Category: Currencies

A Markowitz Walk Down Crypto-land: Modern Assets for Modern Portfolios

Introduction The purpose of this article is to apply the mathematical framework of Modern Portfolio Theory to an unconventional asset class. Cryptocurrencies, Bitcoin included, are a novel and little known asset class with a relatively low market cap of $44 billion and very high volatility. By applying Markowitz’s Portfolio Theory we intend to take advantage […]

Market Recap 30-04-2017

United States After the French election relief and solid first quarter earnings reports the US equities finished the week higher. Slightly more than half of the S&P 500 has reported, showing positive signs of improving economic growth, with best performers tech and industrial companies. The S&P 500 after the rally at the beginning of the […]

Market Recap 09-04-2017

United States US stocks took a break after last week gains. The S&P 500 fell 0.3% closing the week at 2355.54, while large-caps were flat with the Dow Jones at last week’s levels. One of the major drivers of financial markets was the FED releasing the minutes of its mid-March meeting. The minutes highlighted the […]

Czech Koruna Ready to Jump as CNB Removes Floor

The Czech koruna, the currency of an economically relatively small country, recently has gained much attention by an increasing number of speculators. They have been positioning themselves to benefit from a possible appreciation of the Czech currency. For three years, the Czech National Bank (CNB) has kept the koruna above the determined level of 27 […]

Market Recap 12-03-2017

United States The S&P 500 closed at $2,372.60, slightly depreciating when compared with the beginning of the week, where it was standing at $2,375.32, but still higher than the weeks’ low of $2,357.98. Similar was the fate of both the Dow Jones Industrial Average and the NASDAQ, as they closed at slightly lower levels than […]

Market Recap 19-02-2017

United States On the week ended February 17, 2017, US stocks closed at record highs as investor sentiment remains positive given the possibility of changes to US corporate tax structure, as well as the likely loosening of regulations. The Dow Jones Industrial Average increased by 1.4% to 20,624, while the S&P500 increased by 1.2% to […]

Market Recap 12-02-2017

United States Last week saw US equities slightly increasing in a low-volatility environment. Indeed, the S&P 500 closed 0.81% up from last week close, while the Nasdaq and the Dow Jones closed on Friday up 1.18% and 0.92% respectively from the previous week. The VIX index floated between 10.5 and 11.7 continuing to show the […]

Trumponomics: Feeding the Bull Steroids

Donald Trump’s economic policies focus on three key areas; protectionism, loose fiscal policy and deregulation. In this summary report, we will give an overview of Trump’s policies before exploring the effects that they have had on financial markets. For conciseness, we will not look at Trump’s immigration policies and plans to ‘clean up Washington’. Protectionism […]

Market Recap 27-11-2016

United States Not really a Black Friday for the US stock market. All the three major indexes continued their rally closing at historical highs and with similar gains. The S&P 500 closed at 2,213.25, up 1.4% from last week, the Dow Jones closed at 19,152.14, up 1.5% while the Nasdaq closed at 5,398.92, gaining 1.5%. […]

Market Recap 20-11-2016

United States On the week ended November 18th, stocks continued their post-election rally. Investors appear optimistic of President-Elect Donald Trump’s proposed expansionary fiscal policies. The Dow Jones Industrial Average ended a seven-trading-day post-election rally on Wednesday, during which it gained more than 5.7% reaching a new all-time high. The S&P 500 index gained 0.6% to […]

Market Recap 13-11-2016

United States In the US, as elsewhere in the world, the markets were driven by the results of US elections. The victory of Donald Trump boosted equity markets. Indeed, The Dow Jones Industrial Average soared to new heights, adding 5.4% for the week which is its biggest weekly gain since December 2011.  S&P 500 rose […]

US Elections – Politics Toying with Financial Markets

The US Electoral System In the US, the race for presidency is a long process that includes primaries, caucuses and national conventions, in which the parties’ candidates are determined. The main popular vote on who is going to be president of the US is called general election and will take place on the 8th November […]

Volatility Shapes

The famous Black-Scholes model is a mathematical model used for pricing financial derivatives. It is particularly useful because it offers an explicit formula for the value of a European option in terms of time to expiry of the contract T, risk-free interest rate r, strike price of the option K, price of the underlying at […]

How to Manipulate the Bitcoin Market (3/3)

In the second part of the article, we saw how to spot anomalous price movements and how to profit from the divergence between futures and spot prices in the crypto market. Moreover, we showed the key indicator on which we should always be focused on. In this third part, which is the last one in […]

How to Manipulate the Bitcoin Market (2/3)

This article is the follow up to “How to Manipulate the Bitcoin Market (1/3)”. In the second part, we want to show how the spikes in price between the end of May and the first half of June 2016 were the result of just a few investors who used huge leverage to strengthen their position. […]

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