Interest Rate Update

Contract valuations to the left on the cash market chart below

Click here to enlarge the rate, price, valuation chart below.
Click here for a current chart, each 0.01 change in rate = $41.67.

Screenshot_318

14) Where the Fed sees rates & when

2 minute Fed video –  Low end of Fed expectations through December 2017

What the move is worth

15) Contract valuations using the low end of Fed Guidance

Current = 0.3125%, contract value = $1,312

Low end of Fed expectations

Dec 2015 = 0.6250%, contract value = $2,604
Dec 2016 = 1.8750%, contract value = $7,812
Dec 2017 = 3.2500%, contract value = $13,541
1954-2014 average = 5.10%, contract value = $22,250
Each 0.01 = $41.67

16) 2 minute Fed video – Median Fed expectations through December 2017

17) Contract valuations using the Median of Fed Guidance

Current = 0.3125%, contract value = $1,312

Median Fed expectations

Dec 2015 = 1.1250%, contract value = $4,687
Dec 2016 = 2.5000%, contract value = $10,417
Dec 2017 = 3.7500%, contract value = $15,625
1954-2014 average = 5.10%, contract value = $22,250
Each 0.01 = $41.67

Fed funds are traded through the worlds largest dollar volume exchange group  the CME

18)  What the Fed funds rate is and how it’s set
19) Countdown to higher rates
20) FOMC meeting schedule
21) The last tightening cycle 2004-2006 from 1.25% to 5.25%
22) Contract specifications
23) Fed funds quotes all deliveries

19) Trading this rate higher requires establishing a short position

24) Click here to enlarge the rate, price valuation chart below
25) Click here for a current chart

Screenshot_308

26) Click here for a risk reward spreadsheet with instructions on how to use it.
This will enable you to experiment with any potential outcome for this trade
or your own risk/reward criteria.

27) I’ll conclude with one question and comparison of trading short term rates from
their current historic lows near 0.00% higher through the end of 2015 to more popular sectors.

What do you think will occur first?

A) The Fed being right about the rate they set and the Fed funds rate moves from the
current anticipated rate for December 2015 delivery from 0.3125% to 0.6125% for
an appreciation in contract value of +100%

B) The same percentage appreciation in any of the alternate markets linked below

Markets and links to quotes Current rate/price Dec 2015 delivery Ending Price or rate Last date at that price & links to charts Increase in contract value
30-Day Fed Funds 0.3150% 0.6250% Sep-13 100.00%
U.S.D. Euro deposit rates 0.6250% 1.2500% Mar-14 100.00%
DJIA 17527.00 35,054.00 Never 100.00%
S&P 500 Index 2054.90 4,109.80 Never 100.00%
Euro Stoxx 50 3500.00 7,000.00 Never 100.00%
FTSE 100 6787.50 13,575.00 Never 100.00%
DAX Index 11435.00 22,870.00 Never 100.00%
Swiss Market Index 8796.00 17,592.00 Never 100.00%
CAC 40 4873.50 9,747.00 Never 100.00%
U.S. Dollar Index $94.7490 $189.4980 Never 100.00%
British Pound $1.5390 $3.0780 Never 100.00%
Canadian Dollar $0.8216 $1.6432 Never 100.00%
Japanese Yen $0.8379 $1.6758 Never 100.00%
Swiss Franc $1.0953 $2.1906 Never 100.00%
Euro FX $1.1202 $2.2404 Never 100.00%
Australian Dollar $0.7705 $1.5410 Never 100.00%
Silver $16.38 $32.76 Feb-13 100.00%
Gold $1,185.20 $2,370.40 Never 100.00%
Crude Oil WTI $65.54 $131.08 May-08 100.00%
Crude Oil Brent $61.33 $122.66 May-08 100.00%

28) There are over 100 liquid interest rates contracts traded globally, one of
my personal favorites is the 3 Month rate contract symbol GE (now the most liquid futures
contract on the board)

29) What the 3 month rate is and its history
30) Contract specifications
31) 3 Month hedged cost average

32) 3 Month credit or debit spread
33) 3 Month option spread
34) 3 Month hedge Dec 15 cost average  

For questions or additional reports for any market listed on the exchanges
below contact me

35) US CME
36) Eurex

37) Euronext
38) Osaka 

39) My team can establish and monitor all positions according to your
investment criteria,  click here for more information

Open An Account

40) DFX opening instructions
41) Clearing and Exchange Members for larger accounts

Additional Information

42) The world’s largest dollar volume exchange group
43) Clearing and Exchange Members
44) CME videos
45) Getting started
46) Due Diligence and how your funds are protected
47) Commodity Futures Trading Commission 

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Click here for contact details

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RISK DISCLOSURE STATEMENT

Program availability is dependent on your country of residency; assets, experience and net worth please contact us for details.

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 PRIMARY ASSETS MANAGEMENT OR ONE OF ITS REPRESENTATIVES OR EMPLOYEES. IT SHOULD BE KNOWN THAT THE REPRESENTATIVES OF PRIMARY ASSETS MANAGEMENT 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. YOU SHOULD READ THE “RISK DISCLOSURE” WEBPAGE ACCESSED AT THE TOP OF THE HOMEPAGE. PRIMARY ASSETS MANAGEMENT IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE.

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Asset Investment Management

Family Office, Advisors

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