Track us trading US short term rates higher

1) Current position

  • In at 0.5500 position value $5,500
  • I’m expecting the price to increase between now and June 2018
  • Current price 0.5900 value $5,900 up 7.27%.
  • Click here to enlarge the chart below


2) To Track the outcome of today’s Fed decision on this position

If today’s action goes against me I don’t believe it will be more than 0.10 = $1,000 and I’ll maintain this position, I may even add to it if it goes down by 0.15.

If I’m correct between now and June 2018 this position will increase in value from $5,500 to $12,500, if Fed Chair Yellen is right, from $5,500 to $17,500.

3) Fundamentals

4) Fed Chair Yellen’s  last Fed statement (Prior to today) on where rates will be and when. 

  • 1.40% December 2017 (0.25% in rate hikes)
  • 2.10% December 2018 (0.95% in rate hikes)
  • 2.70% December 2019 (1.55% in rate hikes)
  • 2.90% December 2020 ( 1.75% in rate hikes)

5) Resources

6) Top 3 ATA programs 

Program Disclosure and Performance links 2015 2016 2017
1) Gold 2005-2017 55.56% 74.57% 131.30%
2) S&P 500 2007-2017 225.15% 125.00% 113.83%
3) Currency 2007-2017 43.87% 60.71% 51.38%

If you have any questions contact us or send a message

Regards,
Peter Knight Advisor


Disclosure

Trading The Platinum-Gold Spread

  • Gold is trading at a $352 premium to Platinum.
  • Each $1.00 change in the spread price = $100.00
  • How to capture the trends in this spread.
  • The instruments we’re trading
  • Links to generate trades and monitor performance

Historical chart showing the difference between Platinum & Gold 25 November 1977 through 12 December 2017.

Screenshot_11

Contracts Traded
Platinum futures are traded in 50 troy ounce contracts
Gold Futures 100 troy ounce contacts

Trade the contact delivery months with the highest volume.
Platinum Quotes & Volume  (Jan. 2018 has the highest volume symbol PLF18)
Gold Futures Quotes and Volume ( Dec. 2017 highest volume symbol GCZ17)

If you believe Gold will continue to gain on Platinum

  • Buy 1 Gold futures contact GCZ17 (long 100 troy ounces)
  • Sell 2 Platinum futures contracts PLF18 (short 100 troy ounces)

If you believe Platinum will gain on gold

  • Sell 1 Gold futures contract GCZ17 (short 100 troy ounces)
  • Buy 2 Platinum Futures contract PLF18 (long 100 troy ounces)

Historical chart showing the difference between Platinum & Gold 25 November 1977 through 12 December 2017.

Screenshot_11

One simple way to determine the direction of this spread is using a Moving Average Exponential (9). I’m a long-term trader so I use the monthly,

  • If price action is above the red line buy 2 Platinum, sell 1 Gold contract
  • Below the red line Sell 2 Platinum, Buy 1 Gold contract
  • Each $1.00 change in the spread’s price = $100
  • Allow $0.75 to cover all bid/ask spreads and brokerage fees ($75)
  • Put up $25,000 per position, in order to lose your deposit, the spread
    would have to move against you by $250.00

To monitor this strategy use this chart to determine direction,  if price action is above the red line buy Platinum, sell Gold, below sell Platinum buy Gold.

Screenshot_13

Currently you should be short Platinum, long Gold premium 301 to Gold

Use this 15-minute chart to monitor profit or loss, each $1.00 change in the spread equals $100.00. Current trade short Platinum, long Gold premium $301 to gold, current price $352 premium to gold or plus $5,100 per position.

Screenshot_16

Exchange information on the Platinum/Gold spread

I’m looking forward to an exciting year and major market moves in metals.

Send us a message or  schedule an online review  to speak with a broker who’ll  answer all your questions and provide supporting links for additional information and/or verification.

Regards,
Peter Knight Advisor
Contact Information

Disclosure

 

 

Exchanges Traded & Links to their Websites

Exchange & Website Links Location
ASX  (Australian Stock Exchange) Australia
BATS Options USA
BM&FBOVESPA Brazil
BME (Madrid Stock Exchange) Spain
BOX (Boston Options Exchange) USA
CBOE (Chicago Board Options Exchange) USA
CBOT (Chicago Board of Trade) USA
CME (Chicago Mercantile Exchange) USA
CSE (OMX Copenhagen) Denmark
DCE  (Dalian Commodity Exchange) China
DGCX (Dubai Commodity Exchange) Dubai
DME (Dubai Mercantile Exchange) Dubai
EURONEXT Amsterdam The Netherlands
EURONEXT Brussels Belgium
EURONEXT Lisbon Portugal
EURONEXT Paris France
FSE (Frankfurt Stock Exchange) Germany
HKEx (Hong Kong Exchanges) Hong Kong
HSE (OMX Helsinki) Finland
ISE (International Securities Exchange) USA
JSE  (Johannesburg Stock Exchange) South Africa
LSE (London Stock Exchange) UK
MEX (Mexican Stock Exchange) Mexico
MIL (Milan Stock Exchange) Italy
MOEX (Moscow Exchange) Russia
NSE (National Stock Exchange of India) India
NASDAQ Options Market USA
NASDAQ USA
NYMEX (New York Mercantile Exchange) USA
NYSE (New York Stock Exchange) USA
NYSE ARCA USA
NYSE AMEX USA
NYSE (Ice) USA
NYSE MKT USA
OSE (Oslo Stock Exchange) Norway
SHFE Shanghai Futures Exchange  Shanghai
SGX (Singapoer Exchange) Singapore
TSE (Tokyo Stock Exchange) Japan
TSE (Toronto Stock Exchange) Canada
TSX (Toronto Venture Exchange) Canada
UE (Ukrainian Exchange) Ukraine
VIE (Vienna Stock Exchange) Austria
ZCE (Zhengzhou Commodity Exchange) China

For more information on the sector(s) of your choice complete this form

Regards,
Asset Investment Management
Contact Information

Disclosure

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Click here to schedule an online review.

Regards,
Peter Knight


Disclosure