After melting through 10,000 with ease, the Dow clawed back on the close to settle slightly above. The March Dow futures contract failed to reach the milestone but it is clear that there will be no free lunches for the bears.
There are no shortages of hedge fund blowups and many believe that it was the liquidation of leveraged commodity and stock positions that enabled such a dramatic fall from grace. At one point today, the S&P was approximately 60 points off of yesterday's highs. We haven't gotten to the capitulation seen in 2008 fueled by fund and small speculator margin calls and the subsequent liquidation but this has certainly been a reminder that complacency has no place in these markets.
Market psychology has changed, most traders have adopted a "sell rally" policy but that doesn't mean that the market will go straight down. In fact, there were rumors of a large and well known bank buying a total of 600 S&P futures late on Friday. Assuming a value of 1050 in the March contract, that is about $262,500 per contract...I'll let you do the math.
In the January issue of Futures Magazine, we were quoted several times in reference to our opinion of "Hot Markets of 2010". In the article we predicted a large upside breakout in the U.S. dollar early in the year and later noted that such a move would put pressure on the metals and grains. In this newsletter, we have mentioned several times that a stronger dollar would be trouble for domestic stock indices. Unfortunately, we don't always follow our own advice...If you are following our short put option recommendation, we are growing slightly anxious but are not yet uncomfortable. Despite spikes in volatility and put premium, we feel as though a relatively large bounce is looming and this will be just what we need to exit the position favorably. Luckily, as an option seller your timing and price speculation doesn't have to be perfect!
Our weekly chart is pointing to 1020 in the S&P, but we think higher before lower. The last time around, the rally fell short of our targets...we will see how things pan out this time. We are looking for a rebound in the S&P to 1085 and possibly even a bit over 1100 if the news is supportive. If you are trading the Russell, similar levels are 604 and 615 and in the NASDAQ at 1773 and 1810.
On a lighter note... http://www.cnbc.com/id/15840232/?video=1405435640&play=1
*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
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
*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.
Helpful Ideas when Booking Cheap Beijing Flights and Accommodations
Saving money is to anyones advantage, especially for tourists who book Beijing cheap flights and accommodations for their trip. What you should keep in mind though is the fact that although cheaper flights mean a lot of savings, you will be spending time in searching for them. You can start searching for cheap flights and accommodations in Beijing by comparing different prices from various offline and online sources to give you an idea of what the current prices are. Getting price quotes from a travel agent will also help you in your search for great prices as travel agents may have different offers and promotions for you. Make sure you also know how much the airfare and the hotel costs separately, so that you are sure youre getting the best price there is. More importantly, you should also consider booking your flight during the off peak or the shoulder season for travel so that everything is cheaper and the crowds are fewer.
Great Activities for Kids aboard Beijing Cheap Flights
Having your kids to stay put in one place for hours while you wait for your plane to land is truly a challenge, and this is especially true for parents traveling on Beijing cheap flights with their kids. So that your kids do not end up being the Dennis the Menace of the airplane,Nike Dunk High, plan a couple of fun activities and things to do so that they will not end up getting bored and start misbehaving. Bringing along with you their gaming consoles are a great way to get them to stay in their seat and not disturb the other passengers around you. Better yet, bring along a fully charged portable DVD player and get your kids to watch their favorite movies while on the plane. Other fun things you can bring along are coloring books, crayons, and markers so that your kids can draw and color while on the plane. Planning a couple of fun activities for your kids aboard flights will keep them entertained and they will enjoy the flight even more.
How to Cancel/Reschedule your Beijing Cheap Flight
After youve made all the arrangements for your Beijing cheap flight and hotel arrangements, what do you do when you suddenly need to cancel or change your travel plans?Knowing what you are eligible for and reviewing the airline policies will make the process of canceling or rescheduling your flight a whole lot easier. In this way, you can either get a refund, or get the next available flight which fits your current schedule and situation. It is very,www.newbalancepascher.net, very important that you notify the airline as soon as you can about any changes you see happening in your travel plans so that they can make way for your reschedule or cancellation request. There are some instances or scenarios wherein an airline can charge a fee for canceling or rescheduling your flight and it is important you know when you can and cant be charged such fees. As the saying goes,nike air force 1, expect the unexpected, and this is also true when it comes to Beijing cheap flights and any other form of travel.
False Impressions on Beijing Cheap Flights
Some people make the mistake of thinking that Beijing cheap flights and other cheaper flights have a catch to it which is why its cheap, like poor service or lousy food. It is however a fact that airlines truly give out promotions and discounts for different reasons and at different times of the year it just takes effort to look for and take advantage of such deals. Travel websites have tie-ups to different airlines and can offer promotions on their own because they get a profit from every sale they make, hence the competitive prices. It is also the same for travel agents, not to mention the fact that they are experts in bargaining prices for airlines and other details about your trip. Rates are lower during off-peak season so that travelers will still be encouraged to travel, and even accommodations are cheaper during this season. In case you find yourself with the need to travel, book cheap flights and enjoy the same standard of service but for a lesser price.