June 16. Stocks tumbled as turmoil and riots related to Greek debt talks overwhelmed other factors.

June 16.  Stocks tumbled as turmoil and riots related to Greek debt talks overwhelmed other factors.  Econ data in the US continues to disappoint, with Empire State expected 12, actual -7.79 and Industrial Production and Capacity slightly weaker than expected.  Home builder confidence fell.  The euro sank (down 280 late), dollar strengthened.  August Crude oil was down 426 late in the day to 95.60, lowest level since February.  Front end eurodollars reflected concerns about banking problems and a possible cash crunch, with Barclays warning of problems. There was a LARGE amount of front end put and put spread buying.  EDU1 settled  DOWN 5.5 on the day at 9961.5, while EDU2 was  UP 5.5 at 9927.5.  A drop of 11 bps in that one-year spread!  The ten year note fell 13 bps to close sub 3% at 2.97.  The buyer of 60k TYQ 126/127c spd Tuesday at 5 and 6 nearly doubled his money…9/11 at end of day yesterday.

–This time the Federal Reserve may be handcuffed in deploying “emergency” measures, especially having come under withering criticism of aiding non-US bank Dexia last time. There is little public support in terms of helping the banks these days, unless by help one means the gallows. A lot of tech stocks had new low closes for the year.  HPQ, CSCO, YHOO, GOOG, MSFT, TXN,. AAPL near year’s low.

–Today’s news includes Job Claims exp 420k.  Housing Starts…doesn’t matter, Philly Fed expected 7.0 from 3.9.

Posted on June 16, 2011 at 12:09 pm by alexmanzara · Permalink
In: Eurodollar Options

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