Posts Tagged ‘BTP futures’

Notes From Underground: A Visit to February 5 (Sometimes A Reminder Is Necessary To Clear The Stain Of Bad Execution)

March 15, 2012

The world is carrying on in its design of vast pools of liquidity in a “sea of tranquility” … for the moment. Are Europe’s problems solved as the FRENCH ROOSTER Nicholas Sarkozy has crowed? Absolutely not. The travails of debt plagued economies will begin for the nations living on the IBERIAN PENINSULA. As I have argued for a long time in this BLOG, Spain is a far worse problem then Italy but Italian BONDS suffered as they were the only FUTURES HEDGE AVAILABLE FOR THE PROBLEMS OF THE GIIPS.


Notes From Underground: Examining the Theoretical Premise of Notes From Underground

March 6, 2012

ABSTRACT: A theoretical view of NOTES FROM UNDERGROUND is that the initial action of a flattening yield curve is BULLISH, or, most importantly, not BEARISH for a developed market currency for it signifies that a CENTRAL BANK is ahead of the inflation curve and thus, is given confidence by BOND BUYERS. The corollary to this premise is that flattening curves and certainly inverted curves are a BEARISH INDICATOR FOR EQUITY MARKETS. In a RISK ON/RISK OFF algo environment, the market continually reflects this, especially as we saw today. However, day-to-day trading strategies are certainly not the major test of the theory. A reader of the BLOG commented on Sunday’s post that the opposite view was what he believed. Again, theories are to be tested for trading like good science “ADVANCES ONE FUNERAL AT A TIME.” (Max Planck).


Notes From Underground: OPA! Time to Drink Some Ouzo and Reflect on the Greek Situation

February 13, 2012

Europe was/is/will be the catalyst for the markets, from equities and commodities to, of course, currencies. Whether the problems are violent strikes in Athens or insolvent banks in France and Spain, the issues that PLAGUE EUROPE ARE EXISTENTIAL IN NATURE. Can the problems of sovereign default and the deflationary impact rippling from a massive deleveraging be contained by a massive douse of LTRO or QE3 in the U.S.? For now the markets are CONTENT to allow the flood of liquidity be the potion for increased portfolio risk.


Notes From Underground: “Everybody’s Talking At Me I Can’t Hear A Word They’re Saying…”

December 1, 2011

It was a day of dueling flapjawing as the European elite was out talking about everything that needs to be done to save the EURO and Sarkozy promising that there would not be any European defaults. Again to paraphrase Jimmy Breslin: Sarkozy is a little man in search of a balcony. The time for public orations is past and the call to action is immediate and real. Global investors don’t want any more rhetoric. Next Friday is considered the day of reckoning but if the EUROCRATS have any sense all the needed policy will have been put in place by the December 9th meeting so that the markets will have absorbed the “shock and awe” and there will be no disappointment.



July 20, 2011

The perfidy of EUROPE has led down a path of possible financial ruin as the EUROCRATIC ELITE have lived in a fantasy land denying that the markets have had a better understanding of the ills plaguing European finances. Tomorrow, the Brussels bureaucrats and their political comrades will announce what type of program has been crafted to halt the spread of FINANCIAL CONTAGION. The EURO currency was well bid early in the day as the market was breathing a sigh of relief that a genuine plan is in place to stave off default and build a fire wall to protect Italy and Spain. The Italian BTP futures rallied again against the BUNDS. In CASH terms, the Italian 10-years were 14 basis points lower while the BUNDS were 9 basis points higher.