Could we be in some sort of
hellish maddening race – worldwide to see who can devalue the fastest.
Countries from Vietnam to the United States are currently engaged explicitly in
the case of Vietnam – a bit less so with the Bernanke “brainchild” of QE , in
trying to spur growth by making the currencies more competitive.
In the case of Ben I’m not
totally sure that he is sure of what the possible unintended consequences of
his QE policies are. Some economists seem to have no concern what so ever about
creating more and more money. Since a number of them have never done any
physical work what so ever, but merely sat and articulated theory one could see
how such a cavalier attitude could be so entrenched. I say give these Charlatans
a healthy dose of reality so they can get a true feeling for what human horse
power is all about and how true effort must be expended in order to get
results. These limp wristed ninny’s might then suggest what is now the un-suggestable.
Below are some of the trades
permeating the pits in Chicago – looks like the trader going through vision
needs to make some cash – just not sure which way the big move is coming. Trend
clearly has been up prior to June in Fixed income. Commodities have backed off
lead by oil so no inhibitor there for the moment.
BTW take note of the large
call fly seller – net - net they are getting long 100K of the TYV 126.5 – 127.5
call spreads after today’s trade. If you look back here you will see the
initial trade http://financialfutures.typepad.com/kiss/2010/08/treasury-trading-update-2.html. BTW if you cannot paste this link just scroll back to the 8/4/10 post and you will get there.
| 8/25/2010 | |||||
| Screen this a.m.: | |||||
| edv0 93/95/96 p-tree trades .25, 500 | |||||
| edv0 91/93 p/s trades 2/1000, 2.25/3500 | |||||
| edu0 96p trades 2.25, 1000 | |||||
| edu0 93/95/96 put fly trades 1, 1650 | |||||
| edz0 97/98 c/s trades 1.25, 1750 | |||||
| Locals | B/S | 500 | EDZ090/92 p spread | 1.75 | 9955 |
| Paper | B | 1,000 | EDV 9975c | 0.5 | 9954 area |
| Paper | B | 1,000 | EOZ 9925c | 9.5 | 9917.5 area |
| Paper | B | 1,000 | EDU 9950 p | 1.25 | N/A |
| Paper | B | 10,000 | EDV92/95 psprd vs. EDV96c | .5 psprd | N/A |
| Paper | S | 1,000 | EDH185/95 p 1X3 | 3 | ^9950 12% |
| Adv. | B | 1,000 | EDZ93/95 p spread | 2.5 | N/A |
| Paper | B | 2,000 | EDU0/EDV097 c spread | .25 (cab) oct | N/A |
| Paper | B | 5,000 | EDZ093/96 p spread | 6.5 | N/A |
| Paper | B | 2,500 | EDZ090/92/95 p fly | 2.25 | N/A |
| Man | S | 5,000 | EDH1 96 c | 6 | ^9948.5 20% |
| Man | S | 2,000 | EDU09950 p | 1.25 | 9966 |
| Paper | B | 5,000 | EDX91/93 p spread | 2.5 | 9954/54.5 |
| Paper | B | 2,000 | EDV88/95 p 1X2 | 4.25 and 4 | N/A |
| Merril | B | 2,000 | EDZ92/95 p sprea | 4.5 | N/A |
| straddles: | |||||
| edu0 9962 8.5/9.25 f=9966 | |||||
| edv0 9950 16.5/17.5 | |||||
| edx0 9950 18/19 shorts | |||||
| edZ0 9950 23.5/24.5 f=9954 EOU 9937 12.5/13.5 | |||||
| edH1 9950 29.5/30.5 f=9949 EOV 9912 20.5/21.5 | |||||
| edM1 9937 39/40 f=9941.5 EOX 9912 25.5/26 | |||||
| EOZ 9912 29.5/30.5 | |||||
| reds EOH 9900 45/46 | |||||
| edU1 9937 44.5/45.5 f 9931 EOM 9887 58.5/59.5 | |||||
| edz1 9912 60/61 f=9917 | |||||
| edH2 9900 70/71 f=9902.5 | |||||
| edM2 9887 80/81 f=9887.5 | |||||
| Calendars | |||||
| 2yr | |||||
| Barclays | S | 1,000 | TUU/Z | 4.2 | |
| Citi | S | 3,000 | TUU/Z | 4.2 | |
| 5yr. | |||||
| Greenwich | B | 4,770 | FVU/Z | 23.7 | |
| 5yr. | |||||
| Greenwich | B | ||||
| 10yr. | |||||
| Greenwich | S | 2,700 | TYU/Z | 26 | |
| 30yr. | |||||
| Citi | S | 5,000 | USU/Z | 43.7 | |
| 10yr. Options | |||||
| Paper | B | 2,000 | TYU127c | 14 | ^12520 34% |
| Barclays | B | 2,000 | TYZ127.5/129.5 c spread | 0.34 | 12623/23.5 |
| Paper | S | 500 | TYV124 put | 0.47 | ^12524.5 |
| Barclays | B | 4,000 | TYZ127.5/129.5 c spread | .35 and .36 | up to 12626 |
| Paper | B | 3,000 | TYU127c | 0.16 | ^12520 |
| Note above trade vs. same futures level - up tick in vol | |||||
| TJM | B | 6,000 | 127.5/128.5/129 c fly | ,10 abd ,09 | 12624 to 21.5 |
| Paper | S | 2,000 | 125.5/126 c stupid | 1.61 | ^126'20 |
| Paper | S | 40,000 | TYV125.5/126.5/127.5 c fly | 0.09 | 12614/16.5 |
| Still executing will probably do 50K when done - relates to trade from the 4th | |||||
| 5yr. Option | |||||
| Paper | B | 2,200 | FVZ120c | 1.12 | 12104/05 |
| 30yr. Options | |||||
| Vision | B | 3,000 | USV 139 calls | .62 and .63 | 13504 |
| Vision | B | 1,500 | USU 135 calls | 1.49 | 13617/18 |
| Vision | B | 3,000 | USV 127 puts | .17 and .18 | 13616 to 11 |
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