Desayuno with Distressed Volatility for Monday 7/19: First off here are a few news items mostly from my Twitter feed. These events aren't affecting Shanghai, EUR/USD or US index futures so far.
1. BP down 5%+ as FTSE opens, concerns over seepage detected near damaged well - @SkyNewsBiz
2. Hungary Forint Tumbles Most in Six Weeks as IMF Ends Talks With Hungary - Bloomberg
(*Here is Hungary CDS Quote at Bloomberg.com)
3. Ireland's credit rating downgraded by Moodys to Aa2 - Irish Times
(*Here is Ireland CDS Quote at Bloomberg.com)
4. Man buys Europe’s entire cocoa supply, analysts suspect market cornering - National Post
I saw that the 30Y Treasury Bond and US Dollar Index decoupled since mid-June. $USB is up 9.95% and $USD is only up 1.90% over 3-months. The US Dollar Index could eventually test the 200DMA and perhaps bounce at the March high. It's still trading in a descending channel with 50DMA resistance up above.