Greek CDS move above 400 bps, GGBs spread over Bunds moves to new highs. The move in gold continues to be in it’s infancy. I have seen this movie before.

Gold - oil on canvas

This week we will start to hear first quarter earnings results. Before the New York market open Wednesday we’ll hear from Monsanto (MON). After the bell Wednesday Recycling behemoth and steel manufacturer Schnitzer Steel (SCHN) and retail giant Bed Bath & Beyond will report. I haven’t looked at analyst estimates for any of these names. Market volatility is generally cheap here, as is volatility in many individual names. My bias is to own calls and puts into some earnings announcements this month. A quick view of the charts has me reaching to own calls in BBBY and puts in MON. Generally speaking, you can see how the street will react to earnings by looking at the supply and demand patterns before the announcement. As you can see from the charts below, Monsanto (red) is in a downtrend and looks distributive. Therefore, it will likely trade lower after results. On the flip side, BBBY (blue) is in an uptrend and is being accumulated. It will, therefore, likely trade higher.

Trader Art - MON/BBBY Oil on canvas

There are also four US Treasury auctions this week. Keep these times in mind for volatility in currency markets.

Monday: 13:00 EST US Treasury to auction $8 Billion in 10 year TIPS
Tuesday: 13:00 EST US Treasury to auction $40 Billion in 3 year notes
Wednesday: 13:00 EST US Treasury to auction $21 Billion in 10 year notes
Thursday: 13:00 EST US Treasury to auction $13 Billion in 30 year bonds

I wanted to be a part of it so I became it. And the beat goes on.

Martin Sloan is a frazzled executive who learns that you can’t go home again after he steps back in time and meets his mom, his dad - and himself.

Walking Distance
Episode 005
Click for Full Episode (25:21)

“You’ve been looking behind you Martin, try looking ahead.”

Meanwhile, back at The Factory, the internet continues to be the largest communication platform I’ve ever been involved with. If I didn’t own the darned thing, I wouldn’t be where I am–in hiding.

On another note, some noteworthy happenings impressed me recently while speaking to my assistant, Tonya:

–Last week Goldman Sachs downgraded EPS estimates for the banks by 15%.

–The federal reserve hiked interest rates by 25 bps from .50% to .75% on February 19th in a surprise move. Since then, stocks have marched higher while volatility has slunk lower. There are various rumors making the rounds that the fed will repeat it’s actions from February–hike rates by 25bps in another “surprise move.” Moves are moves, but I definitely appreciate surprise moves and use them often.

S&P Futures / VIX

–Ratings agency Standard & Poor’s changed their ratings on Greece last week from negative to stable. Does anyone care about rating’s agencies anymore? Haven’t they been proven meaningless?

–I will be working the Ironman II premier in various locations, including Los Angeles. My client–Ms. Pinky Megiston–is involved with the show so though I’ll be there, absolutely no one will have any idea who I am. After all, not even I know who I am anymore. Whenever I have lost my mind in the past it has always led to bigger and brighter things. This time shall be no different.

Why not? Money is a good thing to have in these twisted times. Even Richard Nixon is hungry for it. Only a few days before the Derby he said, “If I had any money I’d invest it in the stock market.” And the market, meanwhile, continued its grim slide.
-Hunter S. Thompson
The Kentucky Derby is Decadent and Depraved

In Russia, talks of the reserve currency–gold–lurk in the background. Talks are focused on worldwide reserves in the wake of last week’s talks of the IMF buying more physical gold. Russian central banker Ulyukayev commented that Russia would increase the proportion of gold in it’s reserves. Records show that gold makes up 5.3% of Russia’s reserves, up from 4.3% seen back in late November.

Higher and Higher, Baby