Risk-ES Spread Closes, Reopens Ahead Of FOMC

After the ES-RISK (Rates, both absolute and butterflys, FX and Commodities) divergence yesterday brought the spread to a 10 point-wide equivalent, the subsequent lack of positive response to the Greek developments in futures once again closed the spread like clockwork. Well, the 3 day regressed chart (for apples to apples) shows that stocks are once again overeager in advance of the Fed meeting, which leads to yet another convergence opportunity between the two trade legs.


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