Wednesday, May 22, 2013

Pre-Market

Again, overnight was uneventful, even with the BOJ policy announcement, "nothing changed".

I'd say we have a lot of volatility leading up to 10 am when Bernie testifies before the  Joint Economic Committee's "Economic Outlook", then more volatility as people try to parse his words, then more volatility at 2 p.m. when the most important event of the week, perhaps the month, maybe the year comes with the release of the last F_O_M_C meeting's minutes.

I'm looking at  hit and run tactics today, volatility flows both ways and we may be able to make some quick 10% or so option trades, in and out, that's what a choppy , volatile market is good for.

The only significant divergences in premarket are the Yen still positive and the R2K, negative- NQ and ES are in line.


There are Rumors that Bernie leaked the minutes to Issa last month, which could explain a lot if you had that knowledge.

Other than that, we had  Bill Dudley on on Bloomberg TV with the following key observations:
  • Says QE tapering possible by autumn if economy improves, speaking in interview on Bloomberg TV. Or, if it doesn't as it won't as it is the Fed that is preventing growth, then impossible
  • Says Fed wants to make sure markets don’t overreact to taper
  • Says Fed hasn’t decided yet on tapering timing, steps
  • Says he is “very much in sync” with Bernanke on policy
  • Says fiscal drag obscuring stronger economic fundamentals
  • Sees lot of real positive things underneath the surface
  • Says economy not quite at “self-reinforcing” stage yet
  • Says 2%-2.5% growth “pretty good” given fiscal restraint
  • Says he’s “not very nervous” about slower inflation rate

Other than that, we'll be more surfers today than drivers.

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