Posted by Tango
on November 8, 2019, 7:01 am
The market began with buying but it has been a sideways market with a 70 point range so far. March volume was greater than Dec yesterday and after yesterday’s action the March OI will be greater as well. 79% of the total 166,492 lot volume was spreads. There are of course outright spreads trading but there has also been outright forward selling extending into 2022. With the weak Real and steady prices we can certainly expect origin to step in. As a result, strength in spreads outside the front are very firm. This morning Sep21/Dec21 traded up to —1.20. Today is Friday and 8:00 should resume fund buying, although not evident on the OI. It is also Dec option expiration with a large exercise at these levels. The 110.00 strike will add around 6,000 calls. The theory is that in a strong market and when call exercises outnumber puts, which they do today, the market will continue higher on the following Monday. Vice versa with puts in a down market. We’ll see. It is certainly a mixed bag today. RC arb is 46.29
The $ is strong against all currencies including the BRIC. USDMXN is 19.1812 +0.0492 (+0.26%), USDCOP is unchanged at 3316.00 and USDBRL which closed at 4.0987 is valued at 4.1122 on the CME.
Equities are slightly lower while all metals are sharply lower. Bond futures are down. Cotton and sugar are down while cocoa is up.
I’m traveling and I have limited access.
- Market - Tango November 8, 2019, 7:01 am
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