Thu, Jun 5 2008, 12:13 GMT
by Carley Garner
**I was recently interviewed by Stock Shotz!! Visit YouTube.com and search Carley Garner Stock Shotz to listen.
It seemed as if the market was inclined to end higher on the day…that is until the Fed Chair mentioned the word “inflation” in conjunction with the phrase “similar to the 70’s”. However, after a dramatic sell-off the market realized that it had overreacted to the statement and had completely discounted the overall theme of his speech which was that there are many more differences than similarities between the two.
Don’t forget that the employment report will be released on Friday morning, I recommend being on the sidelines for this one as it has been known to spark volatility. With that said, selling premium in the June options based on a dramatic move following the report may be an attractive strategy. Be sure to contact me during Friday’s session for ideas.
Of all of the major indices, it seems to be the Dow that is trading the weakest. Meanwhile, the Russell and the Nadaq are both outperforming. Keep in mind that it is often the small cap stocks that lead the market higher following an equity downturn. I am not saying that the absolute bottom is in but I do think that stocks will end 2008 well into positive territory.
The Dow is managing to hold the lows but we have yet to get filled on the short 118 put that I was recommending selling for 50 or better. I still like this trade, let’s try again tomorrow.
Sorry so brief!!
Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.
**There is unlimited risk in naked option selling and futures trading
Position Trade –
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.
**There is unlimited risk in naked option selling and futures trading
Position Trade –
Flat
Published on Thu, Jun 5 2008, 12:20 GMT
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