Supply and Demand 1 December

Let’s consider speculation and arbitrage, and look at what it really means when the cobasis is deeply negative, in that light. This is the case in silver. Per the definition of cobasis = Spot(bid) – Future(ask), it means either that physical metal … [...]

Supply and Demand 1 December

Let’s consider speculation and arbitrage, and look at what it really means when the cobasis is deeply negative, in that light. This is the case in silver. Per the definition of cobasis = Spot(bid) – Future(ask), it means either that physical metal … [...]

Gold Hammering Leads To Another Overnight Gold Market Halt

Shortly after 1amET this morning, someone with no apparent fiduciary duty to their client's for best execution or any apparent trade allocation expertise decided it was time to dump 1500 contracts into an entirely illiquid gold futures market. The … [...]

Equities Act Weak, Confused Following Oscar-Worthy Good Cop, Bad Cop Performance By The Fed

As non-collocated, carbon-based traders walk in today, they are once again greeted by a very unfamiliar shade of green in the equity futures market. There has not been a specific catalyst for another day of equity weakness however it started in Asia, w… [...]

S&P Futures Plunge Most In Over 4 Months Intraday

While attention was focused on the #winning (TWTR) and #failing (NASDAQ and TSLA and so on)… the fact is that the S&P 500 futures market saw its largest collapse from high to low intraday since June 24th. While the told-you-so dance seems so inap… [...]

Is the Dollar REALLY Losing Its Reserve Currency Status … If So, What Will REPLACE It?

Yes, The Dollar Is Losing Its Status as Reserve Currency The average life expectancy for a fiat currency is less than 40 years. But what about “reserve currencies”, like the U.S. dollar? JP Morgan noted last year that “reserve currenc… [...]

USDJPY Ignition Lifts S&P 500 Futures To All-Time-Record-Er High (For Now)

It seems ‘someone’ needed to run the S&P futures market back over Friday’s highs just to flush the stops one more time. Thanks to some JPY-selling that momentum was ignited and S&P futures just made new all-time-highs… because, well why not. … [...]

Frontrunning: October 21

FHFA Is Said to Seek at Least $6 Billion From BofA for MBS Sales (BBG) Record Pact Is on the Table, But J.P. Morgan Faces Fight (WSJ) Magnetar Goes Long Ohio Town While Shorting Its Tax Base (BBG) Mini-Wall Street’ Rises in Hamptons (WSJ) Obama to cal… [...]

Fund Warns US Oil To Surge Above Global Benchmark On Cushing Shortage

With WTI crude oil prices hovering at record levels for this time of year…     …and the spread to Brent crude has bounced from zero as Syria started up to around $4.50.     At the time time we noted the plunge in the spread w… [...]

CFTC Seeks Admission Of Market Manipulation From JPM; Jamie Balks

Even as JPMorgan seems set to put its London Whale troubles behind it with a nearly $1 billion imminent settlement, while at the same time throwing two mid-level traders at NY prosecutors and washing its hands of the whole tempest in a teapot affair, a… [...]