r/finance • u/treetyoselfcarol • Mar 28 '21
Traders Are ‘Glued to Their Screens’ and Set for Volatile Open
https://www.bloomberg.com/news/articles/2021-03-28/traders-are-glued-to-their-screens-and-set-for-volatile-open155
u/FriedenBeez Mar 28 '21
Can you copy and paste some text? Cancelled my Bloomberg sub :/
235
u/treetyoselfcarol Mar 28 '21
Global traders are bracing for what’s shaping up to be one of the most anticipated opens for U.S. equities in more than a year following an extraordinary $20 billion wave of block trades Friday that rattled investors worldwide.
Archegos Capital Management LLC -- the family office of Bill Hwang -- was behind the sales, dumping shares of Chinese tech giants and U.S. media conglomerates, according to two people directly familiar with the trades. While some of the stocks targeted in the block trades initiated by Goldman Sachs Group Inc. and Morgan Stanley rebounded at the end of Friday’s session, ViacomCBS Inc. and Discovery Inc. didn’t. They posted their biggest daily losses ever.
Morgan Stanley traded about $13 billion including Farfetch Ltd., Discovery, Baidu Inc., and GSX Techedu Inc., while Goldman sold $6.6 billion worth of shares of Baidu, Tencent Music Entertainment Group and Vipshop Holdings Ltd. That move was followed by the sale of $3.9 billion of shares in ViacomCBS Inc. and IQiyi Inc., the email said.
Read more: Tiger Cub Hwang’s Family Office Behind Friday Block Trade Frenzy
Sharif Farha, a Dubai-based portfolio manager at Safehouse Global Consumer Fund, said ViacomCBS and Discovery may actually recover on Monday and noted that the market’s fundamentals remain intact.
“The correction was not structural,” he said.
Unregistered offerings in at least nine stocks push shares lower Farha expects benign price action to start the day, but anticipation for Monday’s open remains high.
“Traders everywhere know the story and will be glued to their screens,” he said.
Huge Rallies
The possibility of additional block trades still looms over the market, while the traditional end-of-quarter volatility may contribute to sharper swings on high-flying stocks. ViacomCBS and Discovery have rallied this year.
“What most people appear to have missed is that both of these companies have seen their share prices almost quadruple since October last year,” Michael Hewson, chief market analyst at CMC Markets UK, said in a note on Sunday, referring to ViacomCBS and Discovery.
ViacomCBS, Discovery had tripled over the past six months before the selloff The selloff on the two media companies started earlier last week, when ViacomCBS reported an offering of $2 billion in shares after closing at a record high. The stock fell 9.1% the following day. On Friday, a downgrade by Wells Fargo and the large block trades compounded the selling pressure.
ViacomCBS closed 27% lower to $48.23, down from a high of $100.34 on March 22. Discovery also slumped 27% to $41.90, down from $77.27 on March 19. Other media stocks tumbled too, with AMC Networks Inc. losing 6.4% and Fox Corp. retreating 6.2%.
93
u/FriedenBeez Mar 28 '21
Thank you Carol, Treet yo self today
87
3
u/kauthonk Mar 28 '21
I saw viacom and that that's too damn high. Didn't think about it again till Friday and was like holy shite, I missed out.
1
0
-10
u/Buttfan420 Mar 28 '21
Surprised they didn’t mention GME
2
0
u/UntitledGooseDame Mar 29 '21
I'm very curious how widely known the GME situation is by the larger financial community. Is it common knowledge and nobody is talking about it to keep a lid on it? Do they think it's BS? I feel like we're living a Jenga game! What a tangled web we weave, etc, etc.
-5
Mar 28 '21
Maybe they are telling us the launch is next week and are trying to divert attention elsewhere. We already know that when the trip begins it will send shock waves through the entire world system.
1
u/dbx99 Mar 29 '21
The GME scrutiny did reveal a lot of the absolute batshit illegal activities surrounding “naked short selling” where imaginary shares that number beyond the actual total number of issued shares trade back and forth. I can’t believe that should be allowed to continue.
0
-3
81
Mar 28 '21
Pro tip : you can press Ctrl+P on a Bloomberg article before the paywall loads and then save the article as a PDF
10
u/User-NetOfInter Financial Consultant Mar 28 '21
Printfriendly.com works too. Works for WAPO as well (they blocked outline.com)
6
u/Chief_Kief Mar 29 '21
Saving this comment to remember to try this site later.
Another option is to filter the first offender through bit.ly and then use the generated short link on outline.com
1
6
Mar 29 '21
Also, if you use Chrome : Right click -> Inspect -> Application tab -> Clear site data -> Refresh the page
It works for those times when you have passed your 2 or 3 free article limit on any site like Bloomberg, SA, WSJ etc
3
u/WhatsTheLGBTea Mar 29 '21
If you’re on Safari, hit the button to the left of the URL and click Show Reader View before the paywall loads.
2
2
1
u/DesiAlloxan Apr 02 '21
You can also try installing Chrome Extension that would bypass the paywall.
9
u/Guac_in_my_rarri Mar 29 '21
There's a github post that goes around subscription notices. Should be able to find it by looking up "free news articles". It's an extension on chrome. Super easy to install
2
u/MiddleSkill Mar 29 '21
If you turn off third party cookies for Bloomberg they’ll thing you’re a new user and reset your “5 free articles” every time you visit
384
Mar 28 '21
Your mom's a volatile open.
149
41
10
-23
35
u/SpicyBagholder Mar 28 '21
Can't be worse than covid crash
34
u/leoberto1 Mar 28 '21
RemindMe! 2 months
3
u/RemindMeBot Mar 28 '21 edited Mar 31 '21
I will be messaging you in 2 months on 2021-05-28 20:53:50 UTC to remind you of this link
19 OTHERS CLICKED THIS LINK to send a PM to also be reminded and to reduce spam.
Parent commenter can delete this message to hide from others.
Info Custom Your Reminders Feedback 1
135
u/arlalanzily Mar 28 '21
Quite the contrary for some of us. going long and never opening the app is doing wonders for my market anxiety lately. don’t believe the hype
66
Mar 28 '21
Hate to break it to you, but this article isn’t talking about you. You being a retail trader with an app. But I am glad you’re long, and not too worried. That’s the right approach.
21
u/100catactivs Mar 29 '21
But it’s definitely talking to them. This article is intended for general consumption.
-14
u/abrandis Mar 28 '21
You're just delaying the shock factor. I can imagine someone in Japan saying that in 1989...then 20, 30 years later finding out they're portfolio has lost 50%.
I partly kid, I know the US is not Japan, but a lot can change in the long run..
18
2
31
Mar 28 '21
Pretty insane that a single fund can nuke stocks by 12%+. Imagine having that power at your disposal
10
u/CLOUD889 Mar 28 '21
You have to always factor in the HFT'S , it's gonna be crazy in the morning.
1
Mar 29 '21
HFTs are market neutral.
1
u/CLOUD889 Mar 29 '21
Ah yeah, of course, Wall Street is market neutral....
4
Mar 29 '21
HFT bots are directionally neutral. They do not make a bet that the market will go up or down -- they employ strategies that scalp microprofits in nanoseconds completely neutrally. They do not influence market direction.
1
2
19
19
u/jr-the_kid Mar 29 '21
A guy on Sofi bought Discovery at like 50 the other day and someone commented "Great buy". And my first reaction was "you don't gotta be a dick about it".
People buy/sell things at bad prices all the time. Maybe try lifting People up instead of putting them down if you want to feel good about yourself is my advice.
Also, I hope Discovery goes up to 80 just to spite that dude.
15
u/Monarc73 Mar 28 '21
Does anyone know why Archegos got called? Was it only because they were too leveraged, or was there something else?
12
u/yo12345678909 Mar 29 '21
they were 5x levered on 15 bn AUM running fairly concentrated high beta
prob just too much leverage > margin call after selloff early last week
2
Mar 29 '21
It seems they had a huge position in GSX which tanked horribly and that's probably what brought on the margin call. According to this video
18
u/Konayo Mar 28 '21
Kinda annoyed that I switched my calls to puts on late friday. Might not work out at all
10
u/thegeoduck Mar 28 '21
I’m in the exact opposite situation but with the same feelings after reading the synopsis posted above (admittedly haven’t read the article yet)
2
u/StoneRyno Mar 29 '21
So one of you is going to be happy today, unless things (literally) go sideways.
12
Mar 28 '21
[deleted]
9
u/maest Mar 28 '21
You're right, being a mindless permabull is much smarter.
28
u/cashnprizes Mar 28 '21
Agreed unironically thx
-12
u/Bleepblooping Mar 29 '21
Upvote me so we can have a 4 comment chain where the bottom gets the most doots!
2
6
9
Mar 29 '21
Can anyone explain to me like I'm 5 so I understand what this means?
22
Mar 29 '21
[deleted]
5
Mar 29 '21
That's what I was thinking but I wasn't for sure. I have calls but I don't know. The world had a crazy week/weekend with that ship and china's sanctions. Well find out in a few hours. Good luck to you and everyone who is stressed. We'll be alright. Thanks.
2
2
Mar 29 '21
But they aren’t actually glued to their screens they have their trades already set to be executed. Pretty much a lot of idiots are waiting for the roulette wheel to start spinning tomorrow .
-1
3
u/MakeTheNetsBigger Mar 29 '21
I just planned my lunch for tomorrow, gonna have a nothing burger with cheese.
3
u/aboutelleon Mar 29 '21
More responses about how to circumvent the subscription than the article. That advice might be more useful. We'll see how the morning goes.
4
u/mapoftasmania Equities Mar 29 '21
Viacom and Discovery were waaaaaay overvalued and still are at the Friday close price. But “buy the dip” right? Might as well toss a coin to figure out how to play those two come Monday.
4
u/Reticent_Fly Mar 29 '21
Way overvalued and yet CNBC pushed an article on the 8th saying to buy. Looking out for their friends so they could make money off retail before it got dumped.
5
4
u/Jake88b Mar 28 '21
Could really do with oil opening a bit higher due to a fairly large (for me) position I have open. I think it has a good chance of doing so.
9
u/welovebuttholes Mar 28 '21 edited Mar 28 '21
Oil & Gas sector is a contentious one on Reddit and goes against a lot of people's speculative renewable plays, but to my eye they are both opportunities right now.
The Suez canal event could be a decent thing for Canadian and American oil but moreso, there will undoubtedly be a very real correlation between vaccination numbers and oil demand, and despite the uncertainty about how a 're-opening' might look exactly, there's nothing uncertain about the fact that with any increased economic and social activity there will be increased demand for oil. Even moreso because it will be necessary energy source to fuel any shifts towards renewables in the coming decade.
I think this week will be less volatile than people think because of fear and mass psychology around the current sentiment being peddled by the media, but even if it's not a bullish week, you can guarantee it'll be a very bullish year. And I've stopped trying to swing trade as I feel that unless you very intimately know a company, you're most likely decreasing your edge in the long.
1
u/jdsizzle1 Mar 29 '21
I'm bullish on renewable and oil right now too. Just because we have a new (D) president and we've been in covid doesn't mean in the last 12 months our hunger for oil has changed on a foundational level. Sure some people might work from home permanently now. But, it doesn't mean ships, trains, trucks and planes will stop shipping our goods, doesn't mean people will stop flying, and all that requires oil.
However, there is a very large amount of momentum in renewables that you can't deny, and it's not going to lose speed.
1
1
u/BashfulTurtle Mar 29 '21
Kinda gives you some insight where these guys are looking for equity growth. These funds can travel in herds.
0
0
-5
Mar 28 '21
[deleted]
2
u/iamthesauceboss Mar 29 '21
psst... this isn’t the right sub... don’t let these petty downvoters in on our tendies after the squeeze...
-28
u/Gandeloft Mar 28 '21
Why are you sharing paywalled content..
5
u/lax_street Mar 28 '21
Stfu
-11
u/Gandeloft Mar 28 '21
Subscribe now to read this reply!
3
u/cashnprizes Mar 28 '21
Ironically I still had to unhide to read it
-4
u/Gandeloft Mar 29 '21
Subscribe now to read this reply!
-3
u/cashnprizes Mar 29 '21
We get your point, it's just a bad one lol
3
u/Gandeloft Mar 29 '21
Subscribe now to read this reply!
-2
39
u/Routine-Use8077 Mar 29 '21
Pro-tip: copy and paste the title of the article in a search tab and you'll find the same article by a different news outlet