After successful triumphs over US and UK in the last decade bears are back in business in 2015 and this time they have laid their eyes on the world’s fastest growing economy China. It has been fueling the global economic growth for past several years and any slowdown will have repercussions not only on world markets but also on major asset classes.
In order to gauge a country’s economic performance, one can look at key economic parameters like Money market (Interest Rate), Economic growth (GDP Growth Rate), Business performance (Industrial Production), Consumer confidence (Retail Sales), Trade analysis (Exports), Housing sector (Newly Built Home Prices), Investment (Capital Flows), Government reserves (Foreign Exchange Reserves) and finally Equity markets (Shanghai). Let us understand how China’s financial and economic indicators are performing in the current scenario.
We have continuously flagged “15-Minutes Built Up Screen” in our F&O product as one of the most important screens for devising profitable trading strategies. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.
We highlight a very important feature of Heckyl F&O platform: 15-Minutes Built Up Screen in today’s blog. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.
While there are various use-cases for the 15-minutes built up screen, we highlight the short selling use case in this blog. Short selling implies selling a stock on a particular day and buying the same on the next trading day. The underlying reason for short selling is that the trader expects the stock price to go down. An equivalent of short selling can be buying a put of an appropriate strike price.
With low inflation and falling inflation expectations, the Federal Reserve is believed to execute a rate hike this year. The funds rate is the mechanism the Fed uses to regulate short-term interest rates in the economy, which in turn moves across the yield curve.
The Fed has two objectives: stable prices and firm economic growth. The Central banks stimulate the economy by cutting rates when the economy is slowing down. While lower rates can bring economic growth, they mostly come with an inevitable consequence: Inflation. Read the rest of this entry »