Derivatives Trading Legend: “As Little As A 4% Decline In One Day Could Start A Critical Crash”
After building out Merrill’s mortgage trading floor basically from scratch, then moving to the buyside at Pimco, several weeks ago Harley Bassman, more familiar to many traders as the “Convexity Maven” – a legend in the realm of derivatives (he helped design the MOVE Index, better known as the VIX for government bonds) – decided to […]
WTI Crude Oil And Natural Gas Forecast – Wednesday, July 12
WTI Crude Oil The WTI Crude Oil market initially fell during the day on Tuesday but turned around to form a very bullish sign. The market broke above the $45 level, and it looks likely that we will continue to reach a little bit higher, but quite frankly with the Crude Oil Inventories announcement coming […]
Indian Indices Trade On A Flat Note; Energy Stocks Witness Buying
Share markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the energy sector and telecom sector witnessing maximum buying interest. IT stocks are trading in the red. The BSE Sensex is trading up 31 points (up 0.1%) and the NSE Nifty is trading up by 16 points (up 0.2%). The BSE Mid Cap index is trading up by […]
Arm’s-Length International Trade
“Global value chains often involve numerous cross-border operations, conducted either `intra-firm,’ that is, between firms related through ownership or control, or between unaffiliated firms at `arm’s-length.'” The World Bank explains this difference in “Arm’s-Length Trade: A Source of Post-Crisis Trade Weakness,” which appears as a “Special Focus” chapter in Global Economic Prospects: A Fragile Recovery (June 2017). […]
U.S. Oil Exports Reduce Trade Deficit With China
There’s a really exciting story developing in the international trade between the United States and China, two of the world’s largest trading partners. Here, the legalization of oil exports in 2016 from the United States has subsequently led to a rather dramatic surge in exports of petroleum products from the U.S. to China in 2017. China imported nearly 100,000 barrels […]
‘Questioning Your Religion’: Crude Surges On API Data, Underscoring Manic Market
Somebody asked me earlier if this, out earlier today from Goldman, was a contrarian indicator: Given the recent rebound in net speculative length from its 18-month lows, we believe, however, that a failure for these shifts to materialize soon could push prices below $40/bbl as the market tests OPEC’s and shale’s reaction functions. The answer, at least for […]
Oil Prices Continue Higher
Oil prices extended their gains at the start of Wednesday’s Asian session after the U.S. government slashed its crude production expectations for next year and fuel inventories declined. U.S. WTI futures were up 1.58 percent at 10:30 a.m. HK/SIN, trading at $45.75 per barrel. Brent crude futures were up 1.33 percent to $48.15 per barrel.These […]
Connecticut Capital Hartford Downgraded To Junk By S&P
One week ago, Illinois passed its three year-overdue budget in hopes of avoiding a downgrade to junk status, however in an unexpected twist, Moody’s said that it may still downgrade the near-insolvent state, regardless of the so-called budget “deal.” In fact, a downgrade of Illinois may come at any moment, making it the first U.S. state […]
Gold Edges Higher Ahead Of Yellen Testimony
Gold prices rose yesterday, edging further away from a 4-month low struck earlier this week, as the dollar weakened ahead of an appearance by Federal Reserve chair Janet Yellen in front of a congressional committee. Despite the negative outlook, daily charts show a short-term bottoming out above the $1208-$1205 area. XAU/USD is trading above the […]
USD: Fed Yellen’s Testimony On 3 Topics To Look For – BofAML
After the troubles of Trump Junior downed the dollar, the next test is Yellen’s testimony. Here is a preview: Here is their view, courtesy of eFXnews: Fed Chair Yellen will be testifying in front of the House Financial Services Committee on Wednesday and Senate Banking Committee on Thursday. Her prepared remarks will be released at 8:30 […]
