stocks

U.S benchmarks are consolidating lower in a healthy manner. The slightest signs of exhaustion crept into the market Friday with the Russell 2000 small-cap index finishing 1% from a new swing high achieved on the opening bell.
Interest Rate option trades we are monitoring today. This structure caught our attention, as being an interesting value trade that was being executed.
The U.S-Iran situation has deescalated, top Chinese negotiator Liu He is set to visit Washington next week to sign the “Phase One” trade deal, the Fed thwarted a liquidity crisis and earnings are right around the corner.
Iran launched more than a dozen ballistic missiles at two U.S-Iraqi airbases in retaliation for the killing of Soleimani. Fear and uncertainty immediately rattled through markets and the S&P lost 1.7% down to a low of 3181, tagging a critical level of support.
 U.S benchmarks shook off Middle East tensions and surged higher on the opening bell yesterday. The S&P turned positive by noon and extended gains into the close.
U.S benchmarks are set to open lower due to mounting uncertainties in the Middle East. Price action digested the killing of Iranian General Soleimani Friday and quickly recovered from session lows despite Iran’s promise to retaliate.
Eurodollar option trades we are monitoring today. This structure caught our attention, as being an interesting value trade that was being executed.
U.S benchmarks are holding steady at record levels after avoiding the feared December 15th tariffs. Although details of the “Phase One” deal remain few and far, we discussed yesterday how an actual deal took a back seat to the potential of new tariffs.
This is the same idea we had back in October which worked well that time, selling US 10-Year Vol (TY) vs Gold Vol, which as you can see here is diverging again.
U.S and China trade relations are the underlying catalyst but there are a number of themes from Wednesday’s Fed meeting to economic data and drama in Washington that have kept Friday’s post-Nonfarm rally in check.