Key Takeaways with Craig

US Equity prices were little changed today as the market awaits the release of the July Employment Report scheduled for 7:30 AM Central Time tomorrow.  Implied volatility (“vol”) in CME’s Equity Index options was also little changed the though vol in the options that expire tomorrow is trading well above those that expire next week, underscoring the market moving potential of tomorrow’s jobs number. 

CME commodity prices remained active:

  • WTI Crude Oil futures prices were down another 2.4%; it has been since the middle of February since we’ve seen the price this low.  Additionally, the Risk Reversal (25 Delta Call Volatility minus Put Volatility) suggests that the Puts are trading as high relative to the Calls as we’ve seen in three months.  This is illustrated nicely in the QuikStrike graph below. 
  • CME Grains markets traded higher today with Corn up 1.6%, Soybeans up 3.6% and Wheat up 2.4%.  Both price and volatility in all three grains markets continue to trade at elevated levels compared to what we saw at this time of year going back to at least 2015.
  • Gold future prices rose by nearly 2% and, at about 1810, is trading at prices we last saw at the beginning of July.  Perhaps some of today’s move could be attributed to the US Dollar, which was lower versus most major currencies in CME’s FX futures markets. 

Like most of you, we’ll be watching the July Employment report release tomorrow and will be back reporting on it in the afternoon. 

Today's Future Price Action

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