Too much, too soon. The 36% increase in crude oil prices since August is likely to stimulate a strong production response, with a typical lag, sufficient to keep oil inventories elevated above the five-year average for all of 2018, despite the extension of OPEC’s production cut to the end of the year. It may even undermine OPEC compliance and negatively impact oil demand.
The stock market rotation is in full swing by the looks of it. In the immediate aftermath of Friday’s strong U.S. jobs report, U.S. index futures dropped sharply as the data increased speculation that the Fed may increase interest rates earlier than was previously priced in.
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it to the test.
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully—but not always—earning a profit.