October 9th, 2009
"Your book (Commodity Options) just paid for itself 358 times today...I'd call that a good investment any day!!! I'm buying 2 next time"~Jonas Miller. Pick up a copy of "Commodity Options" at any major bookstore or online outlet!
Friday was a painfully quiet slow grind higher
Our friends on the CME trading floor mentioned at one point in the day that there were only 30 locals standing in the S&P trading pit, this is about 100 less than what might be seen on a good day. They also mentioned that those that were there, must have been married (aka nothing better to do). I think that this best sums up the uneventful trading session.
The most significant news story of the day was President Obama's victory in the Nobel Peace Prize award but I doubt that the news had anything to do with equity market gains. Instead it seemed to be a continuation of the never-ending short squeeze. Since March, all sell-off have simply been a trap for determined bears and they have been feeling the pain.
The trend is up and it seems like this will be the case going into next week. We see resistance at 1075 then again at 1095 in the S&P. However, we doubt that the market will be able to post gains above the noted levels without some type of pullback. Therefore, the bears should be ready to act but at the same time it is important to get a good entry. We were hoping for a move up to 1075ish today in order to provide traders an opportunity to sell calls and/or buy puts at better prices but the steady but strong close seems to favor a move beyond the original 1075 resistance area. Accordingly, we prefer to be patient; we will see what next week brings.
We are still looking for 1075 in the NASDQ and 625 in the Russell as preliminary objectives. However, there seems to be a good chance that the Russell will reach 635 or so before the rally fizzles.
We certainly aren't perfect and we don't have a crystal ball either. Nonetheless, we have managed to call the markets pretty well this year. Here are just a few...Does your broker do this for you?
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track 'n Trade, Gecko software.
**Seasonality is already be factored into current prices, any references to such does not indicate future market action.
Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations are based the full sized S&P unless otherwise noted.
S&P 500 Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Russell Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
NASDAQ Futures and Options Trading Recommendations
**There is unlimited risk in naked option selling and futures trading
Position Trade -
Flat
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
1-866-790-TRADE
Local : 702-947-0701
http://www.carleygarnertrading.com/
http://www.decarleytrading.com/
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
