Daily Brief for December 20, 2021

Daily commentary for market and investment insights

What Happened in the Markets?

European and Asian stocks plunged on Monday as investors worried that the spread of the Omicron Covid-19 cases would slow economic growth and boost pressure on inflation. U.S. stock futures, bond yields, and oil prices dropped on the escalating concerns for the global economy.

Fitch Global Inflation 20211220
Source: Fitch Solutions
VIX Futures Prices 20211220
Source: vixcentral

As SpotGamma mentioned, the December 17 options expired, especially ARKK’s USD 1.5 billion expired put delta, which could provide recovery and adjust the volatility. With a low breadth and below 20- and 50-day moving average levels S&P 500 may support upside potential.

E-Mini S&P 500 Open Interet Percent Change

E-mini sp500 OI Percentage weekly 20211217
Source: CME Group

Goldman Sachs has slashed its U.S. growth projection, noting Sen. Joe Manchin’s view that he won’t support President Joe Biden’s critical USD 2 trillion spending bill.

The Netherlands imposed a nationwide lockdown, closing bars, restaurants, and nonessential shops until mid-January.

Just before year-end, traders and portfolio managers are likely locking their positions to realize returns after a robust year in the markets, which can lead to flat volumes and rising market volatility.

The study, performed by finance professors Antoinette Schoar at MIT Sloan School of Management and Igor Makarov at the London School of Economics, examined every Bitcoin transaction over a 13-year record. The analysis indicated that the top 10,000 bitcoin accounts carry 5 million bitcoins, an equal of around USD 232 billion.

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, marketwatch.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.