Run for the Sidelines

–I don’t usually use sports analogies because they’re a bit cliche.  But here’s a guy that saw danger spilling over the sidelines and took spectacularly evasive action, and came out standing.   Let’s hope their are a few ‘wealth managers’ that are as nimble.
Georgia Coach Jumping & Hovering In Air Over Sideline Play Is Not Of This Earth, here’s video…

–China’s stocks continue to face selling pressure, and the spillover is affecting other markets.  Copper down 7 cents this morning.  Aussie dollar topped in September and it’s been going down ever since (interesting note on ZH about stretched housing metrics and loads of debt).  Crude oil pulled back from the highs yesterday and is lower this morning.  Dollar index saw a small rally yesterday.

–Powell has a confirmation hearing this morning.  Text of opening remarks were released late yesterday.  More of the same.  I had high hopes the Fed might do away with the ‘dot-plot’ but Powell appears to be concerned about protecting the Fed’s independence and thus wants to communicate with even more transparency.  TRANSPARENCY.  Overrated.

–Some measures of curve at new lows. Red/gold ED pack spread new low at 33.25 (-1.0 on day).  2/10 at 58.6.  These are decade lows.  Red/green ED pack spread closed just 12.875.  1/8% for forward one-year spreads should be a concern to the Fed.

–Junk bond etf’s saw renewed outflows.  After the Fed hike in December these guys are going to come barrelling towards the sidelines.

–7 year auction today.

Posted on November 28, 2017 at 5:36 am by alexmanzara · Permalink
In: Eurodollar Options

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