Archive for the ‘Eurodollar Options’ Category
Fed support now unlimited
March 24, 2020 –The Fed removed any guise of the illusion that it only would accept top-rated collateral, and has even taken the step to create a special purpose vehicle to support buying anything it feels the need to, while Congress remains on the verge of passing a $2 trillion stimulus bill. This morning, markets […]
Just another manic Monday
March 23, 2020 –Stocks have fought back and are off the -5% limit as of this writing, with initial selling pressure the result of more bad virus news and congressional wrangling prior to passing a big emergency rescue package. EDJ0 (April 3-month euro$) is currently down 8 bps at 9906, or 94 bps, with tremendous […]
Going to the Mattresses
March 22, 2020 – Weekly Comment Everything you really need to know is in The Godfather. Mostly you just need Clemenza. Michael: How bad do you think it’s gonna be? Clemenza: Pretty goddamned bad. Probably all the other Families will line up against us. That’s all right. These things gotta happen every five years or so, ten years. Helps to get rid […]
Paper
March 20, 2020 –One of the big catalysts sending stocks lower was the oil war announcement on the weekend preceding the March 9 open. Yesterday CLK0 settled 25.91, up 5.08 on the day and it’s building on gains this morning, as there is some chatter of a Russia/Saudi agreement to scale back production. Even Aussie$ […]
I’m going off the rails on a crazy train – Ozzy
March 19, 2020 –Stocks puked after Ackman got on CNBC with a long alarmist interview. I later read that Gundlach covered the last of his stock shorts yesterday. Thanks Bill. Decent bounce into the close. ESM low yesterday 2262.00 but settled 143.75 higher than that at 2405.75. –One program after another being rolled out to save […]
PAWNBROKER: Man, that watch is so hot, it’s smokin’
March 18. 2020 –Everything is melting down this morning as the Fed is about to become the biggest pawnbroker in the world. They are about to take any collateral at all and turn it into cash for immediate use, including Aunt Bertha’s needlepoint chair. I was looking at the ultra-bond chart yesterday and it reminded […]
Lower Bound
March 17, 2020 –DJIA was down 13% yesterday, with accelerated sales after Trump advised that disruptions could go on until August. SPX fell 12%, with the total loss from the Feb high of 3393 at 30%. Yields fell significantly after the Fed’s Sunday night cut to ZIRP, with tens down 23 bps to 0.718% but […]
A soothsayer bids you beware the ides of March
15-March 2020, Weekly comment Now let it work. Mischief, thou art afoot, Take thou what course thou wilt! -Mark Antony I just couldn’t help myself in using Julius Caesar in this week’s note as markets have endured three and thirty wounds in the past week. I know, not particularly original. While stocks staged a spirited […]
Quite a week
March 13, 2020 –DJIA fell almost exactly 10% yesterday, with SPX -9.5 and Nasdaq -9.4%. Comparisons were made to 1987, as this was the largest one-day sell off since then. Let me just mention a couple of other things from 1987. At that time, the FF rate was 7.25%. In October 1987, Greenspan cut 50 […]
Dominoes
March 12, 2020 –A Bloomberg headline says it all: ‘Trump’s error-laden foreign virus speech has investors spooked’. Travel between US and the EU will be curbed. Companies are tapping credit lines to stay afloat. CME will close trading floor at the end of Friday. NBA suspends season. Stocks are at new lows this morning. –Yesterday’s […]
