For lack of anything better to do – just looking at some micro moves on gold, oil and the dollar. As you can see 8:10 a.m. c.s.t. there was a little spike down on Gold and crude and the dollar moved up a bit. I will keep an eye on these and other commodities today to see if anything significant develops. The main take away is that these things do not hurt the chances for yields to move lower in the fixed income – intermediate to long end.
Seeing some themes continue to trade in ED options this a.m. Longer end seeing mostly bearish type flows in option trading with the exception of a covered combo trade. Prices have been struggling ever since mid session yesterday. Over the weekend the horrible situation on the muni bond market was brought out front and center. This combined with easing (for the moment) tensions between north and south Korea took some of the weekend bid out of treasuries. Market has not changed trend yet and the oversold reading on the weekly RSI still bears watching as still below key 30 level indicating oversold. Daily has moved to 38 and MACD looks to cross to up unless prices continue to sell off today.
| 12/21/2010 | |||||
| New Edge | B | 2,000 | EDH13 9862/9887/9900 brkn c fly | 2.5 | N/A |
| Paper | S | 1,000 | EOH9862/9912 strangles | 19 | N/A |
| TJM | B | 3,000 | EDM9962 c | 4.5 | N/A |
| Cube | B | 10,000 | EDH13 9900 c | 1 | 9804/04.5 |
| New Edge | B | 5,000 | EOH 9900/9912/9925 c tree | 3 | 9899.5/9900 |
| Been buying this 2.5 and 3 last couple of sessions | |||||
| Paper | B | 1,000 | EDH13 9700p vs sell 9875/9900 c sprd | 4 put over | 9804 area |
| TY | |||||
| Paper | S | 2,000 | TYH120.5 strad | 3.08 to 3.04 | ^12014 |
| Straddle was quoted 3.10/3.13 at the open this trade was done about 1/2 hr. into the session… | |||||
| Paper | S | 3,000 | TYG123.5/125 c spread | 0.07 | 1 |
| Morg. St | B | 1,000 | TYG119p | 0.19 | 12010.5/11 |
| New Edge | S | 500 | TYG120.5 strad | 2.11 | 12010/11 |
| Merril | B | 500 | TYG116p | 0.08 | 12011/11.5 |
| Smith B | S | 500 | TYF120.5/121.5 c spread | 0.13 | 12012/12.5 |
| Paper | B | 1,000 | TYF122p/TYH118 put diag. | 1.14 Jan over | 12009/10 |
| Paper | S | 500 | TYG/H 120.5 calendar spread | 0.57 | 12006/06.5 |
| Locals | B/S | 1,000 | TYH120/123 c spread | 1.11 | ^12007 |
| Paper | B | 500 | TYH123.5c | 0.23 | ^12008 |
| Merril | B | 1,000 | TYG119p | 0.38 | ^12008.5 and 09 |
| Paper | B | 4,000 | TYH119.5/120.5 combo call over | 0.17 | ^12010.5 |
| Paper | B | 1,000 | TYG116/118 p spread | 0.16 | 12007/07.5 |
Comments