March 20. “To the celestial and my soul’s idol, the most beautified Ophelia”

Which means that the people who own the pork belly contracts are saying, “Hey, we’re losing all our damn money, and Christmas is around the corner, and I ain’t gonna have no money to buy my son the G.I. Joe with the kung-fu grip! And my wife ain’t gonna f… my wife ain’t gonna make love to me if I got no money!” So they’re panicking right now, they’re screaming “SELL! SELL!” to get out before the price keeps dropping. They panickin out there right now, I can feel it.

-Billy Ray Valentine

and that’s Ophelia in the middle


Solar eclipse, supermoon, spring equinox: Friday will see three rare celestial events

–The curve flattened as heavy selling occurred in the front eurodollar contracts.  2/10 treasury spread edged to a new recent low of 136 as the two yr yield jumped 5.3 bps while tens only rose 3.2 to 197.4.  Open interest in the euro$ complex surged 231k (prelim) with almost all of that in the front 4 contracts.  June 2015 open interest was up 100k alone.  However, all of the near put open interest declined massively.  EDM puts -112k, EDU5 -87k, EDZ5 -46k.  In just looking at OI, it’s almost as if the heavy outright futures selling spurred put shorts to cover.
–New low as well in red/green (2nd to 3rd year), euro$ pack spread which slipped 0.75 bp to 55.75.  Yesterday’s market message is, “If you tighten now, you can’t tighten later.” Today’s message of course, is pre-ordained by the celestial events noted above.  And it’s quadruple witching day.
–Commodities continue to trade at or near new lows.  Sugar, orange juice, hogs, pork bellies, oil.  The plunge in sugar has been linked with that of the Brazilian real which continues apace to new lows ($/real over 3.30 this morning).   Hogs have lost about 25% since the beginning of the year.


Posted on March 20, 2015 at 5:31 am by alexmanzara · Permalink
In: Eurodollar Options

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