April 22. Grand Cardinal Cross
–Quiet Monday in a week where economic news is sparse. Treasury auctions begin with today’s 2yr, followed by 5’s and 7’s.
–Red/green pack spread edged to a slight new high at 117. Peak one year euro$ calendar spread is EDU5/EDU6 at 121.5, up 0.5 yesterday, pushed out due to a 40k Short Sept/Green Sept put spread spread: SOLD 0EU 9887/9862ps (3.0s) vs BOT 2EU 9775/9750ps (6.5s). Difference between top strikes is 112.5, but green side is still 23.5 out of the money. Trade was done mostly as blocks. I think this might be the first time that more euro$ options traded as blocks than in the pit, with 210k total blocked.
–The other large trade is a recurring theme in tens, a sale of 3 point wide strangles. Yesterday it was the July 121.5/124.5 strangle sold in 10k from 47 to 44. Ten year implied fell 0.2 to 4.5.
–Chinese yuan at or near new low for the year near 6.24. There is a steady drumbeat of coverage on zerohedge about Chinese commodity financing deals going sour as Letters of Credit become much more difficult to obtain. A friend who was just in China visiting factories for samples reported that business has visibly slowed over the past year.
–Interesting astrological note…”Between April 20th through April 23rd, there are four days of supreme astrological intensity. They are bookended by the Full Lunar Eclipse, just passed on the 15th, and an Annular Solar Eclipse on the 29th.”…Essentially, on 23 April, Pluto will be 180 degrees, [opposite] from Jupiter, and Mars will be 180 degrees from Uranus. All will be in the 13th degree of their respective Sun signs, forming a cross shape, thus the Cardinal Grand Cross. As the term implies, “opposition,” usually entails a major polarizing effect.
http://www.marketoracle.co.uk/Article45279.html
http://www.transients.info/2014/04/examining-2014-april-grand-cardinal.html
