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Author Archives: Jeff Bergstrom

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Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.

JLN Financials: Debt deal fails to impress world markets; China’s Dagong Cuts U.S. Credit Rating After Debt Limit Raised; Wait, Gold Is Up on the Senate Deal? Standard

First Impressions Let’s dump the debt-ceilingJim Kharouf, editor-in-chief, John Lothian NewsIt is not clear whether this is simply a fun academic exercise for, um academics, many of which are segregated from real world experience, or an idea that actually should garner some action. The debt ceiling, which limits the amount which the US government can borrow, is now under fire by many economists. In CBC’s story “U.S. government shutdown: Is the debt ceiling a ‘stupid’ idea?,” John Blank of Zacks Investment Research cites a January report from the University of Chicago which found that 84 percent of economists surveyed, agreed…

JLN Options: Finally, a Deal! But Not Before Shutdown Spooks Investors; Fear of Missing Out Hits Volatility Index Standard

Lead Stories Finally, a Deal! But Not Before Shutdown Spooks Investors Steven Russolillo – The Wall Street JournalSenate leaders have finally reached a bipartisan deal, but not before the wrangling in Washington thoroughly spooked stock investors…More than $13 billion were pulled from U.S. stock funds over the past three weeks.http://jlne.ws/1es06H5**And of course they are merely kicking the can down the road and we will be back at this in three months (assuming the House passes the Senate’s bill which seems likely).  It is a dangerous game of brinksmanship running to the edge and stopping just short.  Some day they might…

JLN Financials: Senate cuts deal to raise U.S. debt ceiling, reopen government; The debt-ceiling doomsday device; Who Says Gold Is Money? Standard

First Impressions Do What You Say, or Stop Saying ItJon MatteMartin Wolf (“The Debt-ceiling Doomsday Device”) talks about the idiocy of having a deadline beyond which is placed the self-imposed punishment of the partial destruction of a major world economic player.  He’s right, but I’ll add to that the idiocy of having a line in the sand that we must obey… except that every single time we smudge out and redraw it so we don’t have to cross it OR be limited by it. These are the same people who try to get their kid to go to bed every…

JLN Options: Investors Embrace Volatility as Debt-Limit Deadline Looms; ISE Trades 20 Millionth Contract through Implied Order Functionality Standard

Lead Stories Investors Embrace Volatility as Debt-Limit Deadline Looms Chris Dieterich – The Wall Street JournalStock investors so far have yawned at the likelihood of a U.S. default on its debt, but trading activity in exchange-traded funds tied to the VIX is soaring, indicating traders are loading up on hedges just in case events don’t turn out as they expect. http://jlne.ws/19LlOAv October Calm Keeps Market Swings Below Monthly AverageWhitney Kisling, Nikolaj Gammeltoft & Liz Capo McCormick – BloombergEven with a deadline looming for the U.S. to avoid a debt default, it’s been a comparatively calm October for financial markets.Daily swings…

JLN Options: Using Exchange-Traded Volatility Notes? Be Prepared to Spend Money, Be Wrong; Brent options trading disrupted by Ice expiry date shift Standard

Commentary and Insight John Lothian News Launches New Comprehensive News WebsiteJLN Announces JLN Financials; Sarah Rudolph Named Managing Editor of JLN John Lothian News (“JLN”) is pleased to announce the launch of an eponymous comprehensive news website, dev.johnlothiannews.com. The new site will combine content from all previous JLN news sites and MarketsWiki.tv into a single dynamic multimedia news portal, displaying all JLN original content, newsletters, commentaries, stories, videos and interviews. JLN is also pleased to announce the launch of JLN Financials, a new newsletter that will replace JLN Interest Rates, JLN FX and parts of JLN Metals. JLN Financials coverage…

JLN Financials: As crisis fades, G20 tries to get its mojo back; World Keeps Full Faith in U.S. Treasuries If Not Politics; Time for Treasurers to Sell Short-Term U.S. Debt? Standard

Welcome to JLN Financials, a daily newsletter from John Lothian News that combines stories from the interest rate, forex, index, and gold markets. JLN Financials replaces the newsletters we previously published for those individual markets. This new and improved publication includes key stories from those markets and pulls together common news threads. It also features more original content and comments from our editorial team. It will be published daily and delivered to the inbox of all who originally subscribed to any of the previous newsletters. However, if you do not wish to receive this newsletter you may unsubscribe by clicking…

JLN Financials: US debt stand-off provokes ire among China’s officials; Obama Says Real Boss in Default Showdown Means Bonds Call Shots; Monetary activism has little to show for it Standard

First Impressions JM: Gillian Tett has it right, regarding the US budget stupidity… oh, sorry, I misspelled “conflict”.  “The risk of an accident is rising,” she writes in “Debt impasse exposes Achilles’ heel of finance”, below, and that’s a good point.  Reacting with relief to yet another “crisis averted” smoke signal doesn’t change that the government is now adopting this process as normal.  The more ordinary it becomes to threaten global economic collapse for ANY reason, much less for every little reason one can think of, the better the chances of accidentally getting there.  And if you fall off a…

JLN Options: European investors seize on cheap options to bet on US debt deal Standard

Lead Stories European investors seize on cheap options to bet on US debt dealAlistair Smout – ReutersEuropean investors are piling into cheap one-month option bets on a short-term U.S. debt deal, while loading up on protection for November in case the money runs out.http://jlne.ws/15Zg3Es And There Went the VIX Rally…Adam Warner – Schaeffer’s Investment ResearchRemember that overbought CBOE Volatility Index (VIX) we talked about? You know, the one where the VIX closed 20% above its 10-day simple moving average (SMA) within the backdrop of a generally weak VIX?http://jlne.ws/GUbBLl VXST, VIX, VXV, and the Rest of the CurveThe Options InsiderRises in…

JLN Options: Yesterday’s Volatility Bets Today’s Biggest Losers Standard

Commentary & Insight Kurt Oeler of optionMonster Discusses Options Education MarketsWiki.tv OptionMonster recently expanded into distance learning and extended their product line with more interactive programs, digital workbooks, and one-on-one mentoring. Kurt Oeler, who was recently promoted to president of optionMonster from vice president and general manager, spoke with JLN’s Sarah Rudolph about the new developments at the company – a division of optionMonster Holdings, Inc. – and the challenges of educating traders about options. According to Oeler, clients need a grounding in the basics before they can apply given options strategies, and some don’t fully understand that it takes…