Wall Street

The Wall Street Rally Needs a Pause. But when, and how?

After concluding an excellent 2017 and starting the new year on a positive note, Wall Street confirms its strong momentum and the bulls are still controlling the market. Prices move into unexplored territory, there is a plenty of bulls around, the chart pattern of the major indexes reflects a typical sustained trend. As always happens in similar cases, concerns are mounting about the risk of an exhaustion driven market meltdown.

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Syngenta, now delisting is official

Syngenta AG announces that today it will file the relevant form with the Securities Exchange Commission (“SEC”) in order to voluntarily delist its American Depositary Shares (“ADSs”) from the New York Stock Exchange (“NYSE”). The delisting will become effective on January 18, 2018. NYSE has advised Syngenta AG that it will suspend trading of the ADSs prior to the market opening on January 8, 2018. As such, holders of ADSs will not be able to trade their ADSs on NYSE thereafter.

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Spotify is moving to NYSE with do-it-yourself strategy

The U.S. Securities and Exchange Commission is expected to clear the way for music-streaming service Spotify to go public using the unusual method of a direct listing. The successful music-streaming service Spotify will release its stocks to the public in 2018 through a direct offering instead of the traditional IPO.

Before Spotify can directly list its shares, the New York Stock Exchange must win approval from the SEC to change its rules. “The NYSE has applied for such a change and the SEC has indicated to Spotify it’s likely to approve,” The Wall Street Journal reported.

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Beware This Rotation

Call it profit taking, call it sectors rotation, the sudden increase in volatility that hit Wall Street just at the dawn of the last month of the year deserves some attention.

Most of 2017 has been spent in an uptrend driven by the Technology sector and no significant drop hit the market during the year. Another peculiarity of 2017 has been the constant decrease in correlation among sectors: most stocks usually follow a common trend, not this year.

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Volatility for Sale

The VIX has recently been recording record lows, and even if it went up to 12.57 on Friday, 10th November 2017, due to jitters caused by the news of a probable delay in a cut in the corporate tax rate, it is still very low historically. The VIX has been taken to indicate the fear of investors regarding trading, and it can also be a measure of complacency.

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The lowest VIX since 1993 sends messages to investors

The CBOE Volatility Index .VIX, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, was down 0.24 points to 9.19, after earlier falling to 9.04, its lowest since December 1993. The VIX has never ended a session under 9 in its history but is on pace to log a close near that level today.

The VIX is derived from the price of S&P 500 Index .SPX options. A low VIX reading typically indicates a bullish outlook for stocks.

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