Futures had big ranges this week. Highs were put in on Sunday/Monday as Fed cut rates to 0-25 bps. Hectic trade as traders scrambled to cover risk and position for further Fed stimulus as the COVID-19 pandemic continues.
It appears as though the interest rate market has reached a point of exhaustion. Much quieter the last few days with in-the-money call liquidations a continuing theme. Big ranges are still being seen in most contracts, mainly taking cues from equities, virus updates and now oil news.
Massive Eurodollar Option volumes were driven by the only thing that matters right now, virus updates. Futures rallied straight up into the equity open and then followed the stocks lead for the rest of the session.
Futures put in their session lows early in the overnight session and trended higher all morning. After equities opened, futures took their clues from equities and continued to move higher throughout the session, closing at or near their highs.
Little new information out of China kept futures markets in check following an extended US weekend. Futures trended up overnight, then down into equity open and up again for the remainder of the session.
Futures traded in a relatively tight range for most of the day. Most futures had a trading range of 5 or fewer ticks. With little economic data and the second day of Powell’s testimony before the Senate banking panel...