OptionEye - Macro Outlook - Dec. 26th

[ShelladyOptions]

Good morning.

Stocks continue their move higher this morning with the S & P up about 3 points here in early, quiet trade.

The 10 year yield is at 2.24% suggesting that there could be a rate hike next year begween April and July. I don't think it will happen but I am pretty much on an island in that thought. 

Gold is up this morning on short covering and sits at $1193.77 up $19.76. 

Oil has also quieted down and is up .48 cents to $56.32. 

Grains were closed overnight. 

Economic news is thin this morning and the dollar is a little stronger at 89.97 up .13.

[ShelladyOptions]

Soybeans posting some decent gains on a VERY slow mid morning trade. Options volumes have been almost non existent as the futures squeeze higher. 

Most older traders will say it is bad to get short a quiet market and this is certainly turning out to be one of those days. With a decent start to the morning, weak shorts have hurt themselves as they rush to get out before the weekend.

The same can be said in corn as wheat takes a break from its run higher. 

All in all a very quiet trading session in Chicago. 

[Palouser]

Due to falling wages and a decling middle class economic growth through domestic consumption is unlikely to occur in my mind.

http://www.bbc.com/news/business-30603313