Concern over a trade dispute between the U.S. and China triggered overnight selling in the futures markets but the pressure subdued and eventually the markets turned positive. All in all, it was a relatively positive day for the markets and contrary to the expectations of many, the bull is still going strong.
A speech delivered by President Obama seemed to have a positive impact on trade, or perhaps it was simply that it didn't have a negative impact that is important. Mr. Obama warned the financial industry that the days of recklessness is over. He also promised that regulatory reform, in some format, will pass this year.
The U.S government adopted trade penalties on tires coming from China and the Chinese subsequently filed a complaint with the World Trade Commission. Some worry that a tariff war or, worse, a reduction in Chinese Treasury purchases could slow down the already sluggish recovery. After all, China is one of the largest backers of the U.S. financially, if they stop buying our debt or begin selling what they own, rates will skyrocket and so will our national debt. This would make it even more difficult to finance the government "stimulus" projects.
Is option expiration holding this market up, or is it holding it down...? Despite today's recovery, we are still leaning lower. We like the short side of the S&P from about 1055 and the downside of the Russell from just over 600. The NASDAQ seems a bit toppy near 1688 but I can't rule out a last ditch move to 1720ish.
* 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 are based the full sized S&P unless otherwise noted.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 10 - Our clients were recommended to sell calls into the rally, most sold the 1095 or 1090 strikes in the October S&P options for $6.50 to $6.00 respectively.
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 -
September 10 - Sell 1 mini NASDAQ at 1683ish
A speech delivered by President Obama seemed to have a positive impact on trade, or perhaps it was simply that it didn't have a negative impact that is important. Mr. Obama warned the financial industry that the days of recklessness is over. He also promised that regulatory reform, in some format, will pass this year.
The U.S government adopted trade penalties on tires coming from China and the Chinese subsequently filed a complaint with the World Trade Commission. Some worry that a tariff war or, worse, a reduction in Chinese Treasury purchases could slow down the already sluggish recovery. After all, China is one of the largest backers of the U.S. financially, if they stop buying our debt or begin selling what they own, rates will skyrocket and so will our national debt. This would make it even more difficult to finance the government "stimulus" projects.
Is option expiration holding this market up, or is it holding it down...? Despite today's recovery, we are still leaning lower. We like the short side of the S&P from about 1055 and the downside of the Russell from just over 600. The NASDAQ seems a bit toppy near 1688 but I can't rule out a last ditch move to 1720ish.
* 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 are based the full sized S&P unless otherwise noted.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
September 10 - Our clients were recommended to sell calls into the rally, most sold the 1095 or 1090 strikes in the October S&P options for $6.50 to $6.00 respectively.
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 -
September 10 - Sell 1 mini NASDAQ at 1683ish
