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Luke Gromen: The Fed Has No Good Options Right Now As Yields Rise And Deficits Explode

One of the biggest questions right now, especially as yields climb as Joe Biden promises trillions of dollars in additional COVID-19-inspired stimulus spending, is when the Fed and the Treasury, soon to be run by Janet Yellen, will conspire to stop the rise in yields and stave off another eruption of market chaos. With US…

Wheels Come Off For Bus Companies, Closing Down Travel Options For Poor Americans

The wheels on the nation’s buses aren’t going round and round very much these days according to MPRnews, which notes that demand for bus travel has fallen by more than 80 percent during the pandemic, as public health authorities urge people to avoid travel where possible. That is raising concerns about the potential long-term damage…

Vol Gurus Warn Of “Definite Erosion” To Options Structure Underneath The Market

Yesterday, when looking at the latest dealer “greek” books, we reported that with peak gamma at 3,650 in the S&P, it will be difficult for the index to break out (or slide) materially above this level. And sure enough, overnight futures were quiet and continue to hold just above the 3650 level. Meanwhile, as SpotGamma…