Today’s Likely Fed Funds Rate Hike Won’t be the Last One for a While

One would think that as the decision-date (which is today) for the Federal Reserve's next hike in the Fed Funds rate approached, the near certainty of it being ratcheted higher be evidenced by more literal bets to that end. That's not the way it's panned out, however. Amazingly enough, based on the futures for the Fed Funds rate, traders are...

5 Lies Investors Tell Themselves When Stocks Are Surging

Denial can cost you in more ways than one By John Coumarianos, MarketWatch With U.S. stocks in record territory, investors need to take their emotional temperature. Emotions can be your worst enemy when it comes to money and stocks, especially during big, rapid market moves that can warp your thinking in unforgiving ways — like these: 1. Forgetting that purchase...

The Arms Index Says This is the Least-Enthusiastic Rally in Years

The headlines of late have been even more binary than usual. That is to say, half of traders and commentators are extremely bullish, while the other half are alarmingly bearish; there aren't too many people in the middle. Each camp has plenty of evidence in support of their argument too. Well, here's a piece of evidence you can add to...

By One Measure, Traders Are the Most Bullish on Stocks Since at Least 1997

By Julie Verhage, Bloomberg This equity rally has legs. At least that's the signal coming from the options market, where one metric suggests that traders haven't been this optimistic about what's to come in almost 20 years. The price of call options that bet on a 10 percent rise in the S&P 500 Index are at the most expensive on...

Look for the Fed to Hike Interest Rates this Week and Ignore the Elephant in the Room

By Greg Robb, MarketWatch You can expect the Federal Reserve to raise interest rates this week, but look for it to shy away from the bigger question looming for financial markets: How does the shock outcome of the presidential election change the economic landscape? The Fed is widely expected to announce an increase in the target range for its federal...

OPEC’s Historic Deal Won’t Be Enough to Drain Oil Stockpiles

By Javier Blas and Angelina Rascouet, Bloomberg OPEC is likely to bring the oil market into balance by the middle of next year, but its production cut looks set to fall short of its stated goal of draining the stockpiles that are depressing prices. The oil market will rebalance “toward the middle of next year," according to Nigeria’s Minister of...

Regular Investors Don’t Love This Rally Yet — Here’s What That Means for Stocks

By Victor Reklaitis, MarketWatch Rather than everyone breaking out the champagne as the weekend nears, there is still a fair amount of discomfort over the stock market’s relentless surge. There is getting to be a shortage of superlatives for this market, says Instinet’s Frank Cappelleri, noting a growing sense that it shouldn’t be acting the way it is. (How about...

Sears Holdings (SHLD): Looming Disaster Sets Up a Certain Kind of Option Trade

Sears Holdings (SHLD) may be up today, but the knee-jerk response to the Q3 earnings beat wasn't built to last. The retailer is still bleeding cash, but this time around it doesn't have a clear path to refilling the coffers. The end may be nearer than most people think. Vital stats: In its third fiscal quarter of 2016, Sears reported...

ECB Surprises by ‘Tapering’ its Massive Bond-Buying Program from Next April

By Sam Meredith, CNBC The European Central Bank (ECB) announced a continuation of the bank's generous asset-buying program on Thursday, although a reduced pace of purchases is set to start from April next year. Current asset purchases of 80 billion euros ($86 billion) a month were due to end in March 2017, but will now be extended until at least...
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