An update to the last blog: I’ve sharpened my pencil to post tighter bid/ask spreads on the expiring Aug 2016 contracts. (Other traders have also contributed. Thanks!) Trading ends today at 3PM (New York) BEFORE the markets close at 4. As recapped in the last blog, the non-seasonally adjusted index values released tomorrow will be the settlement values used to value any open positions (only 8 contracts).
Bid/ask spreads on all 11 contracts are now <= to 1 point. The CME quotes are consistent with large month-on-month gains. Prices on the western contracts (e.g. DEN, LAX, SDG and SFR) are consistent with strong year-over-year HPA, while NYM and WDC prices reflect lower HPA.
I’m open to facilitating any trades (or combination trades, e.g. HCI vs. LAX, or BOS vs. NYM). Please feel free to contact me at email@example.com.