| | | JPM Part II | | | | 
| | ---Larry Levin | | |
| | | | | | 
In conjunction with TheStreet.com and Bar Chart, Trading Advantage Chief Market Strategist Alan Knuckman provides a daily morning update on the global action in stock futures, gold, oil and interest rates. |
| | | | | | | | | Congratulations to Vaughn Wolff and Ajaz Lateef Congratulations to our students of the day Vaughn Wolff and Ajaz Lateef who have been successfully navigating the TAP program. In the open forum webinars, the TAP trainees are learning which risk management strategies to implement in each market and how to recognize when to modify risk mitigation while in live trades. Click the following link to see the TAP training in action - Click here to watch video | | NOTICE: Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. The average reader should not necessarily expect the same or similar results. Past performance is not necessarily indicative of future results. No person was compensated for providing a testimonial. |
| | | | | | OPTIONS: Volatility Commentary | ---Michael Shorr | | | Sometimes the best trade is the one you don't make. Two recent examples come to mind. First, there is Tesla Motors (TSLA). Earnings were the 7th of August after the close and implied vols were extremely extended. Although the risk/reward going into the trade were attractive, it has been impossible to try and stand in the way and pick tops in this this company. To say that TSLA and its founder, Elon Musk, have been a market and media darlings is a huge understatement. Any positive news coming out of the report would be warmly received. Conversely, any sort of downside play has been a losing proposition since the inception of the company. As I have said before, "you cannot fade the Musk". Best to sit this one out. Next, JCPenny (JCP). What a disaster this company has become. Now you have an activist investor, William Ackman, who is upside down on yet another investment barking at the board of directors saying "board has ceased to function effectively in recent weeks." The board kindly disagreed. The implied vols are at all time highs, but at times, there's a very good reason for it. What happens if JCP does file for bankruptcy? What if Ackman pulls the plug on his stake in the company? What if creditors like Goldman Sachs force a liquidation of inventories? There are just too many "what ifs" to rationally enter into a trade with any implied volatility exposure. We will just have to watch the fireworks and move on to the next trade. |
| | | | | FOREX: Currency Spotlight | ---Ed Moya | | | |
Abenomics may not be working as well as many anticipated. Last night, Japan's Cabinet Office released the preliminary reading of second quarter GDP. Dollar yen and the Nikkei both sold off after economic growth came in at 0.6% for the second quarter, significantly lower that then expected 0.9%.
The trend for economic growth is still headed in the right direction, but the concerns are strong that we do not know how Japan will handle the tax increase in the fall. Several investors are also disappointed the central bank did not increase their stimulus plan last week.
Japan's Minister of the Economy, Akira Amari said that the government will wait and see how GDP progresses before any final decisions are done regarding tax increases. Amari also highlighted the strength which was seen in consumer spending and exports.
Dollar yen bulls may need to wait until after the summer before all three arrows are clicking for Japan. |
| | | | | STOCKS: Watch List | ---Charles Moon | | | | With the market jumping higher initially at the open, any momentum was suppressed at the 1700.00 SPX level. The market then slid to the lows of the day, where it tried to recover but ended up taking one last slide into the close of the session. The rejection the last 2 days at the 1700.00 level has been eyebrow raising, as this level was easily broken the first time through. Now it is proving to be a brick ceiling for buyers, as it seems that the markets retraces back with velocity. Watch this price level moving forward here, because if this level remains difficult to break, the markets can be in for a small slide here.
Seeing how these markets are a bit on edge over all the media and Fed talk on tapering, we can see fast pullbacks take place in both the markets and in stocks. I think there are better opportunities being short in this market if the timing is right. That does not mean you shouldn't look to buy, but more about not being overly biased to the upside. If you can look to play both sides of the market here the next few weeks, the profit potential could be greater if the markets bounce around. I think the markets will go back and forth with a bit more weakness to the downside, and I don't expect a full out trend in either direction. Look to play short term in the markets, and don't be afraid to trail your stop aggressive here. With strong pullbacks taking place in stocks, you don't want to see a bunch of winning trades turn against you quickly. With proper trade management in this market, you can give yourself a great opportunity to maximize your trades. Open Position: GMCR, CAT, UA Stocks to Watch: INTC AAPL GOOG IBM AMZN ADBE LNKD FB TSLA GRPN CTXS CSCO NTAP JBL BAC C PRU WFC GS JPM MS RIG DE CMI CAT NFLX WDC GE AIG LULU DIS CROX STZ NKE UA LULU CHKP JNPR POT GMCR VZ T HOG MON YUM MCD LOW HD LEN TOL V MA AXP DFS LVS MGM |
| | | | | FUTURES: Technical Data | | | | | ES 1692.25 / 1686.25
POC… 1687.50 YM 15424 / 15344 NQ 3126.50 / 3115.00 | |
| | | | | COMMODITIES: Play of the Day | ---Patrick Assalone | | | | We had another successful week using the High Volume Areas in the
crude oil market. They are the most important indicator for our educational purposes. They act like magnets first repelling and then
attracting price back to these previously established levels. For crude oil, there is a significant High Volume Area from104.30 to 105.90 which will act as important support and resistance. Click here to watch video |
| |  | | is a leading investment education firm that empowers traders to achieve and surpass their financial goals. More than 50,000 students have used Larry Levin's proven techniques for powerful results. | | | | | | IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our website shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results. Trading Advantage LLC provides only training and educational information. By accessing any Trading Advantage content, you agree to be bound by the terms of service. Click here to review the terms of services. DAYTRADING involves high risks and YOU can LOSE a lot of money. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those talked about in our site. | | 
 
| |
No comments:
Post a Comment
Keep a civil tongue.