carleygarner
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February 10th, 2010
Last chance!! Sign up for our FREE webinar "Extreme Trading: Counter-Trend Option Selling"
http://www.pfgbest.com/webinar/eventSummary.asp?skey=338208184
Stocks hold yesterday's gains
Despite shaky early morning trade, the equity markets managed to hold on to most of yesterday's moderate gains to score a small victory for the bulls. Nonetheless, it is clear that there is still some underlying weakness and even if a rally can materialize in the next few days it might not last.
Investors are in "wait and see" mode as the European Union discusses the possibility of a bailout of Greece. According to sources, Germany would not be allowed to help Greece as doing so would be a violation of European Union law.
Adding to an already heavy market, investors weren't pleased with Bernanke's "exit plan". According to the Fed Chair, "These changes...should be viewed as further normalization of the Federal Reserve's lending facilities, in light of the improving conditions in the financial markets."
The Fed plan includes raising rates at the discount window (the rate that the Fed charges banks to borrow funds) in order to restrict money flow. Perhaps what the market doesn't like is the Fed's intention to pay banks more interest on Reserve funds as a means of enticing them to lend less. Have you tried getting a mortgage lately? Good credit history and money in the bank doesn't mean much to lenders anymore.
We are cautiously sticking with yesterday's call:
Given the sporadic trade, we can't rule out a retest of the lows but we can't help but lean a bit higher here. We are still looking for 1085 in the March S&P, but depending on news 1100 is possible. If you are trading the Russell, similar levels are 604 and 615 and in the NASDAQ at 1773 and 1810.
* 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 be 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 -
January 21 - Our clients were advised to sell the March S&P 1000 puts today following the drop in an attempt to capture the market volatility in the put premium. Fills were coming in from $8 to $9.
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 -
January 27 - Buy 1 e-mini NASDAQ near 1781
• February 3 - Place an order to exit this trade at 1830 OB
• February 9 - Change the exit order to 1798
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
[email protected]
1-866-790-TRADE
Local : 702-947-0701
www.DeCarleyTrading.com
www.ATradersFirstBookonCommodities.com
*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.
Last chance!! Sign up for our FREE webinar "Extreme Trading: Counter-Trend Option Selling"
http://www.pfgbest.com/webinar/eventSummary.asp?skey=338208184
Stocks hold yesterday's gains
Despite shaky early morning trade, the equity markets managed to hold on to most of yesterday's moderate gains to score a small victory for the bulls. Nonetheless, it is clear that there is still some underlying weakness and even if a rally can materialize in the next few days it might not last.
Investors are in "wait and see" mode as the European Union discusses the possibility of a bailout of Greece. According to sources, Germany would not be allowed to help Greece as doing so would be a violation of European Union law.
Adding to an already heavy market, investors weren't pleased with Bernanke's "exit plan". According to the Fed Chair, "These changes...should be viewed as further normalization of the Federal Reserve's lending facilities, in light of the improving conditions in the financial markets."
The Fed plan includes raising rates at the discount window (the rate that the Fed charges banks to borrow funds) in order to restrict money flow. Perhaps what the market doesn't like is the Fed's intention to pay banks more interest on Reserve funds as a means of enticing them to lend less. Have you tried getting a mortgage lately? Good credit history and money in the bank doesn't mean much to lenders anymore.
We are cautiously sticking with yesterday's call:
Given the sporadic trade, we can't rule out a retest of the lows but we can't help but lean a bit higher here. We are still looking for 1085 in the March S&P, but depending on news 1100 is possible. If you are trading the Russell, similar levels are 604 and 615 and in the NASDAQ at 1773 and 1810.
* 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 be 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 -
January 21 - Our clients were advised to sell the March S&P 1000 puts today following the drop in an attempt to capture the market volatility in the put premium. Fills were coming in from $8 to $9.
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 -
January 27 - Buy 1 e-mini NASDAQ near 1781
• February 3 - Place an order to exit this trade at 1830 OB
• February 9 - Change the exit order to 1798
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
[email protected]
1-866-790-TRADE
Local : 702-947-0701
www.DeCarleyTrading.com
www.ATradersFirstBookonCommodities.com
*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.
