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By David, on December 21st, 2010
2011 will be an interesting year. The currency markets will likely continue to experience volatility, especially in the Euro-zone. The individual bond markets on the periphery of Europe will provide a good place to capture the volatility associated with sovereign risk. There is little doubt that the slow pace of the European sovereign debt saga, will . . . → Read More: The 2011 Euro Decline
By David, on December 21st, 2010
Moly Corp broke out today.
The position of owning January 40 Calls against a short position of 31 puts http://www.optionstrategiesguide.com/2010/12/rare-earths-an-options-trade-for-molycorp.html, is far in the money. The profit on the trade for every contract is nearly 400% in just a week (2000% annualized). This is a very health return and at least half of the position needs to be . . . → Read More: Update on Moly Corp. (Rare Earths)
By David, on December 17th, 2010
The heating oil market has not led the petroleum complex forward for quite a while. Post the financial crisis, distillate demand, which includes heating oil, declined as customers where more willing to put on a sweater than turn up the thermostat.
Heating Oil Futures on the Nymex have increased more than 20% in 2010, and given the . . . → Read More: Heating Oil Volatility is Poised to Move Higher
By David, on December 15th, 2010
Rare Earths, China holds 60% of the worlds reserves of rare earths. These are the same rare earths that are used to make items such as smart phones, tablets and LCD screens. The demand from the US has been excellent, and countries such as China and India are beginning to catch up.
The demand for other mineral . . . → Read More: Rare Earth’s – An Options Trade for Molycorp.
By David, on December 13th, 2010
The equity markets are breaking out and there is still time to catch the upward momentum of a break out. Options strategies are excellent investment vehicles to lever your view into making robust returns. The Russell 2000 index is leading the charge higher, and the big cap equity indexes are likely to follow after the law . . . → Read More: QQQQ – Breakout – Head and Shoulder Combo
By admin, on December 13th, 2010
Volatility in the Euro currency has evaporated. The issues that market participants were focusing on during the past few weeks, have faded into the back pages, but will likely return only to rattle the markets again.
European yield spreads, led by the Spanish 10-year government bonds, have contracted for more than a week, reflecting investor confidence in . . . → Read More: Euro Currency Volatility Moves to Attractive Levels
By David, on December 10th, 2010
The Current Dynamic
The bond market is telling investors that the tax agreement, agreed to by the Obama Administration and the Republican Congress, is going to increase growth, and generate higher consumer participation in the economic rebound.
A consumer jolt will press GDP higher, and spur on higher interest rates and higher asset prices. The equity market is . . . → Read More: Russell 2000 (IWM) Option Trading Strategy 12/09/10
By David, on December 4th, 2010
Get on the Buss, Oil Prices are On the Rise
Oil prices have moved up and broken out of the recent 84.50-80.00 range to test the 87.50 level. Prices are currently being driven by improving fundamentals.
Most analysts target the Department of Energy’s data to create a profile for the current state of inventory within the US. Since the US is the largest consumer globally of oil prices, the current state of supply and demand fall in the laps of the US. Continue reading Trading Strategy for Crude Oil – ETF USO
By David, on December 4th, 2010
A number of forces are at work creating a volatile energy market, which has moved higher for the majority of 2010. On one side you have the FOMC introducing a second asset purchase program that is directed at increase inflation and asset prices. One the other side you have the Chinese government who is raising interest . . . → Read More: Trading Strategy for Occidental Petroleum 11/18/10
By David, on December 4th, 2010
XLF – A Call Spread which Offers an Excellent Risk Reward
While the major indexes such as the Dow the S&P and the NASDAQ are showing performance close to double digits, the financials have turned into the dogs of the market. The XLF, which is an ETF that incorporates the largest banks in the US, has lagged . . . → Read More: XLF – A Call Spread which Offers an Excellent Risk Reward 11/09/10
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