Archive for November, 2009
Economic Numbers Have Room To Disappoint Ahead of Friday!
Last Friday, traders had planned on a quiet half day of trading. Dubai World announced that they would seek debt restructuring and they needed an extension on a $5.7 billion loan. The markets reacted with a steep decline and the S&P 500 closed 20 points lower. First, let’s put the Dubai issue into perspective. It’s no secret that they overdeveloped and that commercial and residential buildings are half-empty. It was just a matter of time until loan defaults surfaced. In total, analysts have projected that this problem could reach $50-$70 billion under worst-case scenarios. That pales in comparison to the banking …
Trading System Equals Success
What factors should be taken into consideration when choosing an options trading system?
End of Month and Black Friday Could Push Us Through SPY 111.50 - Tread Carefully!
Monday, the market tried to break out to a new high after overseas markets rallied. An early surge faded quickly and the market drifted lower, giving back some of its gains. That was the third time SPY 111.50 has been tested and resistance is building. Yesterday, the market fended off a decline after Q3 GDP was revised downward from 3.5% to 2.8%. The FDIC also released its apposite information and they fell to a negative $8.2 billion in the third quarter. The number of banks on its “problem list” rose 33% in the third quarter to its highest level in over …
EDWARD J. JOYCE, CBOE PRESIDENT AND COO, TO RECEIVE ANTI-DEFAMATION LEAGUE LIFETIME ACHIEVEMENT AWARD
EDWARD J. JOYCE, CBOE PRESIDENT AND COO, TO RECEIVE ANTI-DEFAMATION LEAGUE LIFETIME ACHIEVEMENT AWARD
Resistance Is Building. A Trading Range For The Remainder Of The Year Is Likely!
The recent breakout to new highs for 2009 has been minimal. The market has challenged SPY 111.50 three times without success. Profit-taking sets in quickly each time and buyers aren’t aggressive enough to overpower profit takers. A formidable resistance level is forming. In today’s chart you can see that the magnitude of each breakout is decreasing. After each new high, the market probes for resistance. A key reversal marks resistance and after a retest a few days later, the market declines. This is a very tradable pattern and I believe we are due for a few days of weakness. This morning, …