Welcome back, I trust you enjoyed a lovely and relaxing Easter holiday weekend. It’s actually still going on over here in (catholic) Spain and many other European nations which continue to officially observe Easter Monday. So it’s safe to say that I probably have the questionable honor of being the only person working in Spain today! Well me and the local drug dealers who unfortunately seem to have been replicating like rabbits here in Valencia over the past few years.
It’s been a great first quarter for us all and I propose to spread it around a little and celebrate Easter in style. So how about surprising your little ones with a Fabergé nestegg instead of some crusty old chicken egg laced with industrial Chinese paint. A little too pricey for you or you weren’t able to find $33 Million under your couch cushions? Well, try not to look like a complete loser and at least get yourself a few dozen gold plated chicken eggs at the low price of $138 – each that is. I’m sure for that deal their phones are ringing off the hook right now. Crikey – I’m in the wrong damn business!
I feel rather conflicted about the price action over the past month and quite frankly that’s exactly how I should feel and thus act accordingly. Just take a look at a daily E-Mini chart and compare the March contract (ESH7) with the current front month (ESM7) and tell me what you see.
Apparently the odds of seeing any type of resolution before the long Easter holiday weekend are low (what are the odds I will eat my words on that one?). Which gives me an opportunity to dazzle you guys with some rather thrilling implied volatility (IV) charts. So strap yourself in and make sure you do not extend your hands or legs outside the carriage until the ride has come to a full stop.