of yesterday.

FASB’s new research agenda will contain accounting for and disclosure of exchange-traded digital assets, commodities, and intangibles.

As SpotGamma indicated, short-duration option traders deteriorated call volumes of tech stocks after the post-FOMC rally. AAPL gamma levels verify the current price levels.

AAPL Total Gamma 20211216
Source: BrightHedge

Disclosure: This article expresses my own views, and I wrote the article by myself. I am not receiving compensation for it. I have no business relationship with any company whose security is mentioned in this article.

Sources: FT.com, WSJ.com, Bloomberg.com

Important Information

The investment information, comments and recommendations contained herein are not subject to investment advice. The comments and recommendations contained herein are based on personal views. These views may not fit your financial situation and your risk and return preferences. For this reason, based only on the information contained herein, investment decisions may not have the appropriate outcome.