How Macro Trading Veterans Are Thinking About 2025 | David Cervantes & DCP

Bullish:

• $DS5SOFR - Donnie is focusing on finding opportunities to go long the 5-year SOFR futures contract in the coming year, indicating a bullish stance on this specific interest rate product.

  • “How and when do you make money being long, you know, the DS5 SOFR is is my focus for the New Year.”

    Donnie·1:07:08
• $SOFR - Donnie expresses a strong preference for trading SOFR futures when there is an active Federal Reserve, suggesting potential opportunities in this market.

  • “If we have a choppy, active federal reserve, there's no better in the market. No better market in the world than Trading Star.”

    Donnie·57:18
• $BONDS - David believes that the Fed's hawkish stance will help control inflation, potentially leading to increased demand for bonds.

  • “I think now, ironically, I I do think that the Fed now the Fed came out swinging hawkishly, that should dampen the last embers of inflation. That last mile that everyone's been talking about, you know, we made huge progress, the past couple in past 18 months, with inflation. We we have the last mile issue. I think those that last mile, now with this new found hawkishness, should be easier to put out and that would that will, I think, put a bid on bonds.”

    David·36:25
• $ES - Donnie implies a bullish stance on S&P 500 futures (ES) based on the expectation of continued fiscal stimulus and lack of fiscal restraint.

  • “For me to get bearish the spooze, I would need to see fiscal restraint, and I don't think we're gonna see that for a while.”

    Donnie·1:05:15