July 19. Gold above $1600.
July 19. Gold above $1600. “Gold hasn’t had this good a run since Jimmy Carter was in office…” (Fark.com). IBM results helped stocks rebound. Apple, which has now become the ultimate safe haven trade, reports this afternoon. I believe I saw Goldman touting the idea of buying AAPL calls in anticipation of results.
–Ten year yield nearly unchanged at 2.91, but bonds rose 4 bps to 4.29%. Red/green pack spread edged to a new recent low at 87 bps. Still plenty of buying in Green Dec calls.
–Bank stocks were weak, with BofA, MS, JPM all making new lows for the move (though erasing large portion of the losses at the end of the day). Over the past few years, banks have cut credit lines, culled bad loans, enjoyed zero funding costs in a relatively steep curve. One would have to imagine that three years into the crisis that banks are much better off…could new problems arise from the banking sector due to european contagion?
