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January 11 Equities Commentary: Scott Bauer

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This is Scott Bauer on the floor of the CME Group. And after a sell off yesterday, well, we had a rally back, but after the sell off we saw in the morning due to some concerns coming out of China and even with weak numbers we saw this morning, weak PPI data, weak jobless claims number. Markets, you know, just find a way. Continue to make all-time highs. In fact, today 8 out of 11 in the S&P sector are higher. Pretty decent volume, pretty decent breath across the board. What's next? Well, we've got earning starting this Friday, tomorrow, in some of the big banks. We'll see JP Morgan, Wells Fargo, and then we just really continue on next week. So what is going to drive this market? Is it gonna be earnings? Is it gonna be the continuation of some of the big companies really seeing wind falls from the big corporate tax rate cut? We'll have to see here, but right now the momentum is still squarely to the upside. Yesterday, pretty heavy day in S&P mini option trading. 700,000 contracts traded, but what we've seen is a flip from earlier in the week where there was a heavy concentration of call buying. Now we're seeing a heavy concentration of put buying coming in. In fact, yesterday June 1760 puts. So going out, you know, five months or so, 48,000 of these things traded as an opening trade there. Also, heavy traders yesterday, the March 2650 put, March 2630 put. So, again, earlier in the week we saw call concentration or call trading of about 40%. That's down to about 25% or so, which is more typical for this marketplace. Let's move on to Bitcoin because, boy, what an overnight session and a day today we've seen in CME Bitcoin futures here. With the news coming out of South Korea that they may be shutting down cryptocurrency trading here, that put a big spook into the marketplace. We saw Bitcoin futures drop almost 12%, rally back, now trading towards the low of the day, not all the way down. But we've seen a range overnight of 12,800 up to 14,900. So what we have seen over the last week or two, we had seen some consolidation in trading range. Good volume, but consolidation a little less volatility, and now we're seeing some of that volatility come back into the marketplace. And the negative news we saw out of South Korea, you know, some may have thought that, that could've been off set by the news that we saw yesterday coming from Jamie Diamond, really, you know, kind of I don't want to say admitting, but saying that when he said that Bitcoin was a fraud really kinda taking that back, and also Goldman Sachs coming out and really saying that block chain and Bitcoin can be used as a currency and a form of payment going in the future here. So, you know, really a tug of war there. We'll have to see what happens. This is Scott Bauer, floor of the CME Group.

Video Details

Duration: 2 minutes and 55 seconds
Country: Andorra
Language: English
License: Dotsub - Standard License
Genre: None
Views: 6
Posted by: cmegroup on Jan 11, 2018

January 11 Equities Commentary: Scott Bauer

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