John Netto - Chief Investment Strategist - A few weeks ago we put on Feb/March Calendar spreads on the Yen  by buying the 115 March calls and selling the 115 Feb calls. We also sold the 110 Feb puts and bought the 110 March puts. The feb legs of this spread expire Friday and since a large porti ... Read more

Widening Sovereign Spreads and “Re-Coupling” are Dominant Themes on Inauguration Day As President Obama took the oath of office, the weakness in global equity markets, dollar bloc crosses, and corresponding strength in the fixed income market rang feelin ... Read more

9:32 PM ET – With the S&P 500 testing key technical support near the 815 area in the middle of the trading day, and the market not responding well to the ECB’s rate decision and subsequent comments by Trichet, one couldn’t be blamed for sensing the ominous palatable feelin ... Read more

Deflation/Risk Aversion Start to Tighten the Noose… The weakness seen in Ags, metals, energies, equities, commodity currencies, and strength in the dollar brought back vivid memories of the financial malaise seen throughout Q3-Q4 of 2008. The question as tra ... Read more

The combination of the sell off in USDJPY (Dollar/Yen Cross), S and P 500 closing on its weekly lows, small caps underperforming large caps, and the wide spread between short term implied volatility and the 3 month realized volatility all suggests this could be an ugly week fo ... Read more

Preface A spectre is haunting Markets – the spectre of illiquidity, frozen credit, and the failure of financial models. Beginning with the 2007 collapse in subprime mortgages, financial markets have shifted to new regimes characterized by violent movements, epidemics of cont ... Read more

The currencies and commodities once again took center stage in the trading world as equities continued to exhibit a lackluster and lifeless trading range. A whole host of currencies bucked this trend and provided great two way action as dollar strength in the European session gave way to the dolla ... Read more

The first Monday of the New Year saw a late Christmas gift for dollar bulls as the EUR/USD came under pressure early and often. EUR/AUD (highlighted as a short trade in our 2009 Preview) took a 600 pip haircut. This coincided with a nice sell off in the long end of the curve a ... Read more

Netto’s Numbers 2009 Preview: Structuring and Spreading… In the wake of the bloodiest and most volatile year in decades, much of the trading and investment public is confronted with two prominent ideologies. The first being this record sell off is creating lifet ... Read more

I am going to be on the road for the next two weeks and wanted to wish my Trading Markets family a warm and happy holiday season. While I only restarting blogging a short time ago, I have enjoyed the opportunity to share information with you. I will spend the next 10 days putting together a composit ... Read more