As Gold Prices Rallied To A 2010 High, Traders Sold The U.S. Dollar Off.
MY ANALYSIS
Fundamentally, GOLD made new 2010 highs and I expect GOLD to fly from here for 3 basic reasons:
1. Recovery Growth
2. Inflationary Fears
3. EU/Chinese Buying
Technically, the GOLD market is in a SUPER-TREND higher on the daily indicated by the market holding above the 2 MA’s that are both pointing higher. The STOCHASTICS indicate that the market is in an oversold condition and should correct, but in TRENDING markets this indicator can stay at extreme levels for long periods of time.
BUYING OPTIONS ON FUTURES=STAYING POWER IN TRADE
OPTIONS PLAY
BUY AUGUST BULL CALL SPREADS
We also buy in a 3 to1 ratio an outright PUT in case the market makes a MAJOR move against us.
FOR A FREE CME REPORT ON OPTION BASICS CLICK HERE: http://www.zaner.com/3.0/mmck5.asp
WE ARE ALSO FOCUSING ON COMMODITY OPTIONS IN U.S. 30 YEAR TREASURY BONDS, OIL, SILVER, GRAINS, SOFTS, and INDICES.
FREE QUOTE- “Successful traders don’t buy low and sell high, they buy high and sell higher.”
Call or email me with your phone number for a detailed explanation of the strategies 312-277-0115 or mmckinney@zaner.com.
Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions
FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION
