Trader Bets $16.7 Million on Increased Stock Market Volatility with 250,000 VIX Call Contracts as 10-Year Treasury Yield Jumps to 4.07%

A trader recently dropped a cool $16.7 million on about 250,000 call contracts tied to the VIX Index, betting on increased stock market volatility. This isn’t your average move – the strike price is 17, expiring on Feb. 14. With the VIX not breaking 17 since November, it’s got everyone …

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U.S. Capitol Police expand beyond D.C., opening offices in Florida, California, Texas, Milwaukee, and Boston. Increased threat cited.

U.S. Capitol Police are expanding outside of Washington D.C. After January 6th, they opened two satellite offices in Tampa, Florida and San Francisco, California. They just recently opened offices in Texas, Milwaukee and Boston too. USCP claim they’re opening these offices,… — Breanna Morello (@BreannaMorello) December 19, 2023

Israel withdraws 70% forces from northern Gaza due to operational failures and increased resistance strikes, Al Jazeera reports.

🚨🇮🇱🇵🇸 BREAKING: “ ISRAEL has announced the WITHDRAWAL of 70% of their forces from the northern Gaza Strip due to the failure of their operations and because of resistance strikes. The withdrawal from the northern Gaza Strip began with the truce and accelerated with the… pic.twitter.com/rKN3bNfwBy — Jackson Hinkle 🇺🇸 …

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Credit card debt in the US has hit an all-time high of $1.08 Trillion (The average interest rate on credit cards is now over 20%, also an all-time high) [Balances have increased $154 Billion year over year, the largest increase since 1999]; U.S. Household debt reaches $17.29 Trillion

Another record credit card debt Collectively, Americans now owe $1.08 trillion on their credit cards, according to a report from the Federal Reserve Bank of New York. Steadily, persistently higher prices have caused consumers to spend down their savings and increasingly turn to credit cards to make ends meet. At the same …

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A recession is still likely — Many indicators are signaling that the US is at an increased risk of entering a recession, with the following indicators worsening from the prior quarter

by TonyLiberty 1) Worsening job sentiment indicators suggest that employees are growing more pessimistic about the economy, the labor market, and their ability to find a job. • If job sentiment is weakening, it implies consumers will pull back on discretionary purchases. This can negatively impact GDP growth as spending …

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Bond volatility has significantly increased, with the only comparable time being just before the GFC. Yet SPY short interest and VIX is near historic lows; will they finally catch up?

Bond volatility has recently diverged from equity volatility. The only comparable time to this was just before the GFC. Bond volatility recently increased significantly; I wonder if the $VIX will finally catch up. pic.twitter.com/rU8F1jmANM — Swordfish (@Swordfishv44183) October 8, 2023 $SPY short interest is near historic lows. Have bears finally …

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The cost of borrowing has increased significantly, and small firms are feeling the heat. Small businesses facing tough times with rising bankruptcies.

It's hard to see a case for interest rate cuts returning anytime soon. However, we continue to believe that rates will PAUSE for longer. Inflation to 2% remains the Fed's number one objective right now. Follow us @KobeissiLetter for real time analysis as this develops. — The Kobeissi Letter (@KobeissiLetter) …

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Bidenomics/Covid Increased Federal Outlays By 30% From January 2020, M2 Money UP 36% (US Debt Tops $33 Trillion With $194 Trillion In Unfunded Liabilities)

by confoundedinterest17 Well, it looks like Ukraine’s army is surrending in droves to Russian forces. Maybe this will end Biden’s obsession with doling billions of dollars to Ukraine. Nah, Biden will continue doling out billions to Ukraine, but this time it will be to rebuild Ukraine (while major US cities …

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Mortgage Applications Increased 5.4% Last Week, But Purchase Demand Still Down -26% YoY And Refi Demand Down -29% YoY (Despite Mortgage Rate Rising To 7.31%)

by confoundedinterest17 Mortgage applications increased last week, despite the 30-year fixed rate edging back up to 7.31 percent – its highest level in four weeks. Mortgage applications increased 5.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week …

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OPEC predicts a significant supply shortfall of over 3 million barrels per day in global oil markets next quarter, potentially leading to the largest inventory drawdown since 2007… Food prices have consistently increased

The fight against inflation is still ongoing… OPEC just said that global oil markets will face a massive supply shortfall next quarter. They expect a supply shortfall of more than 3 million barrels per day. If OPEC is correct, it would result in the biggest inventory drawdown since 2007. Voluntary …

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In June, the total amount of money owed to finance companies (Consumers, Real Estate, Business) increased 17.7%. In the first quarter, the interest rate for new car loans was 6.4% with a maturity of 66 months financing $39,066. For used cars, 15.7% with 66 months financing at $23,537

by Dismal-Jellyfish https://www.federalreserve.gov/releases/g20/current/g20.pdf In June 2023, the total outstanding amount owed was approximately $1,850.9 billion dollars–up 14.7% from May! In the first quarter, the interest rate for new car loans was 6.4% with a maturity of 66 months financing $39,066. For used cars, 15.7% with 66 months financing at $23,537. Wut …

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Minutes of the Federal Open Market Committee, July 25-26, 2023: “Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs.”

by Dismal-Jellyfish Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further easing of inflation pressures. The market-implied peak for the federal …

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Something is about to break: Real yields break things up here, at 185bps, the highest since Lehman. Bond markets anticipate spiraling debt interest expense due to increased rates.

Real yields break things up here, at 185bps, the highest since Lehman. pic.twitter.com/7od1pAtJLB — Lawrence McDonald (@Convertbond) August 15, 2023 Yes for sure. Bond markets understand that, on top of the continued large deficit spending, interest expense on the debt is going to start spiraling as rates increase. This expense …

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Saudi Arabia – The number of executions has increased sevenfold

What’s going on with Saudi Arabia? A lot. Saudi Arabia hosts world leaders, strikes huge deals with China, and is all about sport. The kingdom’s sovereign wealth fund will take over the four biggest football clubs. But this is also happening: the suppression of critical voices has intensified in Saudi Arabia. Saudi courts imposed up …

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New York Fed: Total Household Debt Reaches $17.06 Trillion in Q2 2023 (increased by $2.9 trillion since the end of 2019); Credit Card Debt Exceeds $1 Trillion for the first time. The Debt Time Bomb is Ticking…

by Dismal-Jellyfish https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q2 https://www.newyorkfed.org/microeconomics/hhdc.html Wut mean?: Credit Card Balances: A notable increase of $45 billion to a record $1.03 trillion, along with a rise in credit card account limits to $4.6 trillion. Mortgages: Balances remained steady at $12.01 trillion. Mortgage originations, including refinances, were at $393 billion, up by $70 billion from …

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The US national debt has increased by $1.8 trillion since the “debt ceiling crisis”. They did it in less than 2 months. At this rate, in 3 months, the debt will be 4 trillion. US Treasury is issuing $102B of long-duration bonds in the upcoming weeks.

by RedditIsOwendByTheWS The government now lives from month to month. soon it will be from week to week. Then from day to day. and finally from hour to hour. Source : Traders Brace for $102 Billion Wave of Treasury Bond Sales – Bloomberg

Debit Balances in Customers’ Securities Margin Accounts increased by $37,058 million, or 5.75% from May to June–the biggest jump since December 2022. This implies that customers are borrowing more money from their brokers to buy securities on margin.

by Dismal-Jellyfish https://www.finra.org/rules-guidance/key-topics/margin-accounts/margin-statistics Source: https://www.finra.org/sites/default/files/2021-03/margin-statistics.xlsx Wut mean?: According to FINRA Rule 4521(d), FINRA member firms with customer margin accounts must report by the last business day of each month: Total debit balances in securities margin accounts. Total free credit balances in all cash and securities margin accounts. Debit Balances in …

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US government interest payments on federal debt surpass defense spending, indicating a trend towards increased debt costs, potentially constraining fiscal agendas.

The US government interest payments on the Federal debt are now higher than the annual defense spending. This is likely the initial stages of a trend, and if no solutions are implemented, other components of the fiscal agenda may soon be constrained by the escalating cost of… pic.twitter.com/hBY2haxNyG — Otavio …

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