Key Takeaways with Craig

US Equity prices were mixed at the beginning of the trading session, but by the end, all four major US Indexes were trading higher by between about .9% and 1.25%.  The Dow Jones Industrials, S&P 500 and Nasdaq-100 are all trading at 2023 highs while the Russell 2000 is nearing the high level for the year.  In fact, CME’s E-mini Nasdaq-100 hasn’t traded this high since January, 2022 and the current at-the-money, 30-day implied volatility level, at 17.7% is lower than it was then. 

For the second day in a row, US Treasury yields were nearly unchanged on the day, though CME’s Micro 2-Year Treasury yield was up by about 2 basis points, while the Micro 10-Year was down by about 4.  This leaves the inversion between the two at just under 80 basis points. 

CME commodity markets were active again today, with price action as follows:

Gold Futures: +1.26%

WTI Crude Oil Futures:  +2.1%

Natural Gas Futures:  +4.2%

Corn Futures: +5.24%

Soybean Futures:  +1.2%

Wheat Futures: +2.4%

After relatively muted price action yesterday, as you can see above, CME grains prices moved higher today.  Revisiting the Wheat options that we looked at yesterday, you can see in the two CVOL graphs below that the options market had a more significant reaction today.  The top graph depicts the CVOL level in Wheat options and the lower graph depicts the skew over the last 3 months.  As you can see, while volatility has risen generally in the Wheat options market, the Calls were bid over the Puts over the last couple of days as well (skew).  

Today's Future Price Action

Traders Resources

The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.

Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.

Past performance is not necessarily indicative of future performance.

CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.

This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

© 2024 CME Group Inc. All rights reserved.