OpEx Selloff, Bybit Hack and Time to Hedge Risk?

Thank you guys for joining me and welcome to Episode 16 of Season 2 brought to you by Magnelibra Trading & Research (MTR). This episode is entitled “OpEx Selloff, Bybit Hack and Time to Hedge Risk?”

Quick Disclaimer: The following podcast is for educational purposes only. This is not a solicitation to buy or sell commodity futures or options. The risk of trading securities, futures and options can be substantial and may not be appropriate for all listeners.

There is a lot to cover here from ByBit heist and major implications from Friday’s sell off and Options Expiration. It seems risk just up-ticked here and perhaps too much complacency exists as we see credit spreads as well telling us too many lack the proper hedges at this time. With credit spreads historically tight and in the context of of a 4.25% risk free rate, there seems to be a complete disconnect from reality and the potential for risk to jump. We get it, we get the FOMC and global central banks have and continue to pump liquidity into the market places and this is evident with the up tick in M2. However we also understand that credit spreads are not accurately quantifying the potential for black swans at this point in time. Basically everyone is all in and nobody thinks nominal asset prices can lead to a prolonged contraction. It is evident in the credit spreads shown here:

With credit spreads at historical lows pretty much and with Elliot Wave Intl. analysis telling us this is the most overvalued equity market since 1929, complacency seems rampant:

Ok we dive deep into all of this, what it means and how you should be interpreting it all, we also have a ton of other information, technical charts and the levels to watchout for this week. If you haven’t subscribed yet, please do, the knowledge and insight we provide will change your investing and trading mentality and you won’t regret it. Anyway in order to listen to the rest please hit the subscribe button below.