Wild 8:30am June Futs & Opts Settle & Got GOLD?
Equities Reverse Early Gains - Show Signs of Weakness
As we noted in the early AM note, SPX options O/I was high at the 3100 strike and that’s exactly where we sit right now:
With the CMEGroup Futures and Options expire at 8:30am. We aren’t quite sure why that is, why they don’t trade the entire day like all the other options, but serial months (Mar, Jun, Sep, Dec) options settle this way. Anyway the 8:30am cash open marked the very high in the equities today!
Look what happened to June Futures a massive 45 point rally in the final minutes, who got jammed!
Can’t the CME just move serial opts and futures settle to the end of the day?
So with an hour to go the equities seem hampered by more Covid uncertainty, and Apple which announced some temporary closings this from Zhedge and reporting from Bloomberg:
Apple says, is temporarily shutting some of its U.S. retail stores again. The closures will impact 11 stores across Florida, Arizona, North Carolina and South Carolina.
“Due to current COVID-19 conditions in some of the communities we serve, we are temporarily closing stores in these areas,” an Apple spokesman said in a statement.
“We take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams and customers back as soon as possible.”
So with all this, and considering the chart on Gold which we put out this morning, we can’t help but think that a breakout of this $1760 area will usher in a new bull push to $2000:
Even Goldman came out and acknowledged that Gold follows bond prices higher or in this chart, yields lower (inverted) on the chart here:
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