EM- in the very short term, a measure of the risk appetite of global liquidity. Treasury yields measure this also, but EM is more global. EM is the most active contract on the planet. Over the last few days, its been climbing indicating a flight to safety. On Monday, it decreased, signaling renewed risk appetite. Stocks all over the world were up Monday. On Tuesday LIBOR decreased (EM increased) signalling risk aversion.
http://stockcharts.com/c-sc/sc?s=$XED&p=D&yr=0&mn=1&dy=0&i=t64285787841&r=1853.png
A lot of posters have been wondering if non-US excess liquidity can come to the rescue of the US stock market. Well, EM should tell you that.
Do you have this indicator on your IB screens ?
Started by
kaiser soze
, Jul 31 2007 09:19 PM
2 replies to this topic
#2
beta
-
- TT Patron+
- 4,093 posts
lasergirl
Posted 31 July 2007 - 11:42 PM
Great point -- and thanks for the heads up on the GS puts this am (got 180s).
Hope to see more of your posts.
Edited by beta, 31 July 2007 - 11:43 PM.
"Daytrading -- An Extreme Sport !"
#3
kaiser soze
-
- Traders-Talk User
- 884 posts
Member
Posted 01 August 2007 - 12:57 AM
Thanks for the kind words, Beta.
Things are shaping decently for us put holders but intraday i think it will be a rollercoaster with GS to test our resolve. Thinking of adding to my put positions tomorrow by selling call spreads to collect rich premium instead of paying up for costly puts. Just thinking aloud here.
