Marc Nemenoff
PRICE Futures Group
Financials: Dec. Bonds are currently 11 higher at 137’02, 10 Yr. Notes 4 higher at 124’13 and 5 Yr. Notes 2.7 higher 118’07. These markets are higher this morning in a “flight to safety” as traders jump out of equities due to slowing economic numbers out of Europe and China and the initiation of a U.S. led coalition bombing of ISIS in Syria. For the first time in a while I’m not committed to the sell side of the market and am looking at the June 2015/June 2017 Eurodollar futures spread as a trading vehicle between buying the 2017/selling the 2015 at 206-210 premium the June 2015 and going the other way on the spread under the 192 premium the June 2015 contract. Treat Dec. Bonds as a trading affair between 135’24 and 138’20.
Grains: Dec. Corn is currently 2’4 lower at 327’6, Nov. Beans 1’0 higher at 939’2 and Dec. Wheat fractionally lower at 476’4. Downtrends continue as the market expects record crops in Corn and Beans. We have tried picking bottoms to no avail and are currently on the sidelines.
Cattle: Oct. LC are currently 22 lower at 155.275 and Oct. FC slightly higher at 229.35. We remain long the Oct. LC 148 put and have lowered our expectations and will liquidate above 40 points if the market allows as time is starting to run out.
Silver: Dec. Silver is currently 5 cents higher at 17.825 and Dec. Gold 9.00 higher at 1227.00. We remain long a small position in Silver. I’d like vto reiterate that my recommendation is for a long position equivalent to 3-6% of your overall portfolio value by using the equivalent of the contract value. For short term trading treat Silver as a trading affair between 17.55 and 18.25 using sell stops just below the 17.30 level to protect any new long positions. I will be a buyer on breaks in Gold with a protective sell stop at 1202.00.
S&P's: Dec. S&P’s are currently 6.00 lower at 1980.25. Once again I’m selling rallies with an initial protective buy stop just above the recent high of 2013.00. If the market trades below 1974.00 either take profits or lower your stop to the 1974.00 level. Support is currently 1954.00.
Currencies: As of this writing the Dec. Euro is currently 45 higher at 1.2890, the Swiss 45 higher at 1.0681, the Yen 19 lower at 0.9216 and the Pound 46 higher at 1.6391. I feel that for the moment the market is going sideways in the Euro and for the first time in many months I have no particular bias in the Euro and will treat as a trading affair between 1.2810 and 1.3010. I still like the idea of looking for an opportunity to be spread long Yen/short Euro but I’m not yet ready to pull the trigger. I will be a seller in the Pound above 1.6700.
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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