Saturday, March 23, 2013

ALERT: 900 Million Euro PUT, betting that the Euro will crash within 2 weeks, Rocks the FX Market

A EUR900 million trade rocked the London options markets this morning.
The two- week put on the euro against the U.S. dollar stood out as options trading in EUR/USD has been quiet this year due to the range-bound nature of spot, according to traders in London.

The put was struck at USD1.2800 when volatility was at 9.8%. One senior trader in London noted that recent concerns over the stability of Cyprus have now fuelled activity.

*Term Structure*
*EUR/USD*     *Fwd Rate*     *Fwd Pips*     *ATM Vol*     *25d RR*     *25d Bfly*
Spot:  1.2927/28
1W     1.29276/88     0.7/0.10     10.025     -0.95     0.15
1M     1.29298/311     3/3.2          8.975     -1.2        0.15
2M     1.29330/41      6.1/6.3        8.95       -1.35     0.2
3M     1.29359/70       9/9.2          8.95       -1.45     0.2
6M     1.29457/73     18.8/19.4     9.05       -1.6      0.25
9M     1.29570/88     30.1/30.9     9.239     -1.65     0.3
1Y     1.29679/724     41.1/44.6    9.35      -1.7       0.3
/Source: SuperDerivatives SGX/

Strategists at Credit Suisse noted that EUR/USD is likely to remain sensitive to Cyprus in the near-term. “We remain of the view that the likelihood of a systemic outcome is low, and as such maintain a medium-term bullish view on the euro.”

Martyn Harrison, fx options sales/trader at Marex Spectron in London told /DI/ EUR/USD one-year cross-currency basis swaps have rebounded from -28.9 basis points to -25 basis points following the large moves over the last couple of days.

“We see dips to 1.2806 technical support as a potential buying opportunity,” wrote fx strategists at BNP Paribas in a report. They noted that the currency pair still face significant headline risks, but
appear relatively cheap relative to the euro periphery-core bond yield spreads.

Two-week realized volatility on EUR/USD sat at 7.5% during London afternoon trading, while two-week implied was 9.3%. EUR/USD spot was USD1.2915 at press time.

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Richard Russell – Stocks, Fed & Gold Shorts To Get Squeezed

from King World News
After the Fed meeting and the Cyprus fiasco, today the Godfather of newsletter writers, Richard Russell, came out and said the gold belonging to the United States may be missing, and that gold-haters are about to pay. He also discussed Bernanke, stocks, the Fed and more. Below is what Russell had to say to subscribers:
“I just heard Bernanke’s latest interview. He said that the economy is improving, just as he had expected. And he said further, that the Fed will continue their “open spigots” policy, which includes buying $85 billion worth of assorted bonds each and every month. Plus, of course, the zero interest rate policy. And hey you poor broke slob, if you don’t like the zero policy, then go buy some stocks or better still, buy a house, because Bernanke is dedicated to driving almost everything that moves or doesn’t move, higher and higher.
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The American Dream - 2010

 All of us Americans strive for the American Dream,and this film shows you why your dream is getting farther and farther away.Do you know how your money is created?Or how banking works?Why did housing prices skyrocket and then plunge?Do you really know what the Federal Reserve System is and how it affects you every single day?You will be challenged to investigate some very entrenched and powerful institutions in this nation,and hopefully encouraged to help get our nation back on track..

We need your support to continue to fight the lying liars! It is very expensive to make this level of media and we are going to need help to keep making it! "Any donations are appreciated! Please Consider Buying a copy @

Donations and sales will help with production costs,further marketing of the film and hopefully will lead to other similar informative Films being made.


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Martin Armstrong: The 224 Year Cycle of the USA

us-224 cYCLE 2013
Copyright March 21, 2013, All Rights Reserved
by Martin Armstrong
The European Central Bank (ECB) effectively said they were unwilling to continue providing emergency liquidity to Cypriot banks and would not guarantee funding beyond Monday, unless a bailout deal emerges. This is just astonishing because tomorrow, March 22, 2013 is the end of the American Era for it is the peak in the sphere of American influence. Cyprus is being forced to invite in Russia and this will be an amazing turning point. I said at the Sovereign Debt Crisis Conference I would be stunned if something took place precisely on this daily target. It looks like this is THE event of all time and is the start of the rise of Russia to the world stage. It may be like the assassination of the arch duke that started World War I. (more)

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Picking a Junior Gold Company in a Bad Market

by Richard (Rick) Mills
Ahead of the Herd

The current investment market for junior gold companies is arguably one of the worst since the United States went off the Gold Standard in 1971.
Despite the current high price of gold (and many other commodities), investors have almost abandoned the junior gold mining sector to invest in physical bullion, ETF’s, and producing companies. The value of the TSX-Venture Composite Index, shown below, is similar to what it was in the early 2000’s when the price of gold was below US$300 per ounce.
In 2013 I expect to see the equity market in the junior gold sector begin to correct itself and investors should currently be taking advantage of the investment opportunities resulting from the severely beat up junior sector. There presently exists a great opportunity for those investors who are “ahead of the herd” and want to invest in the market at or near the bottom.
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Warehoused Asian Copper Hits Record High / By Tyler Durden /
Pardon this brief tangent from the hypnotic, sclerotic, quixotic, Cypriotic situation which will get no resolution today, or tomorrow, and may at best be resolved on Sunday night following yet another coordinated global bailout, (although our money is on a last, last minute resolution some time on Monday when Cyprus is closed but the European markets are widely open), but as it highlights a key follow up to our article from two days ago, “Dr. Copper’s Deja Vu” it is worth being aware of a rather particular problem in Asia right now. A rather well-known problem for those who have tracked the warehousing woes of assorted industrial medals in China as an indication of the true state of the Chinese economy: as of right now, the stocks of copper in Asia (as determined by deliverableLME CLS and Shanghai copper) are at an all time high and up 90% from the previous three year average.
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Notes From Jim Sinclair Meeting In New York City

Dear friends and clients of AFE,

Yesterday Jim Sinclair spent over 5 hours in a question and answer session in New York City. He covered the implications of Cyprus proposing to confiscate as much as 10% of depositor wealth directly from bank accounts, as well as his views on a wide variety of subjects related to gold.

Mr. Sinclair is a 50 year veteran of the gold markets, and one of the most respected voices in the gold community. While we do not always agree 100% with Mr. Sinclair’s views, my personal observation is that he is genuinely concerned for the well-being of others when it comes to wealth preservation through gold.

What follows is a summary of what Mr. Sinclair had to say on these issues. Please bear in mind that this is being re-constructed from hand notes. If a phrase appears in quotes, it is verbatim, otherwise I am paraphrasing.
According to Jim Sinclair:
The announcements that Cyprus put forward a proposal to force depositors to pay for bank bailouts directly has created a global uproar, and the backlash will have a substantial effect on the gold market. Sinclair considers this a major turning point in the gold market, and herald’s gold’s next major up leg.
Sinclair’s comments on various gold related subjects:
There are three phases left in this bull market. Now-2014, 2015-2017, 2018-2021
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Gerald Celente: Cyprus Looting Is Only The Beginning For Global Elite

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