SampleStocktraksp05

SampleStocktraksp05 - 1. 03/03/05 Sell 50 March 05 10 year...

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1. 03/03/05 Sell 50 March 05 10 year T-Note Futures Executed at 109:24 03/07/05 Buy 50 March o5 10 year T-Note Futures Executed at 110:05 Loss $20,262.50 Explanation: The expectations for tomorrow’s unemployment statistics are an increase of non- farm payrolls of 200-220K. The numbers that give an indication of the size of this number (first time unemployment claims, Monster job index) have been higher than expected. My estimate is the number will be above 300K. This is an indication that the economy is picking up steam and will add to the inflationary pressure causing long-term rates to rise therefore I shorted 50 T-note Futures contracts. 2. 03/07/05 Sold 50 contracts of March DJIA @ 10,900 03/10/05 Bought 50 contract of March DJIA futures at 10,875 Profit $12,500 Explanation: Although the economy is strengthening as shown by the current economic releases. A chart of the DJIA shows that we are nearing some fairly substantial resistance to further rises in price, with 11000 being what appears to be a formidable barrier to further rises in prices. This should cause a sell off in the DJIA and the DOW stocks that are in a significantly oversold position; therefore I sold short 50 contracts of the March 05 DJIA. 3. Spread NOB 03/21/05 Buy 20 June 05 T-notes (10 year) @ 109’000 Sell 10 June 05 T- bonds @ 110’21 Open Explanation: Currently the spread between 10-Treasury and the 30-year Treasury is 30 basis points. Historically this spread had been between 50 and 100 basis points. The recent economic numbers such as the employment
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This note was uploaded on 11/23/2009 for the course FIN 5180 taught by Professor Rader during the Fall '09 term at Temple.

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SampleStocktraksp05 - 1. 03/03/05 Sell 50 March 05 10 year...

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