This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Finding Taper Clues in the Interest Rate Market

The video this transcript is based on appeared on December 19.

NEW YORK ( TheStreet) -- Ross Greenspan explains how the interest rate market correctly predicted the Fed's token taper in December and what clues it may be providing for 2014.


Jill Malandrino:
Many traders were looking for a late February/early March taper but the Fed came along yesterday and surprised us with a token taper. Ross Greenspan, a trader in interest rate pit from the floor at the CME Group, you actually called that correctly in mid-November, expecting a token taper before December. What were the clues from the interest rate market and what are we looking for for 2014?

Ross Greenspan:
So some of the clues I suppose were that in the options markets and India futures we started to see some steep interplays at work, sort of bigger than expected and just caught our attention. We saw D five, six. Somebody put on a lot a steep winners. We heard a rumor it was PIMCO. We thought 'PIMCO?' T hey know something so we started to pick our head up about that.

Jill Malandrino:
Right and that's why I feel like it's very important for equity-only investors to look at multiple markets and options and futures particularly with interest rates because that gives you a clue as to what's going to happen S&P overall. So now let's shift focus, what are we looking at for 2014? Where are the trades right now?

Ross Greenspan:
So we gotta keep looking at the interest rate complex. I think the equity market participants were somewhat caught off guard by how the market responded to taper and that's just, I mean I think maybe people were posted position short, expecting the market to sell off. As far as the interest rate complex goes we really gotta wonder how steep are we gonna get and how fast is the Fed gonna keep tapering in January, are they gonna announce another taper? How about March and April? And then one thing I've noticed today is we're really not seeing the thirty-year sell off with the rest of the Treasury complex and so we gotta keep an eye on that. How is the thirty-year gonna stay big going forward and is that eventually going to put a cap on yields on the 10-year?

Jill Malandrino:
Alright excellent Ross, thank you so much. For TheStreet I'm Jill Malandrino.

Written by Jill Malandrino in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs