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How Warren Buffett Uses Options

By: Russell Rhoads


Back in 2008, as the financial world was falling apart, the business media loved to quote Warren Buffett’s comment about derivatives from Berkshire Hathaway’s 2002 annual letter. However, that line has been taken completely out of context to fit the needs of market commentators or derivative critics. The specific line appears below –

“In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal”

CHART VIEW – Interest Rates

By: Jeff Gilfillan


Interest rate futures are trading in the middle of the February 2018 range as of this writing following the CPI report on 03/13/18. Post CPI report high was 144’15 which fell just below the beginning of March’s high at 144’20.


The bounce from late February lows in the futures has been supported by an impressive base built immediately following the volatility heavy days from Feb 2-7th. Upside target levels are 145, 146 them 148 level in June 30 year bond futures. Long term support levels are 142’20 and 141’10.


CME: Trade TOPIX Futures Today

Access more of Japan's top stocks in one trade

TOPIX futures (Bloomberg: TPYA <Index>) are now available to trade on CME Globex, representing the first major listing of yen-denominated TOPIX futures outside of Japan.
The launch of TOPIX futures offers you another tool to help manage your Japanese index exposure, and the availability of Basis Trade at Index Close (BTIC) functionality provides you greater efficiency and flexibility.

CHART VIEW – E-mini S&P 500 Futures

By Jeff Gilfillan


The systematic selloff in the ES that started 2 weeks ago is a healthy reminder that a strong bull market is not sustainable without tests or corrections. While an official correction by definition in the ES on a closing basis has not occurred yet, the intraday move was over 10% from high to low.

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