Archive for the ‘Eurodollar Options’ Category
July 20. Stocks at new highs; nothing else to worry about
–Stocks making new highs this morning. Must be because we can now drop ‘presumptive’ and say that Trump is the official nominee. So, I guess that’s good, as VIX fell below 12 yesterday, lower than any level since prior to last August when the Chinese devalued. It’s not as though we can expect another shock […]
July 19. It’s a Cadillac
–I almost missed a window of opportunity regarding the situation in Turkey. On a slow day some time ago, (like yesterday), a euro$ options pit broker who shall go unnamed, is standing around in the crowded pit doing the crossword puzzle. Clue: COUP D’_ _ _ _ Subject’s answer: VILL. See? The floor is […]
July 18. I don’t know, I think it’s C-O-O
–In the new world of the 20 minute news cycle, Turkey had a coup on Friday, now forgotten as it failed. In an amusing sidenote cited by the Daily Shot, google searches for “coup” jumped on Friday, but so did searches for “coo”. That’s right kids….sound it out. In the US there was another deadly […]
July 17. Men Walk on Moon
On Friday, we had clipped a headline from Bloomberg and forwarded it; it was something about Atlanta Fed’s Lockhart (“Don’t count on quick return to ‘normal’”). In response, we instantly received a return post from a client, a link from the NY Times, with the 1969 image of the front page headline, “Men Walk on […]
July 15. Attack in France
–Another horrific attack in France. The potential for these assaults on western values and innocent lives is only growing. Today in the US for example, Day of Rage protests (though not targeted at western values) are scheduled across the country, with this headline in the Washington Post, “Military told to avoid 37 US cities for […]
July 14. BoE decision awaited…
–US stock index futures are soaring to new highs as the Bank of England’s (ease) decision is awaited. Yesterday’s bond rally is being partially reversed as a result. The $2 plunge in oil yesterday to two month lows (high inventories) is also seeing a modest reversal, with CLQ up 50 cents this morning. –Heavy trade […]
Renzi channels Clapton. “Before you accuse me, take a look at yourself”
Let’s start by taking a look at some ten year yield levels, and changes ytd (in red): 12/31/2015 7/9/2016 US 227.5 136.3 91.2 GERMANY 62.9 -18.9 81.8 FRANCE 98.8 10.3 88.5 SPAIN 177.0 114.7 62.3 UK 196.0 73.5 122.5 NETH 79.3 0.0 79.3 This is just representative. I only included the Netherlands because on Friday, […]
July 8. Civil unrest
–Today it’s about the employment report. But the shooting of Dallas police officers with 5 dead is a much larger event for the country and perhaps for the markets as well. Even prior to this event, Martin Armstrong posted this: “The Federal government is arming every agency from the IRS to the State Department for […]
July 7. Horizon looks clear
–Byron Wien of Blackstone was on CNBC yesterday saying that he didn’t see recession on the horizon because the curve isn’t inverted. It may not be inverted, but it flattens every day. New low again in 2/10 to just 80 bps and 5/30 fell over a bp to a new low of 119. About […]
July 6. Now youse can’t leave
–US curve flattening like a pancake. All near euro$ calendar spreads made new lows. The lowest three month spread is now Dec’16/March’17 which settled at 1.5. Back in the days where there used to be a “turn of the year effect” it wasn’t uncommon to see Dec/March go negative. Just for old times sake I […]
