TWIFO 190: When Correlation Goes to One

  • HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: SEAN SMITH, MD OF DERIVATIVES LICENSING, FTSE RUSSELL
  • CME HOT SEAT GUEST: JEFF WHITT: CO-FOUNDER,  SIMPLY DERIVATIVE

ON TODAY’S EPISODE, MARK, SEAN AND JEFF DISCUSS:

  • CME CLOSING TRADING FLOOR DUE TO CORONAVIRUS FEARS
  • SO MUCH RED ON THE SCREEN THIS WEEK
  • EQUITIES: RUSSELL 2000 LEADING THE CHARGE TO THE DOWNSIDE, BEAT DOW INTO BEAR MARKET TERRITORY BY 2 DAYS
  • ENERGY: WTI/CRUDE OIL – RUSSIA/OPEC PRICE WAR HAS ANNIHILATED CRUDE
  • METALS: WHEN IT ALL HITS THE FAN CORRELATION GOES TO 1. GOLD POTENTIALLY UNDERPERFORMING EXPECTATIONS
  • RATES/FX: EURODOLLAR – THE EURO WEAKENED ON THURSDAY AFTER THE EUROPEAN CENTRAL BANK ANNOUNCED MORE STIMULUS TO FIGHT THE CORONAVIRUS IMPACT BUT DID NOT LOWER INTEREST RATES, WITH THE SINGLE CURRENCY FALLING TO THE DAY’S LOW AS INVESTORS RUSHED FOR DOLLARS.

FUTURES OPTIONS FEEDBACK

  • QUESTION FROM SELAMY: WHY ARE THE SMALL CAPS BEING HIT HARDER THAN THE LARGE CAPS IN THE CORONAVIRUS STOCK MARKET SELLOFF?
  • QUESTION FROM COLBY: WITH GOLD DOWN, IS NOW A GOOD TIME TO BUY? WOULD IT BE BETTER TO BUY OPTIONS ON GOLD?

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