Key Takeaways with Craig

After spending most of the day in negative territory, US Equity Prices rallied this afternoon to wind up mostly higher on the day.  US Treasury yields were slightly lower at the long end where the Micro 10-Year yield was down about 4.5 basis points while the Micro 2-Year was near steady on the day.  This brings the inversion between the Micro 2s and 10s to over 80 basis points. 

Once again, CME Energy markets were active with WTI Crude Oil prices up by 2% and Natural Gas prices, after recent declines, was up by over 6.5%.  CVOL levels were down in both energy options markets, but the Nat Gas skew, which we looked at over the last couple of days, shifted a bit toward the Calls today.

Copper futures prices, which we haven’t talked a lot about here in the Key Takeaways section lately, were down by over 3%.  As you can see in the dotted blue line in the graph below, prices still remain elevated relative to the last 6 months.  The purple line represents the CVOL skew level and shows that, after it shifted substantially toward the Calls over the last couple of trading days, the Puts were bid over the Calls today. Remember, because of its many industrial uses, the price of Copper is sometimes looked at as a barometer of the health of the global economy.  

Today's Future Price Action

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