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Posted by Tango
on September 13, 2019, 6:51 am
Opening selling was present and set the low of the morning in both markets but buying quickly ensued. The market has been holding above 103.00. Yesterday, selling was overbearing at times as it came in waves but the buying was evenly consistent and eventually took control. We can again expect buying to occur at 8:00 as funds come in but selling will of course be present. The market feels as if it wants to continue climbing. It is also so that longs seem to compete to liquidate. The arb is 43.01 presently as the disparity between the two markets increases. Spreads are more on the defensive in both markets but have become uninteresting.
The currency world is showing widespread strength among the major currencies especially the Euro as well as the BRIC and other EM markets, as the domino reaction becomes positive while China/USA make pleasant overtures. The USDMXN is 19.3741 -0.0554 (-0.2851%), USDCOP is unchanged at 3363.00 and USDBRL closed at 4.0602 and is valued at 4.0442 on the CME.
Equities and metals are again higher and steady, bond futures and oil are lower while grains and softs are all higher.
It feels like a positive day for markets in general. It is Friday and option expiration for KC. At 102.50 strike the put call ratio is fairly even however and outright trading will be dominated by commercials and funds, mostly.