Saturday, October 30, 2010
Saturday, October 23, 2010
ETF Golden Crosses (50/200dma) Galore
Saturday Rock Blog: Thunder Busters
Happy Halloween everyone!
Friday, October 22, 2010
US Treasuries Cross of Death
30 Year Treasury Bonds Daily 04/13/10-10/21/10:
The 30 year is currently trading under its 50day moving average. The last time the market was under this average was in September and bonds were able to hold to move higher. This move comes as bonds failed to retake the August highs of 137 and have now fallen under this 50 day moving average that has the market bear flagging and testing the trendline support from May’s breakout. Seeing the bear flag confirm with another leg down will have the 20 day moving average cross down and through the 50 day creating a “death cross”. The last time the 20day crossed through the 50 day was in April as it created a golden cross and the market began its move higher. This current cross can attempt to change direction in the market’s current trend. A test of the 100 day moving average down to 129 along with the September lows would be targeted. The fed is expected to buy treasuries today and the question is will their purchases be enough to hold yields at these levels? The St. Louis Fed President James Bullard has proposed the central bank buy $100 billion in long-term Treasuries next month and consider more purchases later. Are they bluffing? Buy stops to be triggered on a move through 133.
Bloomberg: Treasury Traders Increase Bets on Inflation for a Third Consecutive Week- http://bit.ly/cJVyrL
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS.
Thank you and best of luck trading!
Stewart Solaka
Tuesday, October 19, 2010
Saturday, October 16, 2010
Thursday, October 14, 2010
Apple's 240/230 Put Seller
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS.
Thank you and best of luck trading!
Stewart Solaka
Saturday, October 09, 2010
Tuesday, October 05, 2010
Exchange Stocks ICE & CME, Bullish?
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS.
Thank you and best of luck trading!
Stewart Solaka
Saturday, October 02, 2010
Friday, October 01, 2010
10/01/10 Copper Breakout & Australian Dollar Correlation
Continuous High Grade Copper Futures 12/21/07-09/30/10:
Copper is breaking out the upside riding its Bollinger Bands and testing the highs from April 2010 at 3.68. China's September PMI was released today showing a rise to 53.8% from the 51.7% in August. The rise in PMI reaffirms China's slowdown is not that sluggish and their manufacturing is picking up. This adds a boast to copper as China is one of coppers biggest consumers. Technically, copper has been rising since it tested and held 2.80 back in May: http://twitpic.com/1pl6z8 and http://twitpic.com/1z5l4w. This move has been resilient as it has been able to push through resistance levels of 3.40-3.60 and head to the April highs. Taking out this high leaves the market in a bullish momentum with next major area of resistance between 3.80-4.00, and ultimately the highs of 4.27 from May 2008. In both the Aussie and copper, pullbacks to trend line should find support and be bought.
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS. AN INVESTOR COULD LOSE MORE THAN THE INITIAL INVESTMENT. OPINIONS EXPRESSED. INFORMATION COMPILED FROM SOURCES BELIEVED TO BE RELIABLE, ACCURACY CANNOT BE GUARANTEED.
Thank you and best of luck trading!
Stewart Solaka
10/01/10 US Dollar Index Targets New Lows
The US Dollar Index broke down and lost 5.8% during the month of September as it failed to hold above 80.00. In the previous market update, I noted the dollar index being at a "critical level" as it was testing a neckline from it's head and shoulders formation, "...breaking this neckline here will suggest the market may believe QE2 will happen and if confirmed this could lead the dollar index further depreciating and targeting down to 71.00." Looking at the above chart, the dollar index broke below this level, and has made lows down to 78.620. Is the market anticipating QE2? Possibly, but nothing is confirmed and all we see is the price action in the market. Technically, a head and shoulders is in the charts, 89.10 head, 80.00 neckline, giving a range of 9.10. The market has broken below its neckline giving a potential target of 70.90 (80.00-9.10=70.90). This would lead the dollar to test it's lows from 2008 of 71.05. Short term, the US dollar may be oversold, any retraces back to 80.00 should resist and be seen as an opportunity to sell. If the market can find itself getting back above 80.00, the right shoulder area of 80-83 would need to be worked through for any attempt to move higher and retest the highs of 89.00. The Euro has moved higher against the dollar in hopes that Europe may be removing their stimulus policies before the US and Britain. The Euro futures gained 7.7% in September.
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS. AN INVESTOR COULD LOSE MORE THAN THE INITIAL INVESTMENT. OPINIONS EXPRESSED. INFORMATION COMPILED FROM SOURCES BELIEVED TO BE RELIABLE, ACCURACY CANNOT BE GUARANTEED.
Thank you and best of luck trading!
Stewart Solaka