Daily Brief for December 21, 2021

Daily commentary for market and investment insights

What Happened in the Markets?

Put Volumes 20211221
Source: spotgamma

U.S. stock futures rose, signaling stabilization after consecutive losses this month on Monday. Indications of booster shots that offer protection against Omicron have strengthened expectations that its growth can be eased. CBOE Volatility Index declined to 21 compared to 27 yesterday.

The current account deficit rose to USD 214.8 billion in the third quarter, the Commerce Department said Tuesday.

SPX put volumes are indicating markets declined without support. Cem Karsan also said that volatile moves in the market with sticky delta skew could signal upward movement, like in February 2016.

SPX Total Gamma

SPX Total Gamma 20211221
Source: BrightHedge

Also, the December 17 options expiration eliminated most delta positions, resulting in positive fundamentals, strength, and realized volatility to enhance the rally.

Goldman Sachs expects the S&P 500 to climb a further 9 percent by the end of 2022. However, Morgan Stanley and Bank of America expect economic deceleration and anticipate a 3 to 5 percent plunge.

According to Goldman Sachs analysts, the WSJ reported that MSFT, GOOG, AAPL, NVDA, and TSLA accounted for half of the broad benchmark’s gain since April. John Rekenthaler also wrote that the best-returning industry, gaining 10.5% annually in real terms, is technology in the U.S.

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, Morningstar.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.