Recap 10-17-12

~ globalmacrotrading

Commentary:

There are a large & concentrated number of options expiring this Friday at the 1450 strike on the cash index. The options are roughly evenly split between calls and puts, suggesting that we may get subdued volatility around that level through Friday, similar to last month:

Notable:

  • US Housing Starts and Building Permits both jumped sharply in Sept. Permits jumped 90k to 894k vs 810k exp and 801k exp.
  • Moody’s left their rating on Spain unchanged with a negative outlook. It was left unchanged largely because of the ECB’s OMT which “materially reduces” the odds of Madrid losing market access. Many had expected a cut to junk.

Upcoming Data:

  • Thu: US Jobless Claims, Philly Fed
  • Fri: CanadaCPI, US Existing Home Sales

Published by globalmacrotrading

I am a G20 Global Macro Portfolio Manager in NYC. My background includes stints at a major investment bank, a commodities market maker, and one of the world's largest global macro hedge funds.