Atomic number 46

–It would be wise to be long palladium, number 46 on the Periodic Table.  See what I did there?  Palladium is named after the Greek goddess of wisdom, Pallas.  And it’s  up over $50 this morning to  new high of 1458!  In early November, gold (GCJ) was about 1215/oz.  PAH (March Palladium) was 1075.  Now palladium is 1458 and gold is up $10.40 this morning to 1332.50, which is also a new high.  Mostly used for pollution control in catalytic converters, but I don’t know what’s driving this move.

–Rates are about steady and stocks edging a bit lower this morning.  Implied vol in rates was crushed at the end of last week.  Tomorrow sees the release of the FOMC minutes, and there is an article on Bloomberg indicating that ECB officials are getting increasingly nervous about deceleration in the EU.  The ECB releases its summary of January’s meeting on Thursday.  “The backdrop is a recession in Italy, stagnation in Germany, and a sharply changed outlook for the 19-nation euro area.”

–Praet said the ECB could change guidance if the outlook worsens; Kuroda said the BOJ could ease if a stronger yen hurts the price goal path; China is pledging more support for its bank perpetual bond swap scheme.  They out there panickin’.  I can feel it.

Posted on February 19, 2019 at 5:21 am by alexmanzara · Permalink
In: Eurodollar Options

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