A bit of Macro updates as we get into CPI day today.

Oil Market

The Energy Information Administration (EIA) disclosed an unexpected increase in crude oil inventories, amounting to 1.34 million barrels. This rise was attributed to a decrease in exports and reduced processing by refineries in the previous week.

Additionally, for the first time in three weeks, there was an increase in stockpiles in the Gulf region. This could be linked to refiners restocking inventories that had been reduced to dodge year-end taxes in the previous year.

This restocking activity has had a positive impact on the physical prices of West Texas Intermediate (WTI) for January delivery, and this trend might persist in the upcoming weeks.

Treasury Option activity

An investor in the iShares 20+ Year Treasury Bond ETF (TLT) seems to have executed a strategic trade involving options.

He purchased 10,000 contracts of a call option with a strike price of $98.50, set to expire on January 19. Simultaneously, they sold an equal number of call options with a strike price of $102, expiring on March 15.

This trade suggests an anticipation of a decline in bond yields over the coming week. CPI According to a Bloomberg survey, economists anticipate that the core consumer-price index, which excludes food and energy costs, will reflect a decrease to 3.8% for the 12-month period ending in December.

Finally shortly we will be releasing a new Macro Trading Room within our Premium Membership to help you analyze data to make more data driven trading and risk management choices.

Q-Levels

Lastly let’s look at the levels for yesterday on SPX. The price showed momentum at the break of our GEX Level and bounced back at the hit of the 1D Exp Move Max.

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