Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders

[bw81]

using calls to repair a bad trade,
Long ftse £10/pt from 4425, market moves to 4370, u are down £550 , instead of selling and taking loss, u can sell the June 4525 call and receive, £530 (30 days to expiry). So now you have wiped out a £550 loss, but u have sold the upside of your trade to the call holder, you maximum profit is now £1000 add the premium of £530, £1530

Be very careful 'selling' options my friend. They can really wipe you out.

i would ask yourself what happens if the FTSE level goes down another 100, 200 or even 300 points before expiry of your options? your loss on the FTSE future is gaining by £1000 per 100 points. Your only way of winning in this scenario is if the FTSE stays above 4370. thats a big gamble.

 

[SuddenDeath]

thanks bw81, I will bear that in mind

 

[fraggermcg]

But he's making that loss anyway if he doesn't sell the option. He can't be "wiped out" in the traditional sense of selling an option as he's hedged through the existing long if the option comes into the money again.

Normally I'd agree entirely though, selling options is a v risky game. Just ask Warren Buffett!

 

[bw81]

But he's making that loss anyway if he doesn't sell the option. He can't be "wiped out" in the traditional sense of selling an option as he's hedged through the existing long if the option comes into the money again.

Normally I'd agree entirely though, selling options is a v risky game. Just ask Warren Buffett!

yes i totally agree, if the market continues to go up, then he would be ok, limited upside, but ok.

if he decides to stick with the long futures contract and it tanks below 4370 his losses will be huge.

 

[fraggermcg]

Back to topic, FTSE just closed below 4350 on the 10 min candle suggesting another move down. I'm worried about the S&P sitting on a key support at 890 though. Will await the opening of the US myself.

 

[wallstreet1928]

wallstreet....i thought you were not trading forex !!!!

Good afternoon chaps ........

yes I have started to because it is currently a vital cog in understanding this market my friend

I am currently buying Eur/USD and i am also going long on us oil .......

 

[wallstreet1928]

I have a buy order for FTSE 4315 ...stop loss 4285

I may enter it early !!

 

[wallstreet1928]

Back to topic, FTSE just closed below 4350 on the 10 min candle suggesting another move down. I'm worried about the S&P sitting on a key support at 890 though. Will await the opening of the US myself.

yes your concerns are shared my friend

lets wait and see

 

[Dentalfloss]

intermarket analysis...good
will we rally from here.?

 

[wallstreet1928]

S&P is looking very weak to me

failed retest of 930 ...............next level 884

I have opened up a short 901.2 ...stop loss 904.2

target 892 initially and then 884

US dollar has been severely battered and may well be due a pull back so i will need to keep an eye on that........

a pullback on US dollar or a stall in the US dollar will be enough for me to reach my 1st target of 892

1st target met ...........

I have taken my chips off the table rather than wait for 884 as reversals in this market are quiet powerful..........

 

[wallstreet1928]

I am also contemplating a long on GBP/USD..............It seems to have shruggen off the downgrade by S&P

 

[carlos b]

I have a buy order for FTSE 4315 ...stop loss 4285

I may enter it early !!

ws looks like mining in the days' losing sector list

Share price - UK share prices, breaking stock market news and share price charts and UK share information.

will this impact on ftse on its own?

 

[wallstreet1928]

keep an eye on the dollar index my friends if you want an edge to trading this market

inverse relationship between dollar and market

inthemoneystocks - last night video
YouTube - inthemoneystocks's Channel

 

[wallstreet1928]

ws looks like mining in the days' losing sector list

Share price - UK share prices, breaking stock market news and share price charts and UK share information.

will this impact on ftse on its own?

miners are heavily weighted on the FTSE index ......and one must keep an eye on them.

please see link to study sector weighting and the impact it can have on the FTSE
http://www.ftse.com/Indices/UK_Indices/Downloads/FTSE100_Index_Factsheet.pdf

highest are financials & oil/gas = 44% , if you study them 2 alone and know the market leaders(e.e Barclays, BP ...etc ) in those sectors you will know where the FTSE is going

hope this helps

 

[carlos b]

for those like me who'd like to learn more about the dollar index..

U.S. Dollar Index (USDX)

thanks ws

 

[wallstreet1928]

for those like me who'd like to learn more about the dollar index..

U.S. Dollar Index (USDX)

thanks ws

thank you Carlos

MarketWatch.com Quote

you can also use UUP on
FreeStockCharts.com - Web's Best Streaming Realtime Stock Charts - Free

here is the best one
US Dollar Index - Real-Time Currency Trading Charts from FXTRek for Forex Trading

 

[bennie83]

So the big three FTSE companies to watch would be BP, Barclays and (a miner? Xstrata?). What do you think WS?

 

[carlos b]

thank you Carlos

MarketWatch.com Quote

you can also use UUP on
FreeStockCharts.com - Web's Best Streaming Realtime Stock Charts - Free

here is the best one
US Dollar Index - Real-Time Currency Trading Charts from FXTRek for Forex Trading

thanks v much ws.


and for those who cant' find the instrumetn id or have no feed and need a looksie for free..
U.S. Dollar Index Chart - 1 Hour Live US Dollar Index Price Chart Intraday

 

[carlos b]

So the big three FTSE companies to watch would be BP, Barclays and (a miner? Xstrata?). What do you think WS?

wouldnt mini sectors as whole prove more beneficial bennie..safety in numbers and all that?

 

[bennie83]

wouldnt mini sectors as whole prove more beneficial bennie..safety in numbers and all that?

hmmm, I would imagine that due to the FTSE weighting the market is more likely to follow the bigger companies, but I'm not sure because I've not used that kind of analysis to trade - I just watch the FTSE index as a whole.