20 March Futures Commentary

Disclaimer- The following is presented for entertainment purposes only. Do not attempt to trade using this data! I recommend that you not trade futures at all. Among other things, you can lose more than your initial investment if you do so.

No new entry signals for our sample system today. We continue to have a sell condition in Fed Funds Futures; I think it is safe to say that Fed Fund Futures are in a bear market or close to it at this point. Our sample system only takes long positions, as I’ve determined that there is a greater expectation of profit on the upside than the downside, so I don’t recommend that you short Fed Funds. Interestingly the Federal Reserve has breathed new life in the Fed Funds markets, as volume as risen from a paltry 2000 or so contracts a day on average in the Summer of 2013 to a robust 90,000+ before the latest FOMC meeting results were released.

If we hadn’t been stopped out of Unleaded Gas it would be time to roll from April to May, but we don’t currently have a position in our hypothetical portfolio.