Wednesday, May 31

Today marks the second day of economic withdrawal, with all major indices and crude oil down. As volatility rose, gold prices have started to tick a little higher. Today’s drop may have been driven by disappointing housing and regional manufacturing data, despite strong Chinese economic reports.

Tomorrow’s activity will be driven by this afternoon’s release of the Fed’s ‘beige book’ – a comprehensive ledger of business activity meant to be used as part of the next monetary meeting between June 14 and 16. Expectations are rising that interest rates will rise again after this meeting, but we’ll know more about that this afternoon.

Our position in US Steel has already crossed the strike price of the call options, meaning our return would be capped at 9.14%. This far from expiration it is unlikely that the contracts will be assigned, but it is encouraging to see this upward movement despite weak manufacturing data and an otherwise market down day.

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