Oct 24. Nothing is over until we decide it is

–A spirited rally off yesterday’s lows in stocks had some feeling as if the danger had passed, but this morning ESZ is again lower, and large earnings reports are yet to be released (MSFT and AMD after the bell today,  AMZN and GOOGL tomorrow).  Rate futures well supported by yesterday’s weakness in stocks, though final settles were well off the highs.  Large (new position) trades included +150k TYZ 120/121 call spread for 5 (3s, OI +111k and 80k) and +80k 0EZ8 9700/9737 call spread for 2.5-2.75 (2.0s OI +67 and 48k).  There was early buying of TYX8 119c for 1-4, settled 2 vs 118-08+ with settlement this Friday.
–Weak europe PMI has the euro testing new lows this morning at 1.1413.  Crude oil crushed yesterday with CLZ down over $3/bbl late to 66.30 and no recovery this morning.  Trump stepping up attacks on A) migrant caravans B ) China C) Powell D) All of the above.  Trick question, the answer is always D.  Reminds me of when I went to take my membership test at the CME many years ago.  A tense classroom as the tests were handed out.   Multiple choice.  Within about 3 minutes, one potential member says, I don’t exactly understand question number 3.  The instructor whose name escapes me at this minute just says, “B, the answer is B.”  Next classmate, “And what does question 5 mean by bidding outside of the market?”  “The answer to 5 is C”.  And so that test went….memberships for everyone!  Well here’s another easy test question.  “Want to see the curve steepen wildly?”  Answer, “Fire Powell.”
–Late start today as I fully expected to take the day off due to winning the Mega Million lottery.  Back to trading pork bellies.
–Kindly featured in latest TheMacroTourist.com blog.  www.themacrotourist.com
Posted on October 24, 2018 at 5:31 am by alexmanzara · Permalink
In: Eurodollar Options

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