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Get timely market analysis, perspectives and trading ideas from TraderPlanet contributors to stay informed of global economic developments, financial market insights and other factors that may influence investment decisions and strategies.

High-Speed Panic Does Not Negate Earnings

Canada, New York, and Mali all are making the market news cycle. Ebola and terrorism, or, rather, what many are thinking is terrorism, but what just me a local nutcase.   The market did react when the news of the Canadian parliament shooting came across the wire on Wednesday and it reacted this morning to the news that both New York and Mali had their firs Ebola victims. To some degree, all...

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Options 101: How To Construct A Directional Play

Options 101: How To Construct A Directional Play

When I identify an opportunity for a directional play, how do I decide: a) what type of trade I want to do and b) what strikes do I want to use?  Typically, with a directional play, I look for some sort of vertical.  This lowers my cost basis (granted it caps my potential profit).  But most importantly, I attempt to "target" a specific strike.  I do this by "triangulating" a few...

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Skew: Did Option Players Get The Sell-Off Right This Time?

Skew: Did Option Players Get The Sell-Off Right This Time?

If you want to figure out the next move the markets will make, I have a secret to tell you about. Option traders have a trick that most investors and traders have never heard of, let alone understand. It is a little thing called skew, which is a real time view of where money is being bet. (In technical terms, skew is "the risk associated with an increase in the probability of outlier...

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December Euro Currency Futures: Trading Idea October 24, 2014

December Euro Currency Futures a Selling Opportunity on More Price Weakness See on the daily bar chart for the December Euro currency that prices have backed off this week and the bears have gained fresh downside momentum. A move in prices below chart support at 1.2600 would become a selling opportunity. The downside price objective would be 1.2200 or below. Technical resistance, for which...

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Emerging Markets Are Losing Strength

Emerging Markets Are Losing Strength iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) broke down below its lows of the previous 7 months on 10/23/14. Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) broke down below its lows of the previous 7 months on 10/23/14. The S&P 500 Composite Index (SPX: 1,950.82, up 1.23%) opened higher and continued to work...

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A Bit More Risk-Aversion in Market Place Friday

* Latest Market Developments * OVERNIGHT DEVELOPMENTS The market place may or may not be reacting to news of a possible new Ebola case in New York City. U.S. stock markets are a bit weaker in early electronic trading Friday morning, while U.S. Treasuries and gold are firmer—suggesting a bit more risk aversion in the market place heading into the weekend. However, it can be argued the U.S....

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Gold Bulls are Fading Again

METALS: December gold futures closed down $17.10 an ounce at $1,228.40 today. Prices closed nearer the session low on more profit taking and on a big rally in the U.S. stock market. A fledgling three-week-old uptrend on the daily bar chart was negated today as the bears gained some fresh downside momentum. The gold bulls’ next upside near-term price breakout objective is to produce a close...

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More of the Same But Different?

Let’s start today by going back to yesterday, another in a series of volatile days. I think the market took my advice a bit too seriously, as all the major indices dropped with gusto. I am not sure why, but it seems the buyers simply ran out of gas. Stocks took on some water today, but it can't be a complete surprise. I think it was yesterday we pointed out the S&P 500 had rallied more...

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Define Risk On Crude Oil Play With Options

Define Risk On Crude Oil Play With Options

The markets have calmed down a bit from last week, but there is still a cloud of uncertainty hanging overhead. The equity markets have done quite a job of getting back most of the recent sell off. Last week the S&P 500 had a nearly 120 point range from Monday to Thursday, with a 50 point range on Thursday alone. The market closed up 30 points from the low on Thursday, which may have...

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January Soybean Futures: Trading Idea October 23, 2014

January Soybean Futures a Buying Opportunity on More Price Strength See on the daily bar chart for January soybeans that prices are in a fledgling uptrend and have just hit a four-week high. The bulls have gained upside near-term technical momentum recently. A move above chart resistance at Wednesday’s high of $9.90 would give the bulls better upside momentum and it would also become a...

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