Fantasy Press Conference:
Q:Mr. Bernanke, just exactly how is the Federal Reserve chartered.
Bernanke: It is a privately held institution the shares are held by the biggest banks in the world.
Q: So you are beholding to these banks and no one else – is that correct.
Bernanke: Yes.
Q: So the policies currently in place are soley there to protect the big banks – is that
Correct?
Bernanke: Yes
Q: This country was founded as a democracy how did a private institution gain so much power without any regulation by the US government.
Bernanke: The most powerful people in the world Led by the Rothchilds, Warburgs, and Morgans, set it up so that they could control global enterprises essentially. Since they already controlled the banking systems in Europe it was only natural that they would employ the same strategy here.
Ok, enough of that. Perhaps these questions are not all that important anyway. Given this system is so large and a lot of those old banking names are large conglomerates with global share holder bases and are too entrenched that pointing fingers is tougher to do.
Point is make no mistake that the Feds number one purpose is to maintain the banking system – right or wrong – and when wrong – print money – which is a tax on you and me and we have no vote.
Floor trade starts out with Vol. a bit firmer in treasuries at the open. Large put structures being bought in Eurodollar options – probably just insurance as the Fed will have to address questions that will no doubt want to know what the upcoming end of QE II will mean to the markets and Fed Policy. Most likely long rates will remain low as the economy is still weak and people are still losing their homes and that problem would only worsen if rates were to start trending higher. Large strangle selling yesterday was noted and today looks to be a different more established strangle seller – you all know the name attached – is selling the July 117-121 strangle – see players list below. Over all market still trending higher and long position still warranted – for more on that feel free to call.
Currently 9:30 a.m. cst
5yr. note auction results out @ 10:30
Fed releases statement @ 11:30
Press Conference @ 1:15
Larger flows from a.m. session listed below.
| 4/27/2011 | |||||
| New Edge | B | 10,000 | EOK 9887p | 2.5 | 9907.5/08 |
| Paper | B | 2,000 | EDK 9962 p | 1.25 | 9969 area |
| Paper | B | 5,000 | EDH 86/87/92/93 p condor | 2.5 | 9934/34.5 |
| Goldman | B | 5,000 | EDZ93/95 p spread | 3 | 9951.5/52 |
| New Edge | B | 5,000 | EOK 9887p | 3 | 9906.5/07 |
| Paper | B | 1,500 | EDZ1 9900/9925 p spread | 3.5 | 9951/51.5 |
| Paper | B | 20,000 | EDZ90/91 p spread | 1.5 | 9951/51.5 |
| Paper | B/S | 750 | FFZ 9943/9950/9962 p fly | 0.25 | 9975.5/76 |
| Paper | B | 1,000 | EDH 9937 strad | 0.43 | 9934 |
| Fed Fund opts | |||||
| Paper | B/S | 750 | FFZ 9943/9950/9962 p fly | 0.25 | 9975.5/76 |
| Paper | B/S | 700 | FFK/M 9975/9981/9987 c fly stupid | 0.75 | 9989.5 area |
| Paper | B | 1,500 | FFZ 9981/9987 c spread | 3.25 | 9975.5/76 |
| 10yr. Opts | |||||
| Paper | S | 2,500 | TYM 120/121 c 1X2 | flat | 12013/13.5 |
| Paper | S | 2,500 | TYM 120/121 c 1X2 | 0.01 | 12013/13.5 |
| 1st leg off the open 2nd one 40 minutes into the session - vol. was up on open and ticked up more. | |||||
| JP Morg | B | 5,000 | TYM118.5/122 combo | .01 call over | ^12013 36% |
| RJO | S | 1,000 | TYU119/122.5 c 1X2 | 0.44 | ^11828 |
| New Edge | S | 1,500 | TYM120/121 c spread | 0.32 | 12013/14 |
| Icap | S | 500 | TYM120.5 strad | 1.33 and 1.32 | 12013/13.5 |
| RJO | S | 750 | TYM120.5 strad | 1.31 | 12012.5/13 |
| RJO | B | 1,900 | TYWk 5 (exp this fri) 120 p | 0.1 | ^12013.5 |
| Above 2 executed as a package by RJO - looks like the got an edge on the Straddle by buying the calls | |||||
| JP Morg | B | 1,500 | TYM117.5/118.5/119.5 p fly | 0.08 | 12013/13.5 |
| Adv | S | 1,500 | TYN 117/121 strangle | 0.61 | 12012.5/13 |
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