I continue to believe that while traders may approach outright markets with some caution that they can be more aggressive when expressing views of relative performance. That is, they may not have a precise view about how much the LAX indices might rise over the next year or two but … Read More
I had promised in the monthly recap for February to update a table of the HCI/CUS (10-city index) calendar spreads for the November expiration series. Here you go.
Understanding calendar spreads is critical to trading housing futures, as the spreads a) serve as a great tool for expressing views on … Read More
The weighting for Case Shiller composite indices (e.g. CUS 10-city, referenced in the CME contracts) may be adjusted 2- 3 years after the 2010 census, per the Case Shiller index methodology. I raise this notion to: 1) increase awareness, 2) minimize concern, and 3) invite those who better understand index … Read More
The CME announced yesterday (Aug 27th) that they will be changing the trading hours for the Case Shiller futures starting Tuesday Sept 3rd. Contracts will be open to trade from 8:15 AM -3 PM (Chicago hours, or 9:15 AM to 4 PM for those of us in the New York … Read More
Having addressed the technical FAQs in a recent blog, I’d like to address the most important FAQ: Why haven’t there been more volume in the CME Case Shiller futures?
In discussions with various interested parties over the past three years I’ve received lots of push-back as to reasons they won’t … Read More
One of my conclusions from how the markets reacted over the last week is that I need to spend more time marketing, and less energy market-making (in some of the contracts with less interest). It is important that more people feel comfortable in using the product. With that more bids … Read More
If inter-city spread trades are going to be a focus for 2013 then it might help to explain what they mean. That was the “constructive criticism” from one reader. Point noted.
Let me use a rivalry that New York traders might relate to: New York vs. Boston. After all saying … Read More
I’ve mentioned before that I think inter-city spread trading might be the key to growing volume, liquidity and interest in the CME Case Shiller futures for 2013. Here’s some quotes for the Nov 2015 contracts:
Recall that the bid side of an inter-city spread is the front contract minus the … Read More