Nov 2. Midterm elections

Nov 2.  Fairly quiet Monday.  ISM was stronger than expected, but below the surface news continues to be disquieting.  In terms of the financial infrastructure, there were reports the SEC is investigating JPM in a subprime deal with Magnetar.  FHFA is investigating First Horizon (FHN) which fell over 7% on the news. Ambac missed an interest payment and is poised for bankruptcy. Financials were generally weak, with cracks again showing and threatening to break open.
–Additionally, Unemployment offices in Indiana are doing some hiring of their own, of armed security guards as the state anticipates the expiration of benefits for 99ers (those who have been drawing unemployment checks for nearly 2 years).  [Spokesman] “Lotter said the agency is merely being cautious with the approach of an early-December deadline when thousands of Indiana residents could see their unemployment benefits end after exhausting the maximum 99 weeks provided through multiple federal extension periods.”Given the upcoming expiration of the federal extensions and the increased stress on some of the unemployed, we thought added security would provide an extra level of protection for our employees and clients,” he said.
–Front end of the curve was soft, as volume jumped in EDH1, supposedly the result of a sale of about 70k contracts on screen.
–Midterm elections today!

Posted on November 1, 2010 at 6:56 pm by alexmanzara · Permalink
In: Eurodollar Options

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