Daily Briefing – November 3, 2020

Published on
November 3rd, 2020
Duration
42 minutes


Daily Briefing – November 3, 2020

Daily Briefing ·
Featuring Haley Draznin, Ash Bennington, and Hari Krishnan

Published on: November 3rd, 2020 • Duration: 42 minutes

Real Vision senior editor Ash Bennington welcomes Hari Krishnan, head of volatility strategies at SCT Capital, to break down the hidden forces driving markets on U.S. election day. Disagreeing with the linear narratives about how election results impact markets, Krishnan instead analyzes the market plumbing, looking at the trend spike in the Federal Reserve's balance sheet, interest rate volatility, and the likely forced selling options dealers’ will have to conduct should the S&P 500 start to show weakness. After Krishnan shares with Bennington his theory explaining the "kink" in the VIX futures curve, he imparts the following advice to traders: "never panic." In the intro, reporter Haley Draznin breaks down investor optimism in global equities, the impact of high turnout of U.S. voters, and the halting of Ant Group's massive I.P.O.

Comments

Transcript

  • ar
    andrew r.
    6 November 2020 @ 16:51
    I'm not the biggest fan of vol discussions, but Mr. Krishnan is an engaging speaker and has a great command of the subject.
  • JJ
    John J.
    5 November 2020 @ 22:28
    Way too general. Where's the beef?
  • BH
    Bradley H.
    4 November 2020 @ 00:09
    My sweet lord... i’m not smart enough for this one 😐
    • AB
      Ash B. | Real Vision
      4 November 2020 @ 00:18
      When I first started talking about this stuff with Hari, I felt *exactly* the same way...
    • HK
      Hari K. | Contributor
      4 November 2020 @ 00:25
      Hey Bradley, happy to answer any questions you may have, while glued to the TV! Thx
    • MC
      Mark C.
      5 November 2020 @ 07:08
      I simultaneously felt more and less intelligent during this interview. Less because I was mostly clueless. More because I was figuring out what I was clueless of...and definitely motivated to learn. Thank you Real Vision and especially Hari and Ash.
  • MC
    Mark C.
    5 November 2020 @ 05:37
    Wow. Grear RVDB. I suspect some people would have had something else on their mind yesterday...and may have skipped it. Please promote this so others are aware of its value.
  • AH
    Attila H.
    5 November 2020 @ 03:30
    This Interview was just fantastic, thanks !
  • PD
    Pierre-Luc D.
    5 November 2020 @ 00:01
    Wow, this daily briefing was absolutely great! I just want to find all interviews with Hari now! The dynamic between him and Ash was perfect. I learned a lot. Thanks!
  • CM
    Cory M.
    4 November 2020 @ 23:46
    Hari is totally great. Thank you. Mssrs Greer, Thornton and Floyd should check out how RVDB can be done with focus and intelligence and no obsession with "the tape."
  • CJ
    Calvin J.
    4 November 2020 @ 01:13
    At 37:48, Where is the liquidity, where that is people can pile on to more risk. I would like to see this concept broken down a bit more and how you would position around this concept.
    • HK
      Hari K. | Contributor
      4 November 2020 @ 19:26
      Hey Calvin, you may want to watch one of Kevin Coldiron's videos about his (co-authored) book "The Rise of Carry", for more details. Thanks!
  • LT
    Lisa T.
    4 November 2020 @ 03:35
    Awesome. This is why I like RV. Thought provoking discussions that stretch my knowledge, make me dig deeper into finance and challenge my understanding. Thanks Ash and Hari. Keep up the good work. Variety in the daily briefing is good.
    • HK
      Hari K. | Contributor
      4 November 2020 @ 18:07
      Thanks!
  • RL
    Renee L.
    4 November 2020 @ 03:36
    One of the best interviews to date- keep up the good work!
    • HK
      Hari K. | Contributor
      4 November 2020 @ 18:07
      Many thanks, Renee
  • IM
    Indranath M.
    4 November 2020 @ 05:16
    Great interview Hari - thanks for the insights. Quick question if you are following the comments - Dealer Gamma / GEX graph from squeeze metrics - that is dark pool data right? Can you unpack a bit more on how do you use these?
    • HK
      Hari K. | Contributor
      4 November 2020 @ 18:07
      Hi Indranath, thanks! I think the GEX simply multiplies open interest at each call strike by its gamma and OI at each put strike by -gamma and adds them up. Publicly available information in S&P Emini, cash and SPY options. Best, Hari
  • LA
    Leslie A.
    4 November 2020 @ 02:10
    Hari's clearly knowledgeable. I learned quite a deal about the market maker's relationship providing liquidity to institutions. I found the advice on thinking about the S&P alongside other assets interesting, I'd like to hear a more tailored segment on institutional investment strategies versus personal investment strategies. Great interview!
    • HK
      Hari K. | Contributor
      4 November 2020 @ 02:22
      Thx Leslie ... We can draft something if the public is interested! Be well.
    • AH
      Andrew H.
      4 November 2020 @ 02:36
      @Leslie seconded! So much to chew on here delivered in the most digestible manner. Thank you Hari and Ash! +1 for the additional segment.
    • LA
      Leslie A.
      4 November 2020 @ 16:53
      Please do, Hari!
  • RY
    Roy Y.
    4 November 2020 @ 10:01
    Thank you Ash and Hari Insightful
  • MO
    Master O.
    4 November 2020 @ 06:35
    Hari can you please interview Mark Spitznagel for Real Vision?
  • MD
    Matt D.
    4 November 2020 @ 03:20
    Great DB Ash, Hari is a great guest. Clear explanations and quite funny/interesting. Positioning under the neutral gamma levels (or above) is a good strategy. Flows/liquidity also a great point. Lots in there for keen listeners. Thanks again! Cheers.
  • IN
    I N.
    4 November 2020 @ 01:08
    Also mark that down as one of the great RV DBs. Certainly beats looking at election results! Hari nailed so much, including his closing statement on the decision tree. Much love!
    • HK
      Hari K. | Contributor
      4 November 2020 @ 01:53
      Many thanks I N!
  • SN
    Stefan N.
    4 November 2020 @ 01:29
    Yes, actionable ideas would be welcome otherwise great session. Haley has a great crib as well.
    • HK
      Hari K. | Contributor
      4 November 2020 @ 01:52
      Happy to supply some, pls send an email to harifinancialmarkets@gmail.com
  • AG
    Adrian G.
    4 November 2020 @ 01:42
    Hari, great discussion. Do you have Twitter or what's the best way to follow you?
    • HK
      Hari K. | Contributor
      4 November 2020 @ 01:47
      I am a bit of a Luddite, sadly. harifinancialmarkets@gmail.com is the best port of call
  • JS
    John S.
    4 November 2020 @ 01:07
    Excellent discussion
  • BA
    Bruce A.
    4 November 2020 @ 01:04
    Really good stuff.
  • BC
    Burton C.
    4 November 2020 @ 00:56
    He's got a lot of good to say, but this is not a daily briefing.
    • BC
      Burton C.
      4 November 2020 @ 01:02
      It's Tuesday... Where's Tony?
  • LB
    Leanne B.
    4 November 2020 @ 00:45
    I really liked this one. It was more complicated than most but gave exposure to ideas I hadn’t heard before. Also, great timing on the advice on what to do if the market doesn’t do what you expect. More Hari in the future please.
    • HK
      Hari K. | Contributor
      4 November 2020 @ 00:48
      Thanks Leanne!
  • LL
    Ludovico L.
    4 November 2020 @ 00:11
    Awesome sophisticated insight from Hari (as per usual) - love the insight he gives on dealer positioning and delta hedging, really makes you think about the other side of the coin and how you can become aware of that positioning requirement and take advantage of it if possible
    • HK
      Hari K. | Contributor
      4 November 2020 @ 00:26
      Many thanks