Remy: Ahead of the final trading session of the week, let's go out to Chicago to see how Friday trade is shaping up over at Sebo. Now FinTech TV contributor Errol Coleman is live from the trading floor in Chicago. Happy Friday, Errol. Great to have you back on. So it has been quite the week across all asset classes. So what activity are you watching in the pre-market today?
Errol Coleman: You know, Remy, the activity that I'm watching right now is actually in the Nasdaq futures. We saw the overnight range expand with the futures trading as high as 29,666, and that puts the Nasdaq a little bit over 900 points above the lows we saw following Wednesday's interest rate decision. And I mean what's interesting about this move is that I think some of the initial bearish reaction in the rate decision may have actually helped to fuel the rally to the upside. Traders have positioned aggressively for more downside, were eventually forced to buy back those short positions as the market moved against them, adding more buying pressure to an already really strong reversal. So heading into the end of the week, I'm watching whether the momentum can sustain itself and push higher or whether we finally see a short term pullback after such a large move.
Remy: Yes, and I do want to zoom in on a few names here in pre-market trade. Errol. We are looking at Netflix shares lower and this does come as Wells Fargo issued a sell rating for the streaming giant and has been citing worrying engagement trends and of course we're paying. to Berkshire Hathaway in for Friday morning pre-market trade and this does come as Warren Buffett at the age of 96 is officially stepping down as chairman. So how are investors there positioning ahead of the trading day?
Errol Coleman: Yeah, you know, we'll start with Netflix. I mean with Netflix, I think the bigger story behind the Wells Fargo downgrade is engagement. They're essentially questioning whether Netflix can maintain the level of viewer engagement needed to justify its current valuation, especially with, especially with what they see as a weaker content slate. In the second half of the year, and if you look at the options market right now, Netflix is trading at roughly at 34% implied volatility, which translates to about a $5 expected move over the next 28 days. But the data I'm really watching is October 20th because Netflix reports earnings and that's going to be the next real test of how traders and investors feel about the company because now Netflix has an opportunity to either validate some of these concerns around engagement or give the market a reason to rethink them and for Warren Buffett, I mean 96 years old, he's had such an amazing career, we can't doubt that. I mean. I think this is obviously the end of an era, but from a market perspective, this has been a transition Berkshire has prepared investors for. Greg Abel, Greg Abel is already running. Um, is already kind of running, you know, the show over there, and Howard Buffett is taking over as chairman and Warren will remain involved as chairman and a director. So now the interesting part for investors is seeing how much of the discipline and culture that made Berkshire so successful under Buffett carries over into the next generation of leadership. But I mean what a legendary career. Shout out to Warren Buffett.
Remy: Yes, indeed, quite the succession story there when it comes to Berkshire Hathaway. So Errol, I appreciate your time. Thank you so much for joining us on this Friday morning.
Errol Coleman: Thanks, Remy.
