Bear Bull or Bunny

Daily Newsletter From Larry Levin.... Having trouble reading this email? View the online version Bear, Bull or Bunny Bulls may have to look for the Easter Bunny (does Janet Yellen wear costumes) this week. Things could be dicey with renewed geopolitical jitters as Ukraine moves back into the forefront. Oleksander Turchinov said in a televized address that Ukraine has mobilized its armed forces to launch a "full-scale anti-terrorist operation" against pro-Russian separatists. Furthermore, knowing the only real escalation Kiev can engage in is in the war of words department, Ukraine set an 0600 GMT Monday deadline for pro-Russian separatists to give up their weapons and leave buildings they have occupied in the east of the country, a presidential decree said. It is unclear if this would be the catalyst to launch the military operation, but should Kiev indeed bring in the army it is certainly clear that Russia will respond in kind. The Markets were slightly lower in Asia (Nikkei 225 -0.36%) after the reports of exchanged gunfire with pro-Russian militants. This sentiment carried over into the European session with stocks lower across the board (Eurostoxx50 -0.71%). Probably more important is that Draghi said any further strengthening of the EUR would warrant further action by the ECB, including non-standard measures such as quantitative easing - it is amazing how frequently and often the Virtu algos still fall for Draghi's jawboning trick which has now become all too clear will never be implemented and certainly not if he keeps talking about it daily, as he does. Which animal will dominate this week? Read Past Issues of Larry's Newsletters at TradeWithLarry.com STOCKS: Watch List We finished the week off with a volatile session, as the major averages finished off down for the session. With a strong possibility of a rebound, the markets flashed in the green, only to have sellers take advantage and extend losses even further. With the suppression taking place, a profit taking rally did happen. Only to have any upside rebound get thwarted quickly by sellers looking for value. Stocks reflected this action by swinging back and forth, only to close down for the day. With another selloff happening near the close of the session, it showcased that people took short positions into the weekend. While I do expect a small pop on Monday, we could see yet another extension to the downside..................Read More FUTURES Technical Data ES 1823.00/1811.50 POC 1819.25 YM 16042/15972 NQ  3479.75/3443.75 OPTIONS: Volatility Commentary It's capital intensive and higher risk to short options without a corresponding hedge. But, there are times when implied volatility is high that it is prudent to construct a net short position. The reward of shorting an at-the-money straddle or near-near-the-money strangle is quite large, but along with that comes high (potentially limitless) risk. It will take significant margin and extremely close risk management to properly execute these types of trades. Is there a less risky way to accomplish this? There is, especially if you have a directional bias as well. Consider a ratio vertical................... Read More IMPORTANT NOTICE: The risk of loss in trading futures, options on futures, stocks and stock options can be substantial and is not suitable for all investors. Past performance is not necessarily indicative of future results. Trading Advantage LLC only provides educational services. By accessing any Trading Advantage content, you agree to be bound by the terms of service. Click here to review the terms of services. The hypothetical signal results shown above represent signals offered in real time in the training room. A signal does not get posted unless there is a reasonable likelihood that if an order had been placed it would have been executed. Further, adjustments are made to simulate the costs of commissions. Past performance is not necessarily indicative of future results. The posted information is shown for educational purposes only and no signal shown was actually executed as a trade 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. Copyright 2014 Trading Advantage Our address is 111 West Jackson Blvd, 1122, Chicago, IL, 60604, USA Click here to opt out (You can also send your request to Customer Care at the street address above.)