April 29. Le deluge

Tennessee Williams: Mendacity is a system that we live in. Liquor is one way out and death’s the other.
–I suppose I should write about large euro$ option trades from yesterday, the buy of 100k EDZ 9900/9925/9950p fly for 2.0 or the sale of 100+k EDH2 9937/9950c spd for 8 (new position).  And while those trades are sort of interesting, as is the drop in US yields and dollar apres Bernanke, I can’t help thinking about the contrast of pomp surrounding the royal wedding in England with the medacity of US news stories.  For example, McDonald’s just hired 62000 people…but they had a MILLION applicants. The US chairman of Walmart says that their customers are running out of money earlier in the month than previously as gasoline prices sap purchasing power– that end of month sales are fading as customers await paychecks or gov’t transfers.  Another story mentions that more people have exhausted the 99 weeks of unemployment benefits.  It’s a Tale of Two Cities on a global scale. Will Rogers said during the Great Depression that “money was all appropriated for the top in hopes that it would trickle down to the needy.” (Wikipedia)  The difference in the current case is that it’s a slower trickle.  And it makes me think of a line from Old Farmer’s Advice: “Do not corner something that you know is meaner than you.”
–Dollar is making new lows vs Swiss and Yuan which is now near 6.5. News today includes Personal Income and Spending +0.3 and +0.5.  Chicago PMI expected 68 from 70.6 last.

–4 non blondes: And so I wake in the morning and I step outside/And I take a deep breath and I get real high/And I scream from the top of my lungs/What’s goin’ on?



Posted on April 29, 2011 at 5:30 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply