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Market Closes At Wides In AUDJPY-ES Spread
Our favorite market spread: the AUDJPY-ES differential, which usually correlates like clockwork, until it doesn't, hast just hit one of those "doesn't" potholes. Courtesy of delta one desks, and their massive short vol positions which would be blown out of the water should the market trade down in a Visa like "elevator" pattern, the market levitated to totally uncorrelated levels by the close. Judging by the spread in these two risk indicators, the time to put on the compression trade is here: with the AUDJPY at 83.08 and the ES at 1243.5, there are about 8 points of ES to be picked when the spread collapses as it always tends to do (until it doesn't).
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these markets are whack. reality has gone out the window
It makes perfect sense that the markets would be up on the great news today. The SEC finally found some banksters that were not "too big to prosecute", wrist slaps coming to an insider trading network near you.
1250 on OE then chocks away compression would be nice.
Volume on SPY was the lowest since April 15th . Not that low volume is in anyway of interest anymore , given that it's been one of the defining characteristics of this silly rally . It looked like there was going to be a drop today .However, about 15-30 minutes after the NYSE open traders everywhere joined as one in a massive simultaneous orgasm and , in the post ejaculatory euphoria , decided to ramp the market up and hold it near the highs . No end of day collapses .
The market is up. Thats all you need to know. All these charts are giving me fucking Brain farts.
Haha, "elevator pattern". Nice.
ES
Oh what fun it is to chart...
http://99ercharts.blogspot.com/2010/12/es_2171.html
I think the ESH1 would be more relevant as a comparison . It closed at 1238.50 high of 1239.75 .
It's back by popular request - The Bloomberg Top 25
1. KIKUKO TAKENOSHITA 14. GINGER SEAMAN
2. MATTHEW WANK 15. KAREN ARSOLA
3. CHRISTOPHER FISTER 16. LUDGER POOS
4. GUSTAVO CUNTO 17. ANDREW SHAFTER
5. ROSEMARY NOBBE 18. FUKKY TANTANG
6. CHETAN DIKSHIT 19. WAN KIM
7. DARIO DIKLIC 20. ALEXANDRA SUKMAWA
8. EDWARD TITTMAN 21. WING MAN
9. DIANE BEAVER 22. DOROTHY CHUNDA
10. DAVID MORON 23. DIK BLEWITT
11. FABIENNE CRETIN 24. JOHN KOKKINIAS
12. DONNA BUMGARDNER 25. ROSS SMELLIE
Lucky Number 13?
wow - a signal for a whopping 7 points on the minis; whoop-dee-doo
perma bears are gasping/grasping for anything
No troll - it's a possible quasi-arb opportunity that happens to want to short ES. That's not a 'bearish' call.