Marc Nemenoff
PRICE Futures Group
Financials: Dec. Bonds are currently 15 higher 136’15, 10 Yr. Notes 7.5 higher at 124’14.5 and the 5 Yr. Note 2.5 higher at 118’09.5. CPI (Consumer Price Index) this morning came in at a negative 0.2% vs. expectations of unchanged. Yesterday China added 500 billion yuan ($81billion) in stimulus to the banking system in an effort to keep rates low and spirit economic activity. It was also rumored that the Fed would not change policy, keeping rates at current levels until at least mid 2015. This rallied Bonds and Equities and put some pressure on the Dollar. We are currently on the sidelines. We will now be looking at the Sept. and Dec. 2015/2017 Eurodollar futures spreads. We have taken profits from all Eurodollar future spreads.
Grains: Dec. Corn is currently 2’2 lower at 341’4, Nov. Beans 1’4 higher at 982’2 and Dec. Wheat fractionally lower at 496’0. We may be seeing some sort of bottoming action around the 338’0 level in Dec. Corn and 975’0 in Nov. Beans. I’m willing to try the long side at these levels for short term trades with a 5’0 cent stop in Corn and 10’0 cent stop in Beans.
Cattle: Oct. LC are currently 75 higher at 156.95 and Oct. FC 125 higher at 227.12. We have taken profits from the long Jan./short Nov. FC spread below the 590 level premium the Nov. (currently at 577). We remain long the Oct. LC 148 put purchased last week in the 20 point area +/- 5 points.
Silver: Sept. Silver is currently 3 cents lower at 18.70 and Dec. Gold 1.00 higher at 1238.00. We remain long Silver.
S&P's: Dec. S&P’s are currently unchanged at 1991.50 after rallying sharply yesterday on the Chinese stimulus action and purported leak of FMOC minutes showing no changes in Fed policy keeping rates at current levels for the near future. We remain short with a protective stop at 1998.00.
Currencies: The Dec. Euro is currently 7 higher at 1.2976, the Swiss 11 lower at 1.0720, the Yen 7 lower at 0.9331 and the Pound 54 higher at 1.6320. This weeks vote on Scottish independence will set the tone for the near future. If it should pass will Catalonia, Quebec, Easter Ukraine etc. follow? I do not have clue. My traders instinct says to go short the Euro on rallies above 1.3100, short the Pound above 1.6700 and for those fo you who are more adventurist long Yen/short Euro. We are currently on the sidelines.
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.
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