Sunglasses for anonymity and cool-factor...
New trading floor opens up at the old CME building in early June, and they're requiring that we wear our trading jackets. I broke out the old trading jacket, but now I need a No Agenda button to throw on the jacket.
I hope No Agenda shop has some pins in stock, June 6th is right around the corner!
Global bond market continues to get clobbered, dragging down many highly leveraged assets with it.
Global bond market lost $493bn this week bringing the total loss from all-time-highs up to $7.94 trillion. 10yr yields for gov debt around the world skyrocketing as a result, US10YR now 2.9%.
Nasdaq suffered its worst month since 2008 down 13% in April. Cathie Wood's ARK fund experiencing max pain this month, down 29% in April. Its worst month on record.
Not closing my short bond position yet.
Introducing: SPX Volatility Surface
3D view of the SPX volatility surface showing the changes in volatility (graphs to the left and right) across various deltas and durations over the past two weeks in the SPX options market.
An advanced look at volatility, but the 3D surface sheds far more light on volatility than just the VIX. For example, the near-dated puts (10 to 30 delta) have been clobbered, which makes sense as Russia-Ukraine fears subside and the market drifts higher.
Reverse repo (RR) hits all time high again this week with $2.473 trillion now stored with the Fed.
There's a cash market out there sustaining our reserve banking system, and those assets shuffle around based on yield and creditworthiness. RR is one of those places.
RR currently yields 1.55%, up almost double after the Fed recently raised rates 75bps. RR increasing means assets have been drained from the credit market, specifically short-dated Treasuries which continue to get annihilated.
Germany power price (1yr fwd) charted against the Eurozone Gas Price Benchmark, showing how troubled Germany's power situation is in relative terms.
German power costs up 2x year-to-date 2022, up 5x from 2020. Germany's economic model itself breaking down, as it relies on geopolitical assumptions which are breaking down in the wake of the Ukraine/Russian conflict.
In short, Germany's economy is heavily reliant on cheap Russian energy.
Not looking good over there.
Bloomberg Quicktake shilling our bug-filled burger future.
Eat the bugs, citizens.
I bet they'll blame this on climate change somehow...
Knight of the Market Makers
Options (volatility) Trader in Chiraq
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