Futures - Options - Forex

42 total posts

Weekly Review – 04/17/2017

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 04/17/2017 at 8:46 am
by CAPIS on 04/17/2017

Equity indexes closed in the red for the second consecutive week: the S&P500 Index (SPX) closed 2,328.95, down – 1.20%, the Dow Jones Industrial (INDU) closed 20,453.25, down -0.99%, and the Russell 2000 Index (RTY) closed 1,345.24, down -1.60%. For the time being it seems like the rally in equities has stalled. As it was a short trading week, option volumes were low for the week with a total of 62,988,702 options traded, averaging 16,335,269 daily volume. Thursday, the SPX traded 1,438,798 option contracts while the VIX traded 1,324,660 option contracts. The VIX closed slightly below the 16 handle, at 15.96, but was up +13.59% for the week. Volatility has been rising for the past two weeks as geopolitical events are making investors and traders nervous. The fast approaching French election (May 7), where a highly contentious landscape now includes a communist, has been the focus of global financial markets given the possibility of political outsiders winning the presidency. As it stands, a likely showdown looms between the far right Le Pen and the communist Melanchon, both of which are considered outsiders in the French political arena long dominated by the center-right Republicans and center-left Socialists. To add to investor…

Equity indexes closed in the red for the second consecutive week: the S&P500 Index (SPX) closed 2,328.95, down – 1.20%, the Dow Jones Industrial (INDU) closed 20,453.25, down -0.99%, and the Russell 2000 Index (RTY) closed 1,345.24, down -1.60%. For the time being it seems like the rally in equities has stalled. As it was a short trading week, option volumes were low for the week with a total of 62,988,702 options traded, averaging 16,335,269 daily volume. Thursday, the SPX traded 1,438,798 option contracts while the VIX traded 1,324,660 option contracts. The VIX closed slightly below the 16 handle, at 15.96, but was up +13.59% for the week. Volatility has been rising for the past two weeks as geopolitical events are making investors and traders nervous. The fast approaching French election (May 7), where a highly contentious landscape now includes a communist, has been the focus of global financial markets given the possibility of political outsiders winning the presidency. As it stands, a likely showdown looms between the far right Le Pen and the communist Melanchon, both of which are considered outsiders in the French political arena long dominated by the center-right Republicans and center-left Socialists. To add to investor…

Weekly Update – 04/03/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 04/03/2017 at 8:21 am
by CAPIS on 04/03/2017

Equity markets traded higher last week with the S&P500 Index (SPX) closing 2,362.72, up +0.90%, the Dow Jones Industrial Index (INDU) closing 20,663.22, up +0.55%, and the Russell 2000 Index (RTY) closing 1,385.92, up +2.11%. Despite the defeat of the healthcare reform bill, equities are now starting the 2nd quarter of 2017 on a positive footing: year to date the SPX is up +5.53%, the INDU is up +4.56, and the RTY is up 2.12%. Last week the total option volume was slightly lower than the previous week as 71,763,514 contracts were traded, averaging 14,798,423 traded contracts per day. On Friday the SPX saw 1,266,633 option contracts trade while the VIX traded 262,635 option contracts. VIX continues to remain low and subdued trading below the 13 handle. Speaking of volatility, there was an interesting story last week on a volatility trader who keeps buying big size VIX calls around the $0.50 price level. For example, on Thursday, the trader bought 50,000 of the VIX 21 strike calls expiring in May for $0.50 per contract betting that volatility would spike by May. These calls would expire worthless unless VIX jumps 82% in a month and a half. No one is certain…

Equity markets traded higher last week with the S&P500 Index (SPX) closing 2,362.72, up +0.90%, the Dow Jones Industrial Index (INDU) closing 20,663.22, up +0.55%, and the Russell 2000 Index (RTY) closing 1,385.92, up +2.11%. Despite the defeat of the healthcare reform bill, equities are now starting the 2nd quarter of 2017 on a positive footing: year to date the SPX is up +5.53%, the INDU is up +4.56, and the RTY is up 2.12%. Last week the total option volume was slightly lower than the previous week as 71,763,514 contracts were traded, averaging 14,798,423 traded contracts per day. On Friday the SPX saw 1,266,633 option contracts trade while the VIX traded 262,635 option contracts. VIX continues to remain low and subdued trading below the 13 handle. Speaking of volatility, there was an interesting story last week on a volatility trader who keeps buying big size VIX calls around the $0.50 price level. For example, on Thursday, the trader bought 50,000 of the VIX 21 strike calls expiring in May for $0.50 per contract betting that volatility would spike by May. These calls would expire worthless unless VIX jumps 82% in a month and a half. No one is certain…

Weekly Review – 03/27/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 03/27/2017 at 8:17 am
by CAPIS on 03/27/2017

Equity indexes closed last week in the red with the S&p500 index (SPX) traded 2,343.98, down -1.24%, the Dow Jones Industrial (INDU) traded 20,596.72, down -1.48%, and the Russell 2000 Index (RTY) traded 1,354.64, down -2.13%. Total option volume last week came in at 91,637,234 contracts traded, with a daily average of 18 million contracts, slightly higher than the average March daily volume of 17.3 million contracts. The SPX index traded 1,196,669 option contracts on Friday and the while the VIX saw 593,344 contracts trade. After weeks of what can only be described as catatonic, volatility was trading higher with April VIX futures (UXJ) trading 14.50, up +4.13, as spot VIX traded 14.52, +12.04. The failure to bring the President Trump & Speaker Ryan version of the Obama care repeal to a vote last week is weighing heavy on the markets this morning. Equity futures were treading heavy this morning as S&P500 futures (ES) traded 2,323.50, -21 points before NY-open breaching the 50-day moving average. The S&P500 index (SPX) is set to open at the lowest level in over six weeks. In large part, the market’s concerns with the failure to pass a President Trump’s healthcare bill have more to…

Equity indexes closed last week in the red with the S&p500 index (SPX) traded 2,343.98, down -1.24%, the Dow Jones Industrial (INDU) traded 20,596.72, down -1.48%, and the Russell 2000 Index (RTY) traded 1,354.64, down -2.13%. Total option volume last week came in at 91,637,234 contracts traded, with a daily average of 18 million contracts, slightly higher than the average March daily volume of 17.3 million contracts. The SPX index traded 1,196,669 option contracts on Friday and the while the VIX saw 593,344 contracts trade. After weeks of what can only be described as catatonic, volatility was trading higher with April VIX futures (UXJ) trading 14.50, up +4.13, as spot VIX traded 14.52, +12.04. The failure to bring the President Trump & Speaker Ryan version of the Obama care repeal to a vote last week is weighing heavy on the markets this morning. Equity futures were treading heavy this morning as S&P500 futures (ES) traded 2,323.50, -21 points before NY-open breaching the 50-day moving average. The S&P500 index (SPX) is set to open at the lowest level in over six weeks. In large part, the market’s concerns with the failure to pass a President Trump’s healthcare bill have more to…

Weekly Review – 03/20/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 03/20/2017 at 8:38 am
by CAPIS on 03/20/2017

Welcome to the first week of Spring (today is officially the first day of Spring). The markets seem a little disappointed with the G20 meeting over the weekend as the group seemed to have decided not to fully endorse free trade and attempted to add anti-protectionist language. This is in contrast to the group’s usual pro-free trade stance but it comes in response to what many of the members perceive as rising American protectionism. But let’s face it, America is the dominant economic player in the world and as such Steve Mnuchin was able to persuade the group to drop any prohibitive language and allow the U.S. to use economic sanctions in response to unfair trade practices. It’s safe to say the G20 members are concerned about the potential of U.S. protectionism and Trump’s “America First” policy. Last week the markets got what they expected in terms of monetary policy but they seemed more concerned with what the Fed’s commentary was going to reveal. As is often the case, market participant interpretation of policy varied. The hawks saw the Fed concerned with an overheating economy and as such it would endeavor to do more to slow it down. Primarily, it…

Welcome to the first week of Spring (today is officially the first day of Spring). The markets seem a little disappointed with the G20 meeting over the weekend as the group seemed to have decided not to fully endorse free trade and attempted to add anti-protectionist language. This is in contrast to the group’s usual pro-free trade stance but it comes in response to what many of the members perceive as rising American protectionism. But let’s face it, America is the dominant economic player in the world and as such Steve Mnuchin was able to persuade the group to drop any prohibitive language and allow the U.S. to use economic sanctions in response to unfair trade practices. It’s safe to say the G20 members are concerned about the potential of U.S. protectionism and Trump’s “America First” policy. Last week the markets got what they expected in terms of monetary policy but they seemed more concerned with what the Fed’s commentary was going to reveal. As is often the case, market participant interpretation of policy varied. The hawks saw the Fed concerned with an overheating economy and as such it would endeavor to do more to slow it down. Primarily, it…

Weekly Review – 03/13/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 03/13/2017 at 8:39 am
by CAPIS on 03/13/2017

Welcome to the central bank week: the Fed meets on Wednesday where the markets are expecting a rate hike, while the Bank of Japan, Bank of England, and the Swiss National Bank are expected to hold rates where they are. Equity markets managed to close lower for the week: the S&P500 Index (SPX) closed the week at 2,372.60, down -0.11%, the Dow Jones Industrial closed the week 20,902.98, down -0.25%, and the Russell 2000 Index (RTY) closed the week 1,365.27, down -1.37%. Total option volume was average for the week with the OCC reporting over 152,906,060 option contracts traded last week. Friday saw a total of 17,099,336 option contracts change hands with the SPX trading 1,107,367 contracts. The CBOE Futures Exchange (CFE) also saw average volumes as 234,686 VIX futures contracts were traded Friday, while 474,965 option contracts changed hands in the VIX. Speaking of the VIX, volatility remains subdued as the VIX traded the 11 and 12 handle the entire week as has been the case for many weeks now. There simply have been no market news or events that would have pushed volatility to higher levels, leaving the VIX futures in contango for as many weeks. As such,…

Welcome to the central bank week: the Fed meets on Wednesday where the markets are expecting a rate hike, while the Bank of Japan, Bank of England, and the Swiss National Bank are expected to hold rates where they are. Equity markets managed to close lower for the week: the S&P500 Index (SPX) closed the week at 2,372.60, down -0.11%, the Dow Jones Industrial closed the week 20,902.98, down -0.25%, and the Russell 2000 Index (RTY) closed the week 1,365.27, down -1.37%. Total option volume was average for the week with the OCC reporting over 152,906,060 option contracts traded last week. Friday saw a total of 17,099,336 option contracts change hands with the SPX trading 1,107,367 contracts. The CBOE Futures Exchange (CFE) also saw average volumes as 234,686 VIX futures contracts were traded Friday, while 474,965 option contracts changed hands in the VIX. Speaking of the VIX, volatility remains subdued as the VIX traded the 11 and 12 handle the entire week as has been the case for many weeks now. There simply have been no market news or events that would have pushed volatility to higher levels, leaving the VIX futures in contango for as many weeks. As such,…

Weekly Review – 03/06/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 03/06/2017 at 8:12 am
by CAPIS on 03/06/2017

Monday, last week, we took a look at the Bloomberg rate hike probability function (WIRP) and saw that the probability of a rate hike in March was hovering around 40%. By Wednesday, the probability of a rate hike had increased two-fold to 80% as several Fed officials saw increased optimism for economic growth. Fed chair Yellen echoed the sentiment which pushed that probability to 92% after she indicated Friday the improving economic conditions are key to gradual rate hikes and will be a big part of the March 14-15 Federal Open Market Committee discussions. Yellen highlighted that core inflation (personal consumption and expenditures, excluding food and energy) is at 1.7% just below the Fed’s target of 2%, while the job market continue to be positive with the unemployment rate now at 4.8%. She further indicated that global economic risks have fallen to manageable levels. Equity market reaction was mostly positive last week. After once again reaching new all-time highs, markets pulled back slightly during in response to all the interest rate talk but closed the week in the green. Friday, the S&P500 Index (SPX) closed 2,383.12, up +0.05%, the Dow Jones Industrial Index (INDU) closed 21,005.71, up +.01%, and the…

Monday, last week, we took a look at the Bloomberg rate hike probability function (WIRP) and saw that the probability of a rate hike in March was hovering around 40%. By Wednesday, the probability of a rate hike had increased two-fold to 80% as several Fed officials saw increased optimism for economic growth. Fed chair Yellen echoed the sentiment which pushed that probability to 92% after she indicated Friday the improving economic conditions are key to gradual rate hikes and will be a big part of the March 14-15 Federal Open Market Committee discussions. Yellen highlighted that core inflation (personal consumption and expenditures, excluding food and energy) is at 1.7% just below the Fed’s target of 2%, while the job market continue to be positive with the unemployment rate now at 4.8%. She further indicated that global economic risks have fallen to manageable levels. Equity market reaction was mostly positive last week. After once again reaching new all-time highs, markets pulled back slightly during in response to all the interest rate talk but closed the week in the green. Friday, the S&P500 Index (SPX) closed 2,383.12, up +0.05%, the Dow Jones Industrial Index (INDU) closed 21,005.71, up +.01%, and the…

Weekly Review – 02/27/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 02/27/2017 at 8:08 am
by CAPIS on 02/27/2017

Speculation rose last week that Russia, already suspected of interfering with the U.S. elections, may have done the same with the British vote to leave the Euro. In other news, the Oscars announced the wrong winner last night, if you care about that sort of thing. Equity markets closed mostly higher on Friday with the S&P500 Index (SPX) closed 2,367.34, up +0.15%, the Dow Jones Index (INDU) closed 20,821.76, up +0.05%, and the Russell 2000 Index (RTY) closed 1,394.52, down -0.01%. Options trading volume was decent with over 17 million option contracts traded Friday, as the SPX saw 1,331,745 contracts trade. The CFE saw 275,933 VIX futures contracts trade as the CBOE had 1,101,639 VIX contracts change hands. Equity futures were lower to flat this morning, pre-NY open, with the S&P500 e-minis (ESH7) traded 2,362.75, down -2.25. Treasury futures were also trading lower with the 10-year note traded 125-14+, down -5/32, and U.S. dollar index futures (DXH7) were flat to lower 101.07, -0.02%. Commodity futures were trading mixed as precious metals were treading lower while light sweet crude futures (CLJ7) traded 54.45, +0.83%. VIX futures (UXH7) were higher this morning hovering around 13.37, up +0.34% but the term structure remains…

Speculation rose last week that Russia, already suspected of interfering with the U.S. elections, may have done the same with the British vote to leave the Euro. In other news, the Oscars announced the wrong winner last night, if you care about that sort of thing. Equity markets closed mostly higher on Friday with the S&P500 Index (SPX) closed 2,367.34, up +0.15%, the Dow Jones Index (INDU) closed 20,821.76, up +0.05%, and the Russell 2000 Index (RTY) closed 1,394.52, down -0.01%. Options trading volume was decent with over 17 million option contracts traded Friday, as the SPX saw 1,331,745 contracts trade. The CFE saw 275,933 VIX futures contracts trade as the CBOE had 1,101,639 VIX contracts change hands. Equity futures were lower to flat this morning, pre-NY open, with the S&P500 e-minis (ESH7) traded 2,362.75, down -2.25. Treasury futures were also trading lower with the 10-year note traded 125-14+, down -5/32, and U.S. dollar index futures (DXH7) were flat to lower 101.07, -0.02%. Commodity futures were trading mixed as precious metals were treading lower while light sweet crude futures (CLJ7) traded 54.45, +0.83%. VIX futures (UXH7) were higher this morning hovering around 13.37, up +0.34% but the term structure remains…

Weekly Review – 02/13/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 02/13/2017 at 8:28 am
by CAPIS on 02/13/2017

Action in the markets was upbeat last week as equities traded higher on Friday: the S&P 500 index (SPX) traded 2,316.10, closing +0.36%, the Dow Jones Industrial Index (INDU) traded to 20,269.37, closing +0.48%, and the Russell 2000 index (RTY) traded to 1,388.84, closing +0.75%. A total of 18,265,040 options traded on Friday, slightly higher than the beginning of the week, with the SPX trading 1,432,879 options. The CFE had 277,177 VIX futures flow through as the VIX index saw 645,915 options trade hands. Equity futures were in the green this morning pre-NY open with S&P500 e-mini futures (ESH7) were trading 2,318.75, +0.27% while treasuries were lower with 10-year note futures (TYH7) trading 124-17, -8/32. U.S. dollar index futures (DXH7) were higher by +0.07% to 100.865, while gold futures (GCH7) traded 1,226.60, -0.75%, and oil futures (CLH7) traded 53.39, -0.87%. Bloomberg had an interesting story this morning talking about how foreign buyers are having second thoughts about financing U.S. debt. Foreign investors reduced their US Treasury holdings in December by most in four years: The concern is that President Trump’s policies will lead to a deficit and a rise in inflation, not to mention his proclivity for creating uncertainty. Last…

Action in the markets was upbeat last week as equities traded higher on Friday: the S&P 500 index (SPX) traded 2,316.10, closing +0.36%, the Dow Jones Industrial Index (INDU) traded to 20,269.37, closing +0.48%, and the Russell 2000 index (RTY) traded to 1,388.84, closing +0.75%. A total of 18,265,040 options traded on Friday, slightly higher than the beginning of the week, with the SPX trading 1,432,879 options. The CFE had 277,177 VIX futures flow through as the VIX index saw 645,915 options trade hands. Equity futures were in the green this morning pre-NY open with S&P500 e-mini futures (ESH7) were trading 2,318.75, +0.27% while treasuries were lower with 10-year note futures (TYH7) trading 124-17, -8/32. U.S. dollar index futures (DXH7) were higher by +0.07% to 100.865, while gold futures (GCH7) traded 1,226.60, -0.75%, and oil futures (CLH7) traded 53.39, -0.87%. Bloomberg had an interesting story this morning talking about how foreign buyers are having second thoughts about financing U.S. debt. Foreign investors reduced their US Treasury holdings in December by most in four years: The concern is that President Trump’s policies will lead to a deficit and a rise in inflation, not to mention his proclivity for creating uncertainty. Last…

Weekly Update – 02/06/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 02/06/2017 at 8:42 am
by CAPIS on 02/06/2017

Last night we watched the best Super Bowl yet, with the New England Patriots defeating the Atlanta Falcons 34-28 in overtime. The loss was heartbreaking to Atlanta fans, but it was a testament to the determination of a team to win and the sheer magic of Tom Brady: he is a magician! How else can one explain Patriots winning in overtime? The markets were up big on Friday after President Trump signed a directive to roll back Dodd-Frank and other aspects of the financial regulation Obama enacted since 2008. Bank stocks traded as if they liked the news with Bank of America (BAC) gaining +1%, JP Morgan (JPM) gaining +3, and Wells Fargo (WFC) gaining +0.9%. %The S&P500 Index (SPX) closed 2,297.42, up + 0.73%, the Dow Industrial (INDU) closed  20,071.46, up +0.94%, and the Russell 2000 Index (RTY) closed 1,377.84, up +1.50%. In the U.S. 18,647,079 options traded with the SPX trading 1,315,966 contracts. The VIX saw 573,848 options trade while the CFE had 209,653 VIX contracts trade. Equity futures were trading slightly lower this morning pre-NY open as bond futures traded higher. Gold traded 1231.00/oz, +10.00/oz as Iran is back in the news (not in a good way)…

Last night we watched the best Super Bowl yet, with the New England Patriots defeating the Atlanta Falcons 34-28 in overtime. The loss was heartbreaking to Atlanta fans, but it was a testament to the determination of a team to win and the sheer magic of Tom Brady: he is a magician! How else can one explain Patriots winning in overtime? The markets were up big on Friday after President Trump signed a directive to roll back Dodd-Frank and other aspects of the financial regulation Obama enacted since 2008. Bank stocks traded as if they liked the news with Bank of America (BAC) gaining +1%, JP Morgan (JPM) gaining +3, and Wells Fargo (WFC) gaining +0.9%. %The S&P500 Index (SPX) closed 2,297.42, up + 0.73%, the Dow Industrial (INDU) closed  20,071.46, up +0.94%, and the Russell 2000 Index (RTY) closed 1,377.84, up +1.50%. In the U.S. 18,647,079 options traded with the SPX trading 1,315,966 contracts. The VIX saw 573,848 options trade while the CFE had 209,653 VIX contracts trade. Equity futures were trading slightly lower this morning pre-NY open as bond futures traded higher. Gold traded 1231.00/oz, +10.00/oz as Iran is back in the news (not in a good way)…

Weekly Review – 01/30/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 01/30/2017 at 8:11 am
by CAPIS on 01/30/2017

The markets finished lower on Friday but were higher for the week. The Dow Jones Industrial Average (INDU) managed to trade through the 20,000 level which so many were watching and waiting for. On Friday, the Dow closed 20,093.78, -0.04%, the S&P500 Index (SPX) closed 2,294.69, down -0.09%, and the Russell 2000 Index (RTY) closed 1,370.70, down -0.36%. Option volumes were about average on Friday, as 15,843,933 options were traded, with the SPX seeing 1,067,859 options trade. In the VIX, 636,374 options changed hands and the CFE had 168,532 VIX futures trade. U.S. equity futures a trading lower this morning in part responding to political events over the weekend. Pre NY-open S&P 500 e-mini futures were trading 2,281.00, down -0.36%, 10 year Treasury note futures were trading 124-07+, down +2/32nd, Comex gold futures were trading 1,195.30, up +0.35%, and U.S. dollar was trading stronger with U.S. dollar index futures trading 100.815, up +0.29%. Although trading subdued in terms of historical averages, February VIX futures (UXG7) were trading higher this morning at 12.86, up +2.67% and spot VIX was also higher at 11.37, up +7.47%. Last week President Trump withdrew the US from the TPP, managed to draw the ire of…

The markets finished lower on Friday but were higher for the week. The Dow Jones Industrial Average (INDU) managed to trade through the 20,000 level which so many were watching and waiting for. On Friday, the Dow closed 20,093.78, -0.04%, the S&P500 Index (SPX) closed 2,294.69, down -0.09%, and the Russell 2000 Index (RTY) closed 1,370.70, down -0.36%. Option volumes were about average on Friday, as 15,843,933 options were traded, with the SPX seeing 1,067,859 options trade. In the VIX, 636,374 options changed hands and the CFE had 168,532 VIX futures trade. U.S. equity futures a trading lower this morning in part responding to political events over the weekend. Pre NY-open S&P 500 e-mini futures were trading 2,281.00, down -0.36%, 10 year Treasury note futures were trading 124-07+, down +2/32nd, Comex gold futures were trading 1,195.30, up +0.35%, and U.S. dollar was trading stronger with U.S. dollar index futures trading 100.815, up +0.29%. Although trading subdued in terms of historical averages, February VIX futures (UXG7) were trading higher this morning at 12.86, up +2.67% and spot VIX was also higher at 11.37, up +7.47%. Last week President Trump withdrew the US from the TPP, managed to draw the ire of…

Weekly Review – 01/23/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 01/23/2017 at 8:08 am
by CAPIS on 01/23/2017

Welcome to the first week of the Trump administration. The transfer of power went as smoothly as it has always occurred in the U.S., a fact the media has highlighted for the past couple of weeks. Stocks closed the week slightly mixed but were in the green on Friday: the S&P500 index (SPX) closed 2,271.31, up +0.34%, the Dow Jones Industrial Index (INDU) closed 19,827.25, up +0.48%, and the Russell 2000 index (RTY) closed 1,351.85, up +0.45%. On inauguration day a total of 21,654,230 options traded in the U.S., the SPX traded 1,133,653, while 428,697 VIX options changed hands. CFE trading volumes were light as a total of 199,620 VIX futures were traded. This morning, before the NY open, equity futures were trading lower with S&P 500 e-mini futures trading 2,261.50, down -0.19%, 10-year note futures were trading 124-14+, up +7/32nds, gold futures were trading 1,214.50, up +0.80%, and WTI oil were trading 52.37, down -1.60%. With president Trump mainly talking about his growth plans, the dollar is under pressure this morning as U.S. dollar index futures are lower by -0.35% to 100.34. President Trump is expected to sign an executive order today to renegotiate the NAFTA agreement so the US dollar, the…

Welcome to the first week of the Trump administration. The transfer of power went as smoothly as it has always occurred in the U.S., a fact the media has highlighted for the past couple of weeks. Stocks closed the week slightly mixed but were in the green on Friday: the S&P500 index (SPX) closed 2,271.31, up +0.34%, the Dow Jones Industrial Index (INDU) closed 19,827.25, up +0.48%, and the Russell 2000 index (RTY) closed 1,351.85, up +0.45%. On inauguration day a total of 21,654,230 options traded in the U.S., the SPX traded 1,133,653, while 428,697 VIX options changed hands. CFE trading volumes were light as a total of 199,620 VIX futures were traded. This morning, before the NY open, equity futures were trading lower with S&P 500 e-mini futures trading 2,261.50, down -0.19%, 10-year note futures were trading 124-14+, up +7/32nds, gold futures were trading 1,214.50, up +0.80%, and WTI oil were trading 52.37, down -1.60%. With president Trump mainly talking about his growth plans, the dollar is under pressure this morning as U.S. dollar index futures are lower by -0.35% to 100.34. President Trump is expected to sign an executive order today to renegotiate the NAFTA agreement so the US dollar, the…

Weekly Review – 1/17/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 01/17/2017 at 8:21 am
by CAPIS on 01/17/2017

U.S. equity markets were mostly higher on Friday: the S&P 500 index (SPX) closed at 2,274.64, up +0.18%, the Dow Jones Industrial (INDU) closed slightly down -0.03% to 19,885.73, and the Russell 2000 (RTY) closed higher to 1,372.05, up +0.81%. Friday’s option volume was slightly lower than the week with a total of $16,238,509 total options traded. The SPX saw 1,136,596 trade while the VIX saw 607,462 change hands. The CME had 322,648 VIX futures contracts flow through their pipes. Equity futures were trading lower this morning with e-mini S&P 500 futures (ESH7) trading lower to 2,264.00, down -0.37% pre-NY open. With the U.S. dollar trading lower against most majors, February gold futures (GCG7) were strongly bid to 1,212.90, up +1.40% and February light sweet crude (CLF7) was also trading higher to 53.16, up +1.51% this morning. The yield on 10-year treasuries dropped to 2.33 as the U.S. 10 year treasury notes (TYH7) were trading higher by 12/32 to 125-05. U.S. dollar index futures are trading at 100.575, -0.62% lower this morning at 8:15 EST. Comments made by President Elect Donald Trump indicating the U.S. dollar is too strong in part due to China’s own currency management. Today’s move is…

U.S. equity markets were mostly higher on Friday: the S&P 500 index (SPX) closed at 2,274.64, up +0.18%, the Dow Jones Industrial (INDU) closed slightly down -0.03% to 19,885.73, and the Russell 2000 (RTY) closed higher to 1,372.05, up +0.81%. Friday’s option volume was slightly lower than the week with a total of $16,238,509 total options traded. The SPX saw 1,136,596 trade while the VIX saw 607,462 change hands. The CME had 322,648 VIX futures contracts flow through their pipes. Equity futures were trading lower this morning with e-mini S&P 500 futures (ESH7) trading lower to 2,264.00, down -0.37% pre-NY open. With the U.S. dollar trading lower against most majors, February gold futures (GCG7) were strongly bid to 1,212.90, up +1.40% and February light sweet crude (CLF7) was also trading higher to 53.16, up +1.51% this morning. The yield on 10-year treasuries dropped to 2.33 as the U.S. 10 year treasury notes (TYH7) were trading higher by 12/32 to 125-05. U.S. dollar index futures are trading at 100.575, -0.62% lower this morning at 8:15 EST. Comments made by President Elect Donald Trump indicating the U.S. dollar is too strong in part due to China’s own currency management. Today’s move is…

Weekly Review – 01/09/17

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Futures - Options - Forex

posted by CAPIS on 01/09/2017 at 8:18 am
by CAPIS on 01/09/2017

Equity markets closed mostly in the green Friday with the S&P 500 index (SPX) closing 2,276.98, up +0.35%, the Dow Jones Industrial  index (INDU) closing 19,963.80, up +0.32%, and the Russell 2000 index (RTY) closing 1,367.28, down -0.34%. A total of 17,194,813 options traded on Friday with the SPX trading 1,276,095 options and the VIX trading 517,769. On the CFE, VIX futures volume was 167,765 with open interest increasing by 6,910. Equity futures are trading flat to down this morning before NY open. S&P500 e-minis (ES) are trading 2,269.25, down -0.09% and Russell 2000 e-minis (RTA) are trading 1,362.60, down -0.18%. West Texas intermediate crude futures (CL1) are also lower, trading 53.02, down -1.80%, and Gold futures (GC) are trading higher to 1,181, up +0.65%. The US dollar index is trading slightly at 102.22, up +0.01% and 10-year Treasury note futures (TY) are trading 124-23, up +10/32. Most everyone I talk to seems to be watching the Dow Jones Industrial Index (INDU) as it keeps flirting with the 20,000 level. Personally, I don’t understand the fascination with that particular level, but then again investor psychology is a large part of our business. Well, that and the fact that the financial…

Equity markets closed mostly in the green Friday with the S&P 500 index (SPX) closing 2,276.98, up +0.35%, the Dow Jones Industrial  index (INDU) closing 19,963.80, up +0.32%, and the Russell 2000 index (RTY) closing 1,367.28, down -0.34%. A total of 17,194,813 options traded on Friday with the SPX trading 1,276,095 options and the VIX trading 517,769. On the CFE, VIX futures volume was 167,765 with open interest increasing by 6,910. Equity futures are trading flat to down this morning before NY open. S&P500 e-minis (ES) are trading 2,269.25, down -0.09% and Russell 2000 e-minis (RTA) are trading 1,362.60, down -0.18%. West Texas intermediate crude futures (CL1) are also lower, trading 53.02, down -1.80%, and Gold futures (GC) are trading higher to 1,181, up +0.65%. The US dollar index is trading slightly at 102.22, up +0.01% and 10-year Treasury note futures (TY) are trading 124-23, up +10/32. Most everyone I talk to seems to be watching the Dow Jones Industrial Index (INDU) as it keeps flirting with the 20,000 level. Personally, I don’t understand the fascination with that particular level, but then again investor psychology is a large part of our business. Well, that and the fact that the financial…

Weekly Review – 01/03/17

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 01/03/2017 at 7:44 am
by CAPIS on 01/03/2017

Although the markets closed lower on Friday, the markets are greeting 2017 with a sense of optimism: before the bell the S&P e-minis futures (ESH7) were trading higher by +17.00 to 2253.25, light sweet crude futures (CLG7) are up +1.21 to 54.91, dollar index futures (DXH7) are up +1.139 to 103.42. On Friday, 12,485,283 options traded in the US. The SPX saw 1,166,472 trade while the VIX saw 240,171 options trade hands. The CFE had 127,934 VIX futures trade. The markets started 2016 in a not-so-optimistic tone but the Dow Industrial Average Index (INDU) ended the year up +13%, the S&P 500 Index (SPX) ended the year up +9.5%, and the Russell 2000 Index (RUT) ended the year up +19%. The best performing sectors for the year were Energy (DJUSEN) up +23% and Financials (DJUSFN) up +21%, while Healthcare and Consumer Staples lagged. The markets are clearly optimistic on Trump’s presidency with high hopes that tax cuts and simplified regulation will be the theme for 2017. Crude gained this morning on news that OPEC intends to keep their word regarding oil production cuts as Kuwait and Oman announced they were cutting production. Brent crude also rose more than 2% after…

Although the markets closed lower on Friday, the markets are greeting 2017 with a sense of optimism: before the bell the S&P e-minis futures (ESH7) were trading higher by +17.00 to 2253.25, light sweet crude futures (CLG7) are up +1.21 to 54.91, dollar index futures (DXH7) are up +1.139 to 103.42. On Friday, 12,485,283 options traded in the US. The SPX saw 1,166,472 trade while the VIX saw 240,171 options trade hands. The CFE had 127,934 VIX futures trade. The markets started 2016 in a not-so-optimistic tone but the Dow Industrial Average Index (INDU) ended the year up +13%, the S&P 500 Index (SPX) ended the year up +9.5%, and the Russell 2000 Index (RUT) ended the year up +19%. The best performing sectors for the year were Energy (DJUSEN) up +23% and Financials (DJUSFN) up +21%, while Healthcare and Consumer Staples lagged. The markets are clearly optimistic on Trump’s presidency with high hopes that tax cuts and simplified regulation will be the theme for 2017. Crude gained this morning on news that OPEC intends to keep their word regarding oil production cuts as Kuwait and Oman announced they were cutting production. Brent crude also rose more than 2% after…

Weekly Review – 12/27/16

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Futures - Options - Forex

posted by CAPIS on 12/27/2016 at 8:13 am
by CAPIS on 12/27/2016

The last trading week of 2016 will be a short one. Equity markets have been trading sideways now for the better part of two weeks, albeit near all time highs, and this week is likely to see more of the same. Although some traders and investors are taking the rest of the week off, one has to wonder what the catalyst would be to change the status quo. The sharp rally in the indexes over the past month could see traders and investors take profits and prove to be an opportunity for large investors with set investment mandates such as pension funds to rebalance their portfolios. Friday saw light volumes with the SPX pit trading 567,006 options while the VIX saw 201,242 options change hands. CFE volumes also were light with 154,166 VIX contracts traded. Despite the light volumes, equity index averages closed in the green: S&P500 index (SPX) closed up +0.13% to 2,263.79, the Dow Jones Industrial Average (INDU) closed up +0.07% to 19,933.81, and the Russell 2000 (RTY) closed up +0.65% to 1,371.51.  The US dollar index remained little changed over the week as gold and treasuries find a floor. Before the NY open, futures are mostly trading flat to higher. S&P futures are up +0.07% to…

The last trading week of 2016 will be a short one. Equity markets have been trading sideways now for the better part of two weeks, albeit near all time highs, and this week is likely to see more of the same. Although some traders and investors are taking the rest of the week off, one has to wonder what the catalyst would be to change the status quo. The sharp rally in the indexes over the past month could see traders and investors take profits and prove to be an opportunity for large investors with set investment mandates such as pension funds to rebalance their portfolios. Friday saw light volumes with the SPX pit trading 567,006 options while the VIX saw 201,242 options change hands. CFE volumes also were light with 154,166 VIX contracts traded. Despite the light volumes, equity index averages closed in the green: S&P500 index (SPX) closed up +0.13% to 2,263.79, the Dow Jones Industrial Average (INDU) closed up +0.07% to 19,933.81, and the Russell 2000 (RTY) closed up +0.65% to 1,371.51.  The US dollar index remained little changed over the week as gold and treasuries find a floor. Before the NY open, futures are mostly trading flat to higher. S&P futures are up +0.07% to…

Weekly Review – 12/19/16

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Futures - Options - Forex

posted by CAPIS on 12/19/2016 at 8:41 am
by CAPIS on 12/19/2016

Stocks closed lower on Friday as traders turned cautious after weeks of rallying. The S&P 500 (SPX) closed at 2,258.07, -0.18%, the Dow Industrial (INDU) closed 19,843.41, -0.04%, and the Russell 2000 (RTY) closed 1,364.19, -0.16%. In the SPX a total of 1,433,301 options were traded on Friday and VIX options trading volume was 719,107, as 248,659 VIX futures traded hands at the CFE. Futures are trading flat to higher before the NY open. Following the US presidential election, equities, rates, and the US dollar rallied as traders ditched bonds, precious metals, and the Yen: Ahead of the Bank of Japan policy review on Tuesday the Yen is trading stronger against the greenback. Gold futures are also gaining this morning and are up $4.30/oz to $1141.70 as overnight trading took a defensive tone. After gaining over 1.4% last week, the US dollar index (DX) took a consolidative tone over the weekend as traders appear to square their positions over the holiday season and year end. Fed chairwoman Yellen is due to speak 12:30pm CST on the state of job markets and depending on the tone an outlook, her comments could have an impact on yields and the dollar. Barring any…

Stocks closed lower on Friday as traders turned cautious after weeks of rallying. The S&P 500 (SPX) closed at 2,258.07, -0.18%, the Dow Industrial (INDU) closed 19,843.41, -0.04%, and the Russell 2000 (RTY) closed 1,364.19, -0.16%. In the SPX a total of 1,433,301 options were traded on Friday and VIX options trading volume was 719,107, as 248,659 VIX futures traded hands at the CFE. Futures are trading flat to higher before the NY open. Following the US presidential election, equities, rates, and the US dollar rallied as traders ditched bonds, precious metals, and the Yen: Ahead of the Bank of Japan policy review on Tuesday the Yen is trading stronger against the greenback. Gold futures are also gaining this morning and are up $4.30/oz to $1141.70 as overnight trading took a defensive tone. After gaining over 1.4% last week, the US dollar index (DX) took a consolidative tone over the weekend as traders appear to square their positions over the holiday season and year end. Fed chairwoman Yellen is due to speak 12:30pm CST on the state of job markets and depending on the tone an outlook, her comments could have an impact on yields and the dollar. Barring any…

Dollar Gains Continue Post Fed

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Futures - Options - Forex

posted by CAPIS on 12/15/2016 at 12:35 pm
by CAPIS on 12/15/2016

The Federal Reserve raised the overnight borrowing rates yesterday by 25 basis points (bps) to a range of 50 bps – 75 bps giving a boost to the US dollar which is trading higher against other currencies. The US Dollar Index December Futures (DXZ6) are trading above the 103 handle for the first time in over a decade. The US dollar was especially stronger against the Euro with December Euro Futures (ECZ6) trading lower -1.4% on the day to 1.0413. The rally in the US dollar comes amid improved expectations that the Fed will continue to raise interest rates at least three times next year, making it the lone central bank pursing a tightening monetary policy. Economic data has been supportive as well increasing the probability the Fed will raise rates next year as month-over-month Consumer Prices for November matched expectations of an increase to 0.2% and year-on-year prices rose to 1.7%. Treasuries traded lower as yields rose, with the 10-year treasury rate traded over 2.61% at one point today and US dollar strength continues pushing precious metals and bond prices lower. Equities are recovering after closing lower yesterday, with the SPX 500 trading the 2268 handle. Financials are leading…

The Federal Reserve raised the overnight borrowing rates yesterday by 25 basis points (bps) to a range of 50 bps – 75 bps giving a boost to the US dollar which is trading higher against other currencies. The US Dollar Index December Futures (DXZ6) are trading above the 103 handle for the first time in over a decade. The US dollar was especially stronger against the Euro with December Euro Futures (ECZ6) trading lower -1.4% on the day to 1.0413. The rally in the US dollar comes amid improved expectations that the Fed will continue to raise interest rates at least three times next year, making it the lone central bank pursing a tightening monetary policy. Economic data has been supportive as well increasing the probability the Fed will raise rates next year as month-over-month Consumer Prices for November matched expectations of an increase to 0.2% and year-on-year prices rose to 1.7%. Treasuries traded lower as yields rose, with the 10-year treasury rate traded over 2.61% at one point today and US dollar strength continues pushing precious metals and bond prices lower. Equities are recovering after closing lower yesterday, with the SPX 500 trading the 2268 handle. Financials are leading…

Weekly Review – 12/12/16

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Futures - Options - Forex

posted by CAPIS on 12/12/2016 at 8:31 am
by CAPIS on 12/12/2016

Lat week’s trading was one for the books. For one thing, we are inching closer to Dow 20,000, a psychological level which a euphoric market certainly wants to see before year end. Stock futures are trading slightly lower to flat this morning before NY open. Stock indexes closed at record highs with the S&P500 (SPX) closing +0.59% at 2259.53 and Russell 2000 (RTY) closed +0.12% at 1388.07. Friday saw 1,610,810 options traded in the SPX while the 523,598 VIX options change hands. The CME had 185,385 contracts flow through its pipes. Equity volatility remains subdued, with the VIX last trading around 12.30, although trading volume in VIX options and related exchange products picked up over the week. The level to watch today in the SPX is 2250 which is a likely support level on a pullback in the index. The big news this morning is the agreement reached before the weekend between the OPEC and non-OPEC members to cut 560K barrels a day starting in 2017  with the Saudis agreeing to cut more than previously announced.   Oil prices are trading higher over +4%, with WTI Light Crude futures trading at 53.79 and Brent Crude futures trading 56.47 at the time of this writing. Crude Futures are…

Lat week’s trading was one for the books. For one thing, we are inching closer to Dow 20,000, a psychological level which a euphoric market certainly wants to see before year end. Stock futures are trading slightly lower to flat this morning before NY open. Stock indexes closed at record highs with the S&P500 (SPX) closing +0.59% at 2259.53 and Russell 2000 (RTY) closed +0.12% at 1388.07. Friday saw 1,610,810 options traded in the SPX while the 523,598 VIX options change hands. The CME had 185,385 contracts flow through its pipes. Equity volatility remains subdued, with the VIX last trading around 12.30, although trading volume in VIX options and related exchange products picked up over the week. The level to watch today in the SPX is 2250 which is a likely support level on a pullback in the index. The big news this morning is the agreement reached before the weekend between the OPEC and non-OPEC members to cut 560K barrels a day starting in 2017  with the Saudis agreeing to cut more than previously announced.   Oil prices are trading higher over +4%, with WTI Light Crude futures trading at 53.79 and Brent Crude futures trading 56.47 at the time of this writing. Crude Futures are…

Weekly Review – 12/05/16

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 12/05/2016 at 8:33 am
by CAPIS on 12/05/2016

On Friday, equity markets closed in the green for the most part with the S&P500 Index (SPX) closing +0.04% at 2191.95, the Russell 2000 Index (RTY) closing +0.03% at 1314.25, and the Dow Jones Industrial Average (INDU) closed down -0.11% at 19,170.42. Total option volume on Friday was 15,890,577. The SPX traded 1,103,182 options and VIX options volume was light at 315,374 contracts.  The big story over the weekend was the Italians overwhelmingly voted “NO” to the to the proposed Constitutional changes which would have given more power to the upper house of Parliament and the Prime Minister. The vote was clearly a rejection of Matteo Renzi who promised to resign in the event his legislative reform was defeated. The concern was his resignation would leave a void to be filled by the far right “5 Star Movement” party which supports an exit from the Euro zone. True to his word, Renzi announced he would submit his resignation the president, but even so, he may still govern until a new Prime Minister is installed. At the start of the Asian session yesterday, traders sold the Euro heavily against the dollar trading as low as 1.051, pushing it to the lowest levels in nearly two years. But overnight and into…

On Friday, equity markets closed in the green for the most part with the S&P500 Index (SPX) closing +0.04% at 2191.95, the Russell 2000 Index (RTY) closing +0.03% at 1314.25, and the Dow Jones Industrial Average (INDU) closed down -0.11% at 19,170.42. Total option volume on Friday was 15,890,577. The SPX traded 1,103,182 options and VIX options volume was light at 315,374 contracts.  The big story over the weekend was the Italians overwhelmingly voted “NO” to the to the proposed Constitutional changes which would have given more power to the upper house of Parliament and the Prime Minister. The vote was clearly a rejection of Matteo Renzi who promised to resign in the event his legislative reform was defeated. The concern was his resignation would leave a void to be filled by the far right “5 Star Movement” party which supports an exit from the Euro zone. True to his word, Renzi announced he would submit his resignation the president, but even so, he may still govern until a new Prime Minister is installed. At the start of the Asian session yesterday, traders sold the Euro heavily against the dollar trading as low as 1.051, pushing it to the lowest levels in nearly two years. But overnight and into…

Weekly Review – 11/28/16

News Trading Desk Futures - Options - Forex

Futures - Options - Forex

posted by CAPIS on 11/28/2016 at 8:33 am
by CAPIS on 11/28/2016

The markets traded higher during the short week, marking three weeks of gains as the markets hope that the new administration will engage in large investments in infrastructure and lower tax rates. The major indexes closed higher for the week, the S&P500 index closed at 2213.35, Dow closed at 19,152.14, Russell 2000 index (RTY) at 1347.20, andf Nasdaq Composite at 5,398.92. Friday’s option trading volumes were decent as the SPX traded 1,077,037 options and VIX traded 355,045 options, and VIX futures saw 136,297 contracts change hands. In the CME, trading volume was lower with 14.2 million total contracts traded across all products. This morning, equity futures are trading lower before NY open and the VIX is trading one full point higher around 13.26. There are several macro events in the upcoming days which are driving market action this morning. First, on November 30 we have the meeting of OPEC ministers in Vienna to discuss production cuts and set to conclude in two days. At issue remains the size of production cuts and the share of the cuts between OPEC and non-OPEC producers. Generic first oil futures are trading higher by 1% this morning, around $46.63. Oil companies would certainly be hoping for a cut…

The markets traded higher during the short week, marking three weeks of gains as the markets hope that the new administration will engage in large investments in infrastructure and lower tax rates. The major indexes closed higher for the week, the S&P500 index closed at 2213.35, Dow closed at 19,152.14, Russell 2000 index (RTY) at 1347.20, andf Nasdaq Composite at 5,398.92. Friday’s option trading volumes were decent as the SPX traded 1,077,037 options and VIX traded 355,045 options, and VIX futures saw 136,297 contracts change hands. In the CME, trading volume was lower with 14.2 million total contracts traded across all products. This morning, equity futures are trading lower before NY open and the VIX is trading one full point higher around 13.26. There are several macro events in the upcoming days which are driving market action this morning. First, on November 30 we have the meeting of OPEC ministers in Vienna to discuss production cuts and set to conclude in two days. At issue remains the size of production cuts and the share of the cuts between OPEC and non-OPEC producers. Generic first oil futures are trading higher by 1% this morning, around $46.63. Oil companies would certainly be hoping for a cut…

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