Market Sentiment 05 (Nov 17 - Dec 25)

[behappyalways]

This is insanity: retail 0DTE option trading is about to hit two-thirds of all daily option volumes.

The market is literally a casino now
https://x.com/zerohedge/status/1945896098238771630

[behappyalways]

Retail Speculation Is Back With A Vengeance
https://www.zerohedge.com/markets/retai ... -vengeance

[behappyalways]

Institutional investors are STILL selling to retail:
https://x.com/KobeissiLetter/status/1948087971389092213

[winston]

Retail replaces ‘smart money’ as Wall Street rocket fuel

This surge in retail activity could be a positive development

Current retail trading still includes some highly speculative, often options-related meme stock activity, with the main targets being heavily shorted names such as Krispy Kreme.

by Jamie McGeever

RETAIL investors are often late to Wall Street parties, only catching the rally once it’s established and “smart money” is looking for the exit. But that doesn’t appear to be the case this time around.

Flow and survey data show that – far from playing catch-up – retail investors are a key force behind the latest US equity whoosh, that has been lifting the S&P 500 and Nasdaq to new highs on a near-daily basis.

Retail investor participation as a share of total S&P 500 flow last week reached 12.63 per cent, according to calculations by Goldman Sachs analysts.

That’s the highest share since February and well above the recent average, as retail participation has rarely exceeded 13 per cent in the last few years, their figures show.

Source: Business Times

https://www.businesstimes.com.sg/opinio ... ocket-fuel

[behappyalways]

Call option volume now the highest on record, and 30% more than at the height of the meme craze in 2021. Market upside must be a 'sure thing'.
https://x.com/GarethSoloway/status/1974903457720275121

[winston]

How ‘resilience’ became global finance’s mirage of strength

by Udaibir Das

Authorities no longer promise to prevent crises; they promise to survive them.

Stability was measured through capital ratios, liquidity coverage and default probabilities. Resilience has no agreed equivalent.

Balance-sheet resilience refers to buffers that maintain solvency – measurable but procyclical when firms retrench simultaneously.

System-level resilience depends on network structures and common exposures that individual metrics cannot capture.

Macroeconomic resilience refers to the economy’s ability to absorb and recover from shocks – often in contrast to micro-prudential tightening.

When these three levels diverge, policy signals cancel out.

Source: Business Times

https://www.businesstimes.com.sg/opinio ... e-strength