US markets rallied over 7% across the board with strong gains in Europe, as Spain and Italy showed slowing growth of Covid-19 spread, whilst New York, the epicenter of the Virus in the US is also leveling.
Over the weekend the the rhetoric from the Surgeon General in the US painted a bleak picture, warning that the US will face one of the worst weeks of the Virus outbreak, while on the other hand positive numbers out of New York suggested the tide is turning. Eitherway the markets surged, and in some respects was entirely expected, going against the bleak weekend warnings, as the momentum continued to build through the day, as the short term bottom seems to be in place.
The ES/YM spread was interesting, as relative ES strength in the morning gave a good opportunity to short the spread, which then saw a nice turnaround coming into the close, as relative strength in Boeing which ended up almost 20% helped the YM outperform, and so a nice 100 tick reversal from the high in the spread.
On the energy front, Crude Oil dropped over 7% as the proposed OPEC+ meeting was delayed due to 'Technical' reasons, putting into doubt the projected oil production cuts, which saw Crude rise sharply last week.
Front month crude calendars, went offered as you would expect, with May-Jun Calendar approaching end of March lows, while Jun20Jul20 calendar appraoches the 50% fib level from the Mar 29th-April 2nd move. The Jun/Jul/Aug 1 month butterly trades back at recent lows, whilst the Jul/Aug/Sep butterfly has consolidated in the -0.40 to -0.30 range.
In general today saw most assets rise, with Gold and Silver up sharply, along with Stocks. Over the past couple of weeks has seen opposing action following a big up move, so it will be interesting to see if that pattern holds tomorrow.
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