Markets

The Weekend Commodities Review

General Comments Gold and silver reversed, getting ahead of a dollar bull run that should set fresh near term highs this week. Oil and some grains have setup congestion patterns awaiting the next moves by the stock and currency markets. The dollar’s break above 78.61 should signal a massive

Looks like some topping action, as in “US dollar correction”?

EURUSD Daily Wave Chart: This chart is bit convoluted, but let us try to explain the key points from an Elliott perspective suggesting that “this corrective move in EURUSD” may be done (we never ever know without hindsight, but technically there is lots of evidence here to make the case). 1) Cle

The Weekend Commodities Review

Energies Crude oil is going to be heavily dependent on the U.S. dollar as it is dictating foreign demand. Supplies are one thing, but a dollar rally is likely to thwart near term supply concerns. The dollar bounced ahead of key trendline support and appears to be changing its very bearish trend to

Who cares? Who knows?

If you can believe it, the US dollar has gotten hammered in the last 12 hours — the euro and pound up over a percent at their day’s highs; the Australian dollar coming very close to US dollar parity. The day’s early moves have hints of capitulation as QE2 and currency war speculation satur

Bigger Gains, Less Time. Tap Into the Potential of Weekly Options

Traders spoke, and the exchanges listened. And, if the growing popularity of the new weekly-expiration options is any indication, these shorter-term puts and calls will soon join their monthly-expiration counterparts as mainstream trading instruments. Just as the name implies, the newest innovation

The Weekend Commodities Review

General Comments Last week did not offer the timing I anticipated for an industry wide commodity and stock selloff as economic and energy inventory data helped to spike the stock and energy markets. The dynamic that I see, however, has not changed and therefore I continue to anticipate a massive pr

Selling Options to Profit from a Bad Economy

In case you didn’t hear the good news, the recession is over. The official announcement came this week. Yes, indeed, it ended last year. So we can all quit our belly aching and get back to what we were doing. Whew – Glad that’s over. Curious that this profound announcement comes 45 days pri

A Disconnect Between News and Price Action

Last week we noticed some spreads blew out even further, particularly thanks to the concern of Ireland and its banks. Spread: Irish 10-year bond vs. German 10-year bund You might also remember the Wall Street Journal article that rehashed the entire region’s banking problems and the rather large

The Weekend Commodities Review

Energies A significant decline in oil prices is anticipated over the next 5 days, sparked by a selloff in the euro. Look to capitalize on this with a short term put play. Natural gas must break above the highs from September 16th in order to establish a bull trend. Financials The stock market has

British Pound: A Set-Up …

The pound yesterday was hit by a couple news items – credit to businesses shrank, money supply declined and growth in mortgage applications slowed. And despite some mostly reassuring news from Moody’s that the UK is not in jeopardy of losing its AAA credit rating, the pound was hit pretty hard.