July 2. Baltic Dry Freight Index falling hard

July 2.  Huge moves.  Aug gold down $46.  Crude down $3.  EUR/USD was up three big figures.  Huge decline in dollar index.  Stocks lower early but came back strong. 
–Near eurodollars edged higher.  There was a seller of about 10k EDN 9837p from 4 to 3.5, which briefly caused EDU to go 9836 bid.  However, large moves in various markets are more indicative of forced positions and possible margin calls.  In many ways these moves are indicative of demand for liquidity…near eurodollars could see a sell off as demand for near term funding increases. 
–Today of course is the employment report.  NFP expected -110 k with Private Payrolls expected +100k. 
–A friend brought the drop in the Baltic Dry Freight index to my attention…down 42% since the end of May…not supportive for hopes of increased world trade where every country hopes to export their way out of economic problems.

Posted on July 31, 2010 at 8:42 am by alexmanzara · Permalink
In: Eurodollar Options

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