1) Click here for a 2 minute video of Fed chair Yellen’s expectations for the rate the Fed sets.
Fed chair Yellen has confirmed these levels in 3 out of the last 4 Fed meetings. Click here for additional confirmation directly on the Fed’s website; see the FOMC statements and press conference videos
2) Fed’s disclosed levels between now and December 2017
Current = 0.1000%, contract price 99.9000, value = $416.17
Oct 2015 = 0.9100% contract price = 99.0900, value = $3,972
Dec 2015 = 1.1250%, contract price = 98.8750, value = $4,687
Dec 2016 = 2.5000%, contract price = 97.5000, value = $10,417
Dec 2017 = 3.7500%, contract price = 96.2500, value = $15,625
1954-2014 Average = 5.1000%, contract price 94.9000, value = $22,250
Source Federal Reserve Website
3) Fed funds are currently trading at 0.1000% contact value = $416
The Fed’s current target for the Fed funds rate by the end of 2017 is 3.75%
Contract value = $15,624
Click here to enlarge the rate, price valuation chart below, each 0.01 = $41.67
Click here for a current chart and the 1954-2014 historical price data
4) One trade to capture this long term move
Click here for one way we’re capturing the first leg og the move higher in rates including an interactive risk/reward spreadsheet enabling you to experiment with any potential outcome for this trade and/or monitor performance forward.
Click here to enlarge the rate, price, valuation chart below
5) Click here for a 6 minute video to learn how to calculate the difference between where the Market is expecting the Fed Funds relative to where the Fed believes it will be.
6) If you’d like to review other strategies call with this page up or the links below available. Once our review is complete you’ll understand what we’re trading and how enabling you to experiment with any potential outcome for any trade and/or monitor performance forward.
Additional spreadsheets
Fed Funds
22) What the Fed funds rate is and how it’s set
23) Contract specifications
24) Fed funds quotes all deliveries
25) July 2015 25k no hedge
25) July 2015 99.83 25K cost average hedge
26) July 2015 99.82 25K 87.50 hedge
27) July 2015 10K 99.81/99.75 hedge
28) Sep 2015 25k cost average hedge
29) Oct 2015 25K cost average hedge
30) Dec 2015 25K cost average hedge
3 Month
31) What the 3 month rate is and it’s history
32) Contract specifications
33) 3 Month Hedged Cost Average
34) 3 Month Rate September 2015 hedge
35) 3 Month Rate December 2015 hedge
Call for Euro and Asian rate strategies
For additional information/reports on any market listed here call or email.
Regards,
Peter Knight – Advisor
RISK DISCLOSURE STATEMENT
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.
IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
BID/ASK SPREADS, BROKERAGE COMMISSION, CLEARING, EXCHANGE AND REGULATORY FEES WILL HAVE AN ADVERSE IMPACT ON THE NET OVERALL PERFORMANCE OF YOUR ACCOUNT. PRIOR TO MAKING A DECISION TO PARTICIPATE IN ANY INVESTMENT MAKE SURE YOU FULLY UNDERSTAND THE FEES ASSOCIATED WITH TRADING.
THE INFORMATION PROVIDED IN THIS REPORT CONTAINS RESEARCH, MARKET COMMENTARY AND TRADE RECOMMENDATIONS. YOU MAY BE SOLICITED FOR AN ACCOUNT BY ONE OF OUR REPRESENTATIVES OR EMPLOYEES. IT SHOULD BE KNOWN THAT THE REPRESENTATIVES OF OUR FIRM MAY TRADE FUTURES AND OPTIONS FOR THEIR OWN ACCOUNTS OR THOSE OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS MARGIN REQUIREMENTS, RISK FACTORS, TRADING OBJECTIVES, TRADING INSTRUCTIONS, TRADING STRATEGIES, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE LIQUIDATION OR INITIATION OF FUTURES OR OPTIONS POSITIONS THAT DIFFER FROM THE OPINIONS AND RECOMMENDATIONS FOUND IN THIS REPORT.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.
YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES
