Marc Nemenoff
PRICE Futures Group
Financials: Dec. Bonds are currently 9 lower at 154’14, 10 Yr. Notes 4 lower at 125’31.5 and 5 Yr. Notes 2 lower at 118’18. If you shed the extra long 5 Yr. Note from the ratio spread of long 3-5 Yr./short 2-10 Yr. Notes I recommend covering 1 of the remaining long 5 Yr./short 10 Yr. spreads this morning before the Fed announcement at 1:00pm. If you kept the entire ratio spread look for a profit taking opportunity should the market break sharply after the FOMC. I feel that there will be a 25 basis point hike and this will be because of increased GNP and job creation. That being said I feel that further hikes down the road will be dependant on inflation rising over 2.5%.
Grains: Dec. Corn is currently 1’0 lower at 376’2, Jan. Beans unchanged at 867’2 and Mar. Wheat 0’4 higher at 496’6. We remain long Mar. Corn with a protective sell stop at 369’0. The KC/Chi. Wheat spread has moved a bit our way over the last two sessions currently trading at 2’0 premium Chicago. My objective remains at 8’0 premium KC.
Cattle: We remain long Feb. LC and on the sidelines in Feeders. We have taken profits on the long Apr. LC/short June LC spread.
Silver: Mar. Silver is currently 8 cents higher at 13.85 and Feb. Gold 4.00 higher at 1065.40. We remain long. Today could get quite volatile around Fed time.
S&P's: Mar. S&P’s are currently 7.50 higher at 2044.50. I am long the Dec. 2020 put going into the FOMC. For short term trading after the Fed announcement I will be a buyer under 2015.00 and a seller over 2070.00.
Currencies: As of this writing the Mar. Euro is currently 4 higher at 1.0950, the Yen 6 lower at 0.82275 and the Pound 38 lower at 1.5004. We were stopped out with a profit on long Yen positions when the market traded through the 0.8260 level. I am watching the Pound and contemplating the long side on breaks, but not quite ready to pull the trigger so to speak.
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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