Where's the "Sad because it's true" reaction?
Agreed. The problem is that the economy should be measured by how people are actually doing (average disposable income adjusted for inflation), not the stock market prices.
I think, just my opinion here, not a statement of fact, that hinges on the job outlook. Consumers are saving because of the high unemployment. If jobs don't come back, they'll continue to save. Of course there's a minority who will hit Vegas and go on cruises nonetheless but I think the vast majority will want to wait and make sure they still have a job before spending. I think the wave of bankruptcies have just begun. Even if people don't lose their job, if they see enough people around them losing their job, that'll still hold them back. I'm seeing firsthand businesses closing and layoffs. Personally I am doing better financially than ever but I'm not spending because of the risks. I did a survey on about 200 people and the vast majority of them said they'll save. This is a game of chicken and egg and Congress needs to step in to encourage spending. Stim checks will just go straight into savings if the there's no job but we need job to stimulate spending to stimulate job creation. For some reason, household debts have increased over the last decade at the same time household saving rate also increased. Anyone care to explain why we borrowed so much if we were saving more and more? The velocity of money has decreased which is why the Fed had to keep QE going on. This time around QE is still not trickling down to the consumer level. Banks are making it way harder to get a mortgage, loan, credit card, etc... for 2 months straight I have not received any credit card preapproval letter in the mail. They're going into a defensive position. We might have a deflationary recession and the Fed doesn't seem to be very effective at preventing it while equity valuation keeps going up.
Yeah, what's more is Max-Pain is $810 for the following 2 Fridays.
Yeah, what's more is Max-Pain is $810 for the following 2 Fridays.
However, Max-Pain is $675 in 3 weeks on Fri, Jun 19 (which is a triple-witching Friday - wkly, mthly, qrtly expiries).
I think a lot of those low SP puts are actually reducing margin requirements for high SP Calls, so the 'Max-Pain' calculation is skewed. Here's the graph so you can use the C1 eyeball:
View attachment 545924
Cheers!
That’s why you would have an app. Load the VINs and the app would know every combination of car (S, 3, X, Y) and you would drag the car to the slot you wanted. If it would not work, the app would not let you place it there. Then the car would know exactly what position to be in.
