September 12, 2016
As I have been writing for some time now, I believe the USA is in a full blown recovery and growth mode…As always, I might be dead wrong…but for my own money, I therefore have ZERO DOUBT that Interest Rates are going higher…and that the Eurodollar Futures contract I continue to buy puts on is going SUBSTANTIALLY LOWER.
AGAIN….I might be dead wrong, and if I am, it will mean losing money, but I see this as an opportunity to make a MAJOR HIT in the markets…and am personally pursuing it as such…and at the end of this newsletter are some numbers I would suggest you seriously consider…
But first, here are a few charts I see as strong “evidence” the economy IS solidly expanding…and that there is NO FURTHER REASON WHATSOEVER for rates to remain at their current historically low levels.
Here are a few charts of a fairly important industry…
The point with those FEW charts is: I think anybody who thinks we still “need” low rates…for one more day even…has their head stuck in the sand…
I keep writing it: When the Fed makes it official…raising rates…is irrelevant. The FUTURES markets virtually always makes its move AHEAD of the Fed…and that is what I see happening RIGHT NOW…Short Term Interest Rates (specifically 90 day money), made their lows several months ago and are ALREADY moving higher…but when you get down to it, they really have moved very little compared to what I think they will do within the next 12-18 months.
I keep hearing, “I don’t know what Eurodollars are”, and I keep answering, “They reflect short term interest rates. If rates are going up, they will go down.”, which, really, is all I think you need to know here…IF RATES ARE GOING UP, THIS TRADE HAS THE POTENTIAL TO MAKE A LOT OF MONEY. IF THEY DON’T GO UP, YOU WILL MOST LIKELY LOSE EVERY DOLLAR YOU INVEST IN THIS IDEA.
If you want to take a real shot…here are some real numbers…
GET 25…or 50…or 100…My own idea is, once we cross through 98.87, every option will start moving closer to becoming the equivalent of a futures contract…wherein, for example, if you do own 25 every 1 tick move would be $625…
Doesn’t mean I will be right but I very seriously consider this to be the best trade I have ever seen…
Call if you want to talk about it.
All option prices in this newsletter include all fees and commissions.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars