04-24-2013 06:56 AM
Yesterday's action with the twitter hacking was a stark reminder of how skittish the world has become and how overrun with algorithmic computer programs our business has become.
Corn unchanged to slightly easier. Wheat is down 3 and soybeans are the darling this morning, up 4 in the front.
Gold holding in there at $1421 which is up about $8.00 and oil is up .42 cents.
The 10 year yield has climbed to 1.716% and the Euro is still stuck at 1.30.
The weather here is terrible and we have entered the wettest April since records began for Chicago. It doesn't help that the temperatures have been cold as well. Where oh where is the sun?!
I can't stress how bearish the trade has become. Really only hearing about put buyers and put spread buyers. The trade de jour is the Dec 5.00/4.50 put spread being purchased every day by someone new. Funny how the crop isn't even in the ground yet and these people say we have a bin buster. I guess that is what you get when you spray computer screens far and wide in the search for volume. Better be careful what you wish for.
Go get 'em.
04-24-2013 07:07 AM - edited 04-24-2013 07:08 AM
So Scott...what would be a good option way to play the other side of computer driven bearishness right now.
Say for a 3 week swing back to neutral psychology and thus neutral computer screens. TIA
04-24-2013 07:15 AM
In the equity world, you could leave resting bids for call options way underneath the market or buy the VIX index ourtright. I am amazed that the move is all we talk about. There had to be some bloody stories on that move yesterday. UGLY. Not good for the market AT ALL.
04-24-2013 08:54 AM - edited 04-24-2013 08:59 AM
04-24-2013 07:12 PM
You guys just explained the the futures traders reality--------------------- "There doesn't have to be a bumper crop or even the chance of a bumper crop--------- all you need is the suggestion of a bumper crop, and you can smell it as far away as USDA."