Wednesday, 4 November 2015

11am update - Yellen discussing rate hikes

Whilst US equities remain moderately choppy, Yellen is facing the (generally) inane questions from members of the US congress. Mr Market is currently considering comments about a possible Dec' FOMC rate hike. The probability of an equity retrace is increasing with each hour. Oil is notably weak on inventories, -1.7%.




*VIX price structure is pretty good for the equity bears... still awaiting a clear break.. and then to 18/20... as early as this Friday.. if a straight fall to the 200dma.

So... a bit of chop... but with Yellen starting to blabber about possible rate hikes at the Dec' FOMC, the market is cooling again.

I sincerely hope the maniacs at PRINT HQ decide to deliver an early Christmas present to the financials... along with the rest of the economy.

Of course.. some of you see a 25bps rate rise as the start of the end of the world. I merely refer anyone to an economics text book pre-2007.

Making good use of the word 'Transitory'


Meanwhile, here in London city

Not so great... grey gloom... at 10am EST.. an hour before nightfall.

time to cook

11.24am.. Something is going on in DIS


A great disturbance in the force...............

11.30am.. I see an option DIS trade... 10,000x  of the Nov' 105s and 100s.

10,000 @ $50 cents..   $0.5million + 10,000 @ 25 cent...  0.25 million

So.. its a short term put spread costing around 0.5-0.75 million (hard to know what the actual put purchase price was) with just 12 trading days left on the detonator clock.

It would see that is what might have spooked the underlying stock.