Marc Nemenoff
PRICE Futures Group
Financials: Mar. Bonds are 3 lower at 157’04, 10 Yr. Notes 3 lower at 127’02 and 5 Yr. Notes 1.5 lower at 119’06.7. The market awaits this weeks FOMC’s decision on interest rates which the “trade” expects to rise. Comments by Mario Draghi of the ECB took Bonds off their lows as it was reiterated that he will do whatever it takes to stimulate European economies and feels they will hit their target of 2% inflation. I still hold the ratio spread of long 3-5 Yr. Notes/short 2-10 Yr. Notes. For those of you with a greater risk tolerance you might consider selling out of the extra 5 5 Yr. note as this market is now in resistance. The spread is currently at a $350-$400 loss.
Grains: Mar. Corn is currently fractionally lower at 375’0, Jan. Beans 2’4 lower at 868’2 and Mar. Wheat 1’6 lower at 489’0. If you remain long Mar. Corn either take profits or raise your protective sell stop to the 369’0 level. The Mar. KC Wheat/Chi. Wheat spread is currently at 6’6 premium the Chi. Contract. My objective remains at 8’0 premium KC.
Cattle: Live and Feeder Cattle remain under pressure but have rallied 3.00 off their lows with the Feb. LC closing out the week at 125.90. We remain long. The long Apr. LC/short Jun. LC spread has met our near term objective of 8.40 premium the Apr. having traded as high as 8.75. Look for profit taking opportunities.
Silver: Mar. Silver is currently 16 cents lower at 13.73 and Feb. Gold 6.00 lower at 1070.00. We hold a small (mini contract) position and will NOT consider adding at this time unless Silver trades above 14.75.
S&P's: Mar. S&P’s are currently 5.50 lower at 1996.25. Thye market on Friday closed below the 200 day moving average and by my standard is now in Bear territory. I am a seller on rallies and will be a buyer of puts in an effort to hold a position. Be aware anything can happen when the FOMC minutes are released later this week. Support is currently 1980.00.
Currencies: As of this writing the Mar. Euro is currently 9 lower at 1/1011, the Yen 5 higher at 0.8306 and the Pound102 lower at 1.15129. If you remain long the Yen either take profits or raise your stop to the 0.8252 level.
EXTRA: Start thinking about the long side of Nat. Gas.
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The valuation of futures and options may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or implied promise, guarantee, or implication by or from The Price Futures Group, Inc. that you will profit or that losses can or will be limited whatsoever. Past performance is not indicative of future results. Information provided on this website is intended solely for informative purpose and is obtained from sources believed to be reliable. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Recommended Content
Editors’ Picks
The Federal Reserve lowered its rates by 50 bps - LIVE
The Federal Reserve reduced its Fed Fund Target Range (FFTR) by 50 bps to 4.75%-5.00% amidst a divided consensus at its gathering on Wednesday.
EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision
EUR/USD now picks up extra pace and revisits the 1.1180 region after the Federal Reserve decided to cut its interest rates by 50 bps at its event on Wednesday.
GBP/USD hits fresh tops near 1.3300 on weaker Dollar
The Greenback is now accelerating its decline following the Fed’s decision to reduce its interest rates, sending GBP/USD to fresh tops in the 1.3290 zone.
Gold clinches a record high near $2,600 ahead of Powell
Prices of Gold gather extra steam and hit an all-time top near the $2,600 mark per ounce troy as investors continue to assess the 50 bps rate cut by the Federal Reseve and warm up for the usual press conference by Chief Jerome Powell.
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut
The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.