Hello MarketClub members everywhere. The markets are mixed Wednesday as traders assess the start of Brexit, which is Britain's divorce from the European Union. Of course, this was expected, and the market's reaction shows that.
Crude oil is on the move today, gaining almost 2% on the second day of gains. This came after the government reported a larger-than-projected decline in U.S. gasoline inventories.
Key levels to watch this week: Continue reading "Markets Mixed As Brexit Starts"
Hello MarketClub members everywhere. Stocks have bounced back from their session lows as traders turn their attention to some key White House proposals that include tax reform.
The Dow was down as much as 183 pts this morning, continuing an eight-day streak of losses The S&P 500 pulled back 0.1%, also off its session lows. The Nasdaq has recovered from earlier losses to trade 0.2% higher.
Crude oil has fallen today, continuing the trend from last week as a pledge by OPEC-led producers to consider extending their output cut deal failed to excite traders. They expressed concern that they will need more time to trim global stockpiles.
Key levels to watch this week: Continue reading "Stocks Recover From Early Losses"
We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Gold futures in the April contract settled last Friday in New York at 1,230 while currently trading at 1,245 as I was recommending a short position and stopped out early in the week taking a very small loss as the momentum continues to the upside due to the fact that the U.S dollar is now near a 7 week low pushing up the precious metals in the last couple of weeks. At present, I'm sitting on the sidelines waiting for a trend to occur as prices are now trading above their 20 and 100-day moving average looking to retest the February 27th high of 1,265 & if that is broken you have to think prices would continue to move higher. The main catapult was the fact that the Federal Reserve stated that they will slow down on interest rate hikes sending gold prices from 1,200 up to today's price levels, but this market remains choppy in my opinion as the risk/reward is not in your favor as there are very few trends at present. The Obama care replacement has caught a couple of snacks also sending the stock market lower this week and gold prices higher, however, I still believe that will be resolved as money flows have been entering the bonds and gold this week. Continue reading "Weekly Futures Recap With Mike Seery"
I’ve written many articles highlighting the advantages options trading and how this technique, when deployed in opportunistic or conservative scenarios may augment overall portfolio returns while mitigating risk in a meaningful manner. Here I’d like to focus on leveraging cash-on-hand to engage in options trading, more specifically selling covered puts. In laymen’s terms, I’ll cover option variables, an example, strategy and empirical results with commentary.
1. Why buy a stock now when you can purchase the stock in the future at a lower price while being paid to do so?
2. Why buy stocks at all when you can make money on the underlying volatility without ever owning the shares?
Timing the market has proven to be very difficult if not altogether impossible. However creating opportunities to lock-in downward movement in a given stock one is looking to own is possible. If a stock of interest has substantially fallen to at or near a 52-week low, then one has an option to “buy” the stock at an even lower price at a later date while collecting premium income in the process. Alternatively, it's also possible to make money on the option itself without owning any shares of the company via realizing options premium gains as the underlying stock appreciates in value off its lows. This is called a covered put option, covered in the sense that one has cash to back the option contract. Leveraging covered put options in opportunistic scenarios may augment overall portfolio returns while mitigating risk when looking to initiate a future position in an individual stock. In the event of a covered put, this is accomplished by leveraging the cash one currently has by selling a put contract against those funds for a premium. It's also possible to make money on the option itself without owning any shares of the company via realizing options premium gains as the underlying stock appreciates in value. Continue reading "Realizing Gains Without Owning Shares Via Leveraging Cash"
Hello MarketClub members everywhere. The markets are relatively unchanged on the day as traders await the outcome of the vote on the healthcare bill that is seen as a test of President Donald Trump's ability to pass his legislative agenda through Congress.
Stocks suffered their worst day of the year on Tuesday of this week, largely due to the concerns about the healthcare vote. The DOW and S&P 500 indexes recorded their first 1% declines since Oct. 11, 2016.
Key levels to watch this week: Continue reading "Stocks Stuck On Hold As Healthcare Vote Looms"
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