Bonds Snap Back as Robinhood Explodes Higher

Real Vision: Finance & Investing

Real Vision

News, Business News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 5 August 2021

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

DB-Aug04,2021: Real Vision’s Jack Farley, Petr Pinkhasov, and Weston Nakamura break down a day of confounding price action across global markets. Farley and Pinkhasov cover the disappointing change in U.S. Employment from the ADP, which triggered a rally in U.S. Treasury bonds, and the ISM Services reading, which blew away expectations and caused those same bonds to sell-off later in the morning. The trio examines the wild surge in Robinhood stock ($HOOD), with Nakamura and Pinkhasov exploring potential profitable trades that could profit from this enormous volatility. For the "Week Ahead" post on the Exchange that Petr referenced, click here: https://rvtv.io/3ln9Zko To watch the interviews from Real Vision's oil week, click here: https://www.realvision.com/lp/oil-week/ Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the Real Vision Daily Briefing. I'm Jack Farley. It is Wednesday, August 4th.
0:16.3	I am joined by a market veteran's Peter Pinkasov and Weston Nakamura. We're going to be analyzing
0:23.2	everything in markets just to give you a sense of what is on our radar today. Today we had two
0:28.2	pieces of divergent economic data in the US with a negative employment reading from the ADP,
0:33.9	330,000 new hires falling well short of expectations. However, only a few hours later,
0:41.0	investors saw a very different picture with the ISM services reading blowing past expectations
0:46.6	to the highest level in the history of the data set. And now let's put up a chart of the 10-year
0:52.6	bond yield. You can see that the bond market was very confused at 815 yields crashing before
0:58.9	exploding higher at 10 a.m. the release of that other data set. And lastly, how could we,
1:05.2	this be a financial analysis new show without mentioning that Robin Hood, HOD, exploded higher,
1:12.4	50%. So a facilitator of Memesock has itself become a Memesock. I want to start with you Peter
1:20.7	on the bond market. What did you make of this dynamic where yields shut down and then exploded
1:27.1	higher within about two past years? How did you digest this? Yeah, thanks, Jack. So from the get go,
1:34.6	we woke up this morning NYC time and bonds were no surprise. Up again, we saw some headlines
1:41.2	yesterday about I forgot the name of the hedge fund, but a pretty big macro fund taking about
1:46.5	a 10% loss on the fixed income side, which is, you know, it's not the end of the world for them,
1:51.6	but it definitely is noticeable. And I think that hunt for positioning was definitely felt over
1:56.6	the last five, six days or so with that real thirst for duration. And again, like I was saying,
2:03.3	we woke up this morning and there was a really strong bid once again. And we had the data come out
2:10.2	about ADP where like you mentioned, we fell short by about 300,000 on that number, bonds ended up
2:18.0	ticking higher. And again, another washout on the short side for a lot of folks. But then
2:25.6	towards the 10 o'clock in time, ISM services came out of the highest that they've ever been,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Real Vision, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Real Vision and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.