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America’s Most Wanted Man!

Site Administrator | July 26, 2011

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America's Most Wanted Man:

It is not the terrorist leader, arms dealer or drug kingpin that many of you might be thinking of with a headline like the one above.  Based on the rhetoric from Washington, it sounds like it is the oil trading, hedge fund manager that has a private jet.  If anyone of you see this man please report them immediately to the TradingPub so we can turn them in to the government and reap our reward!  All jokes aside, it seems as though the markets and the nation are at a turning point: that point where we either turn it around or well... let's hope we don't go there.

As far as the current market is concerned, we are in what is known as the dog days of summer.  We have seen volumes dry up considerably on the e-mini SP futures as well as in SPX options and basically anything that has a market to trade.  There are a few interesting moves that have been occurring while the US index markets (Dow, SP and Nasdaq) levitate around current prices as we all await the latest news report from Washington.  In our opinion, we will continue to see choppy price action until that news breaks.  We are using the following numbers on the e-mini SP Futures as important areas of support and resistance:  1355, 1345, 1339, 1333, 1320-22 and 1316.  The best trading over the next week will most likely come from price spikes due to a news announcement which means those glued to the screen all day might be better off enjoying some of the summer sunshine and waiting for better opportunities when volatility picks up again.

Just because the equity markets are slow does not mean that there is nothing to trade.  One of the great things about understanding the markets is that there is almost always something moving.  The market we are going to touch on this week is gold.  As you can see from the chart below, Gold has been on an incredible run for the month of July.  Other markets with a strong run this month include the Swiss Franc, Australian Dollar and Crude Oil.  The move in Gold is based on the fear in the market place surrounding the US debt situation.  It is not so much about IF the Government will get a deal done but more so on HOW that deal will take place.  The US Dollar has been beaten up, and as a result traders and investors have flocked to this shiny metal.  These investors apparently have an eye on not only Washington but Gold's seasonal tendencies as well.  From a seasonal basis, GLD (a gold ETF) is flat in August, strong in September, flat in October and then strong again in November.  Keep in mind this is a tendency not a certainty, but it is good to know!

One thing that we have seen throughout time is that Gold tends to have these types of moves higher and then very sharp pullbacks. What ends up happening with this is gold becomes all the rage  Because of this, it is extremely important to use stop loss orders and also consider option hedging strategies such as collar trades or protective puts.  We have several speakers at the Pub who share about these strategies so if you would like to learn more, be sure to register as a patron in the top right corner of this page (now that we got our plug in, let's get back to gold).

Here are some important numbers to watch for in Gold (Based on August Gold Futures):

1640 area (Fibonacci traders delight)

1624 (High of July 25)

1600 (A nice round number that can be used for a pivot)

1580 (Swing low during consolidation from July 19-22 and also a Fibonacci and volume profile number).

We hope you all have a great week and remember if you see that oil trading hedge fund manager with a private jet, be sure to let us know!

Be sure to follow us on twitter to stay up to date: @TradingPub

Cheers,

The TradingPub

"Trade, Talk, Learn - Cheers to Success"

 

Disclaimer:  Article intended for traders and not english majors.  Disregard any misplaced commas.

 

 

 

 America's Most Wanted Man:

It is not the terrorist leader, arms dealer or drug kingpin that many of you might be thinking of with a headline like the one above.  Based on the rhetoric from Washington, it sounds like it is the oil trading, hedge fund manager that has a private jet.  If anyone of you see this man please report them immediately to the TradingPub so we can turn them in to the government and reap our reward!  All jokes aside, it seems as though the markets and the nation are at a turning point: that point where we either turn it around or well... let's hope we don't go there.

As far as the current market is concerned, we are in what is known as the dog days of summer.  We have seen volumes dry up considerably on the e-mini SP futures as well as in SPX options and basically anything that has a market to trade.  There are a few interesting moves that have been occurring while the US index markets (Dow, SP and Nasdaq) levitate around current prices as we all await the latest news report from Washington.  In our opinion, we will continue to see choppy price action until that news breaks.  We are using the following numbers on the e-mini SP Futures as important areas of support and resistance:  1355, 1345, 1339, 1333, 1320-22 and 1316.  The best trading over the next week will most likely come from price spikes due to a news announcement which means those glued to the screen all day might be better off enjoying some of the summer sunshine and waiting for better opportunities when volatility picks up again.

Just because the equity markets are slow does not mean that there is nothing to trade.  One of the great things about understanding the markets is that there is almost always something moving.  The market we are going to touch on this week is gold.  As you can see from the chart below, Gold has been on an incredible run for the month of July.  Other markets with a strong run this month include the Swiss Franc, Australian Dollar and Crude Oil.  The move in Gold is based on the fear in the market place surrounding the US debt situation.  It is not so much about IF the Government will get a deal done but more so on HOW that deal will take place.  The US Dollar has been beaten up, and as a result traders and investors have flocked to this shiny metal.  These investors apparently have an eye on not only Washington but Gold's seasonal tendencies as well.  From a seasonal basis, GLD (a gold ETF) is flat in August, strong in September, flat in October and then strong again in November.  Keep in mind this is a tendency not a certainty, but it is good to know!

One thing that we have seen throughout time is that Gold tends to have these types of moves higher and then very sharp pullbacks. What ends up happening with this is gold becomes all the rage  Because of this, it is extremely important to use stop loss orders and also consider option hedging strategies such as collar trades or protective puts.  We have several speakers at the Pub who share about these strategies so if you would like to learn more, be sure to register as a patron in the top right corner of this page (now that we got our plug in, let's get back to gold).

Here are some important numbers to watch for in Gold (Based on August Gold Futures):

1640 area (Fibonacci traders delight)

1624 (High of July 25)

1600 (A nice round number that can be used for a pivot)

1580 (Swing low during consolidation from July 19-22 and also a Fibonacci and volume profile number).

We hope you all have a great week and remember if you see that oil trading hedge fund manager with a private jet, be sure to let us know!

Be sure to follow us on twitter to stay up to date: @TradingPub

Cheers,

The TradingPub

"Trade, Talk, Learn - Cheers to Success"

 

Disclaimer:  Article intended for traders and not english majors.  Disregard any misplaced commas.