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January 18 Equities Commentary: Scott Bauer

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This is Scott Bauer on the floor of the CME Group. And after the huge rally we saw yesterday, we're seeing the market take somewhat of breather today. Now, the DOW is down, but most of that is due to one stock bowing. S&P has pretty much hovered around the flatline all day today. This is just on the heels of yesterday's brand new all-time record close at 280256. Now, what's gonna happen next, well, you know, volatility is actually up a little bit here going into some decision that's gonna be made hopefully over the next 24 hours or so based on the government shutdown for the weekend. But looks like we're having a lot of, you know, maybe a lot of retail investors trying to position themselves ahead of that in case something really doesn't happen. But in addition to volatility, you know, really being up while the market is up which is truly an aberration. We're also seeing the 10-year really get high -- as high as it's been in quite some time here, above 2.6. So a couple metrics there to really watch out for. Now, with yesterday's huge rally, it was an incredibly, incredibly busy option day here in the ES mini complex. In fact, open interest, or ES futures and options, are almost at 12 million which is he highest it has been in months. Yesterday, almost a million ES option contracts traded just by themselves. Sixty-six percent on the put side, thirty-four percent on the call side. The leading volume options that traded yesterday, March 2850 calls, March 2685 puts. And then for this month, the EW end of month three January 2470 puts. So, you know, watch those, but, again, extreme, extreme option activity yesterday. With volatility with the spike that we've seen here, to the end of the day tomorrow, the S&P option contracts are suggesting a move of about $14. And going out to next Friday, that move is priced in at about $32. That's higher than we typically see, and that's because of this spike up in volatility that we've seen this week. Now, let's get over and talk about Bitcoin futures here at the CME. We all know what's going on with the news coming out of Asia, coming out of China, South Korea. What are they going to do with their cryptocurrency exchanges? Is there gonna be regulation? Are they gonna get, you know, shut off all together? And that has put the cryptomarkets and Bitcoin futures here into somewhat of a frenzy. More volatility than we have seen in the last few weeks or so. In fact, just today we've seen a range in Bitcoin futures here at the CME from 10,645 up to 12,025. But if we backtrack and include yesterday, that low yesterday was all the way down at 9225. Range yesterday was 9225 up to 11,800. Record trading volumes on Bitcoin futures over the last couple days. Volatility, we'll see what happens. We know there's a rally back today. Usually what happens there is we see volatility and volume contract a little bit. We'll have to watch and see what happens. Scott Bauer on the floor of the CME Group.

Video Details

Duration: 3 minutes and 19 seconds
Country: Andorra
Language: English
License: Dotsub - Standard License
Genre: None
Views: 27
Posted by: cmegroup on Jan 18, 2018

January 18 Equities Commentary: Scott Bauer

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