Given the backdrop, there was a surprising lack of overnight activity. Futures zig-zagged in a relatively tight range of 5.5-6.0 ticks for the remainder of the session.
With most of the focus on overnight financing, Eurodollar futures proceeded to trade in a 5-6 tick range across most expirations. Most of the action was focused on upside structures, except for one prominent trade.
Surprisingly quiet overnight, given the backdrop of oil news. Less than 100K options traded overnight. Futures also moved within tight ranges, the bulk of the expirations had just a 5.5 tick range. No real economic numbers and waiting for fed kept things tame throughout the session.
Trades we are monitoring today. Volatility in Eurodollar (rates) looks very vulnerable despite falling last week. It still is an attractive sell.
Futures moved higher before the pit open on as the ECB cut its main rate and Draghi outlined their QE plan.
A lackluster session with minimal overnight activity. Strong PPI numbers did little to move the market as futures made their ranges within a couple of hours of the equity open.
Futures continued their move lower, following equity strength on the back of China-related trade news. A lack of economic numbers and the Fed blackout period led to a lackluster trading session.
Trades we are monitoring today. This is a good structure to checkout for a way to short volatility at these levels, the trade closed around -25.51 on Friday.
Futures trended down overnight before finding a bid after the NFP number, moving from lower on the day to slightly higher. The market traded in a tight range for the remainder of the day as the response to Powell was minimal.
Futures hit their lows early in the overnight session on trade war news and traded sideways until a strong ADP number moved them lower.