A couple of positives which include heavy buy back schedule this week plus tomorrows month end extension on the bond indexes. Treasury prices did move higher up until just before the buy back operation commenced. Since then there has been a decent pull back. Over all the curve has flattened a bit but some of that has dissipated as well.
Seeing good call buying in both Eurodollar options and treasury options this a.m. Price action has turned sideways, however momentum on the daily charts remains down currently.
I do not, nor does anyone else for that matter know where all this QE will lead. Over the weekend however I did listen to an interesting interview with Anatole Kaletsky. http://www.financialsense.com/financial-sense-newshour/in-depth/anatole-kaletsky/capitalism-4-0I
I think he is right in that a "mega expansion" of monetary policy globally by the western economies is what lies ahead and is probably the only option. Given that, and the belief by our current monetary leaders that they do have the tools to expand and contract capital via treasury purchases, more aggressive purchases may well be coming.
More later. Larger trades from this a.m. listed below.
| 11/29/1930 | |||||
| TJM | S | 2,000 | EDJ 9912.5p | 2.7 | N/A |
| New Edge | B | 3,000 | EDH 9950/9962.5 c 1X2 | 3 | 9949 area |
| Paper | S | 5,000 | EDH 9925 put | 8 | N/A |
| New Edge | B | 15,000 | EDZ1 93/96c1X2 | 9 | 9917.5/18 |
| Paper | B | 250 | EDM1 9937.5/9950 strad stupid | 70 | N/A |
| CCM | B | 10,000 | EDM1 9962/9975 c spread | 3.5 | N/A |
| Paper | B | 5,000 | EOZ 9925 c | 4 | 9918.18.5 |
| 10yr. | |||||
| CCM | B | 10,000 | TYF126 calls | .21 to .23 | 12426 to 28 |
| UBS | B | 5,000 | TYF122/123.5 p spread | 0.32 | N/A |
| CCM | B | 10,000 | TYF126 calls | .22 and .23 | 12424 area |
| Paper | B | 500 | TYG125.5/126.5/127.5 c tree | 0.01 | 12427/27.5 |
| CCM | S | 600 | TYF 124 strad | 2.13 to 2.12 | 12426/27 |
| Paper | B | 1,000 | TYF119.5/120/121 p fly | 0.06 | 12425/26 |
| Paper | B | 2,500 | TYG128c/12H122 put diagnol | 0.52 | ^12328 |
| RJO | S | 500 | TYF124 strad | 2.12 | ^12328 |
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