Archive for the ‘Eurodollar Options’ Category
Bitcoin driving economic prosperity
June 28, 2019 –It was a pretty bland day yesterday unless you happened to be trading bitcoin. A parabolic rise in June took BTC from around 7500 in the beginning of the month to over 14000 Wednesday, only to crash 3000 yesterday to around 11000. After exhaustive research (feeding the data through our proprietary models) we’ve […]
Pot luck
June 27, 2019 –Bitcoin is once again providing an interesting roller-coaster side show, as it plunged $1800 late yesterday afternoon, rallied 1300 and is now down 2500! Gold is also down $10, and stocks have recovered from a later afternoon press. Rate futures are a bit lower, as the market continues to adjust to a […]
Give me some water
June 25, 2019 –It was June of 2007, exactly twelve years ago, when Bear Stearns was forced to inject capital into two of its funds loaded with mortgage ‘securities’ which had lost almost all of their value. These funds eventually failed, as did, of course, the firm. The bell was ringing at the top. But […]
Rhymes with delicious
June 24, 2019 –Bitcoin is up 10% this morning at 10935. Precious metals are higher, stocks are higher, bonds are higher, the dollar is weaker. Chicago Fed’s National Activity Index is out today. Last was -0.45, with the three month moving average at -0.32, the lowest since Q2 2016 when bond yields were making historic […]
Pernicious
June 23, 2019 – Weekly Comment Lawrence Lindsey was interviewed on CNBC by Kelly Evans on Friday. He said a couple of things that strike at the heart of monetary policy. One interesting quote: most people don’t want inflation; central banks want it “because if you have a little higher inflation then you have a […]
Stocks at new highs, because of front loaded eases?
June 21, 2019 –Rates continued to drop with tens down 2.4 bps to end just under 2% at 1.999%. The treasury curve steepened with both 2/10 and 5/30 making slight new highs at 27.3 and 79 bps respectively. Precious metals soared with Dec Gold up $48/oz to 1408, though there is small profit taking this […]
When doves fly
June 20, 2019 –Easily the most bullish reaction I’ve ever seen to a non-ease, as Powell said the case for accommodation has strengthened in light of global risks and lower market measures of inflation. He said that near the effective lower bound, an ounce of prevention might be worth a pound of cure. I had […]
FOMC day
June 19, 2019 –FOMC announcement today. No change expected in FF target. The last three statements said “In light of global economic and financial developments and muted inflation pressures, the Committee will be patient…” That language will, of course change, as the market has strongly signaled the need for lower funding costs. In the March […]
…Additional Stimulus Will Be Required
June 18, 2019 –Draghi this morning said risks are tilted to the downside and that additional stimulus may be required. New low German bund -28 bps. Treasuries at or near new highs this morning. Stocks higher. Tomorrow it’s Powell’s turn to sweet talk the market – without cutting rates. There is some talk that the […]
I’ll give you a tenth of a bitcoin per acre of corn – IF you can deliver
June 17, 2019 –Middle of June and it’s just 56 degrees in Chicago as cool damp weather persists. Reuters ran an article this morning about farmers in Illinois lamenting the lost corn crop, noting that one farmer planted only 900 of 8500 acres. Dec Corn is up 8 1/2 cents this morning to a new […]
