A Case for News Sensitivity and Unreliable Liquidity As Early Warning Signs from Markets

(This is an excerpt from an article I originally published on Seeking Alpha on March 16, 2014. Click here to read the entire piece.) {snip} Central bankers continue to warn financial markets to properly price in risk. On March 13th, Chris Salmon, the Executive Director of Markets at the Bank of England (BoE) continued the … Read more

Protective Puts Versus Puts for Profit

A friend and I have actively discussed how best to position ourselves for the near-term, bearish risks in the market. As my favorite technical indicator, T2108 – the percentage of stocks trading above their 40-day moving average (DMA), hit oversold territory, he asked my opinion about adding to his SSO put spread. Puts on SSO … Read more

FHA Commissioner Stevens Tells Us Not to Worry About FHA’s Cash Reserves

The Washington Post issued an alarming article today titled “Housing Agency’s Cash Reserves Will Drop Below Requirement.” In what seems like yet another case of “here we go again,” Federal Housing Authority (FHA) Commissioner David H. Stevens tells us not to worry about his agency’s dwindling reserves even as mortgage delinquencies rise. The Post explains … Read more