OUTLOOK: Price Signal Summary - S&P E-Minis Trend Needle Points North
Dec-06 10:17
- In the equity space, a bullish theme in S&P E-Minis remains intact and last Friday’s push higher was a positive development. The contract is trading closer to its recent highs and so far, corrections have been shallow - a bullish signal. Note too that MA studies are in a bull-mode position and this highlights positive market sentiment. A resumption of gains would signal scope for a climb towards 4644.75, the Aug 2 high. Initial support lies at 4514.74, the 20-day EMA.
- A bullish theme in EUROSTOXX 50 futures remains intact. and the contract is trading higher this week. Last week, resistance at 4387.00, Nov 24 high, was breached. The break confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, signalling a rising cycle. The focus is on 4533.00, the Jul 31 high. Initial firm support to watch is at 4340.50, the 20-day EMA.
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EURIBOR OPTIONS: Large put spread seller
Nov-06 10:15
ERM4 96.25/96.12ps sold at 5 in 19k.
OPTIONS: Sharp Demand For KRW Upside Follows Steps to Curtail Short-Selling
Nov-06 10:04
- DTCC-tracked FX options volumes cleared $110bln in daily trade on Friday, with the soft NFP release and the sharp pullback in the dollar making for the busiest session in the options market since Sep27.
- Monday trade is similarly busy, with total FX options volumes ahead of average for this time of day. Trade in Asian currencies are leading the surge in activity, as CNY, TWD, KRW and JPY hedging more than compensates for quieter EUR trade.
- USD/KRW trade has been dominated by demand for downside protection, with ₩1,260, ₩1,285 and ₩1,310 put strikes trading in size and prompting over $3 in puts to trade for every $1 in calls so far Monday.
- Demand for KRW upside comes alongside the sharp 5.7% rally in the KOSPI index and the surge in KRW forward points, trimming the 12m forward point discount to 25 points and the highest since May.
- The moves across currency markets show the broader impact of the authorities steps to ban short-selling in South Korean markets, sparking an acute wave of short-covering among the speculative community.
Figure 1: KRW 12m forward point discount trimmed to multi-month highs
EQUITIES: EU Bank stock call buyer
Nov-06 09:58
SX7E (19/01/24) 120c, bought 0.95 and 1 in 12k.
