carleygarner
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July 26th, 2010
Marc Pearlman recently interviewed DeCarley's own, Carley Garner. Visit our wesite to listen.
Slow start to the trading week
Aside from new home sales, there was little economic data to move the markets and judging by the volume many traders opted to sleep in. However, earnings season is winding down and thus far the numbers have been solid. Most firms have beat expectations on both the top and bottom line and this paves the way for stock market stability.
Nonetheless, we are approaching what has been the second worst month for the S&P since 1987. Although late July is statistically positive, the market might be in store for one more large dip before a larger "bottom" can be made.
Additionally, keep in mind that according to last week's Commitment of Traders report provided by the CFTC (Commodity Futures Trading Commission) small speculators have gone from short to long in the S&P. I hate to jinx the recent trend-channel break-out but small specs turning bullish might be a sign of a bull trap.
The rally doesn't seem to have run its course just yet. We are looking for a possible move into the 1120's in the September S&P futures before sellers come back but our first resistance will be near 1116. Similar levels in the NASDAQ will be 1902 and again near 1917 and at 666 through 670 in the Russell. As the market approaches such prices, it might be a good idea to implement a bearish strategy (selling calls, buying puts, selling futures, or a combination of the three).
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track 'n Trade, Gecko software.
**Seasonality is already factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
Marc Pearlman recently interviewed DeCarley's own, Carley Garner. Visit our wesite to listen.
Slow start to the trading week
Aside from new home sales, there was little economic data to move the markets and judging by the volume many traders opted to sleep in. However, earnings season is winding down and thus far the numbers have been solid. Most firms have beat expectations on both the top and bottom line and this paves the way for stock market stability.
Nonetheless, we are approaching what has been the second worst month for the S&P since 1987. Although late July is statistically positive, the market might be in store for one more large dip before a larger "bottom" can be made.
Additionally, keep in mind that according to last week's Commitment of Traders report provided by the CFTC (Commodity Futures Trading Commission) small speculators have gone from short to long in the S&P. I hate to jinx the recent trend-channel break-out but small specs turning bullish might be a sign of a bull trap.
The rally doesn't seem to have run its course just yet. We are looking for a possible move into the 1120's in the September S&P futures before sellers come back but our first resistance will be near 1116. Similar levels in the NASDAQ will be 1902 and again near 1917 and at 666 through 670 in the Russell. As the market approaches such prices, it might be a good idea to implement a bearish strategy (selling calls, buying puts, selling futures, or a combination of the three).
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track 'n Trade, Gecko software.
**Seasonality is already factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations can be applied to either the full-sized S&P or the mini. Unless otherwise noted, profit and loss will be based on the mini version.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
