Ready To Walk On The Wild Side?
As we get set to begin what is certain to be a wild week, perhaps we should let Lou Reed set the tone.
Much wailing and grinding of teeth over the weekend regarding the confusing series of announcements from the CME. First, they said they were going to increase maintenance margins to initial margin levels. This would have had an immediate, across-the-board impact on commodities. Then, as if correcting a typo, the CME reversed course and, in a subsequent release, decided to decrease initial margins to maintenance margin levels. Are you confused yet? Maybe that was the idea. What a clueless bunch of delta-bravos they are.
At any rate, instead of a margin hike, we've kind of gotten a margin cut in that it will now take less money to initiate a position. Will this matter much? I suspect not but, at a minimum, at least we're not expecting the huge selloff tonight that many were fearing 48 hours ago. And maybe, just maybe, with this small cut in initial margins and the removal of some of the concern regarding MFing Global, maybe just maybe we can have an UP week. Here are your charts:
And lastly, a couple of items from Eric King. First, a quick interview of Andy Maguire (yes, he's a real person):
Then, if you haven't already, please take the time to listen to Eric's interview of Bart Chilton.
And, of course, every time I mention Bart Chilton, I can't help but think of Alex Chilton. Here's your link:
Chill and be cool. See you Monday. TF
9:45 am EST UPDATE:
We're off to a hot start in what promises to be a crazy, f'd up week. We've got Greece, Italy, comet flybys, disaster drills, IAEA reports....you name, it's coming! Look for lots of volatility.
Speaking of which, here are some levels to watch. Again, these are levels where I anticipate EE capping of price. If no selling emerges, the metals will proceed on to the next defined level.
Have a fun day! TF