ATM Calendar Spreads, Are You Aware of the Hidden Gotchas?

Today we have a special guest blogger, A.J. Brown of Trading Trainer.  A.J. Brown is widely recognized as "The World's Most Disciplined Option Trader."  He has been actively trading options for more than 10 years, and has published daily insights for his Trading Trainer members every single night, 5 days a week, since 2002.  Today A.J. will share some of his insights on calendar spreads. Be sure to comment with your thoughts and check out what A.J. is doing with Covered Calls these days at Trading Trainer.
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Over the years of being both an options trader and trainer, I have seen different option strategies that come into and out of vogue.  It seems almost cyclical, like fashion.

For me, every option strategy has its time and place to be traded.  I look at each option strategy as a tool for an application.  Rather than trying to apply a single tool to every situation, I prefer to assess the situation and pick the right tool. Continue reading "ATM Calendar Spreads, Are You Aware of the Hidden Gotchas?"

Elliot Wave, Fibonacci and, Candlesticks: Part 2

Today's guest is Gary Wagner of The Forex Gold Forecast who shared shared part one of his unique triple-play of forex gold analysis in a blog post titled, "A New Technical Triad and Gold". In part 2 of his strategy, Gary explores what is now happening in the gold market and what we might expect before fall.

We hope you enjoys today's post and leave your comments for Gary below.

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Where Might Gold Head This Summer

Trading the gold market might look easy when you consider that it has gone up $282 dollars in one year. However anyone involved in gold trading whether it be through Comex, Forex or Eft’s will tell you different.  This is part 2 of a blog which began on May 13, 2010 (you can find that post here).  In part one we spoke about the relevance of using Elliot wave, Fibonacci retracement and candlestick patterns as 3 tools well suited for market analysis and forecasting gold prices. This part two will continue where we left off. On May 13th we were nearing the top of wave 3 in Forex gold. Since that time we have completed that wave, seeing gold trade to a new historical high of first 1248, then after a correction (wave 4) to a new all time high in wave 5 of 1265.

Continue reading "Elliot Wave, Fibonacci and, Candlesticks: Part 2"

The 6 Advantages of ETFs

ETFs, or Exchange Traded Funds, have increased in popularity over the last few years, and for a number of reasons. Today, Price Headley of BigTrends.com, is going to give us the low-down on everything we need to know about this increasingly utilized financial product.

We hope you'll enjoy today's guest blog post and perhaps consider adding ETFs or ETF options to your portfolio in the near future. As always, we're interested in hearing what you have to say about this post or your experiences trading ETFS in our comments section.

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In recent years the popularity of ETF Options has exploded.  At BigTrends.com we have focused on ETFs for quite some time now.

The issue with ETFs and ETF Options has always been liquidity, but things have changed in that regard.  Due to the advantageous architecture of ETFs, more investors are hedging their portfolios with ETF options.  To understand the reason these vehicles are changing the options environment, let's take a look at the underlying securities and their benefits.

1. ETFs Trade Like a Stock - Unlike mutual funds or hedge funds which can only be entered or exited at the market close each trading day, ETFs can be bought and sold intraday.  They can even be day-traded just like stocks.  This advantage allows investors to make speculative bets on the direction of an index while still having the ability to exit the trade at any time of the day.  ETFs also allow short selling, as well as often being optionable. Continue reading "The 6 Advantages of ETFs"

An Old Fashioned View...

With the Dow back over 10,000, I like a few other people have been considering a taking a few more positions, sticking my neck back out if you will. This got me thinking about the very basic principles of the market. I wanted to share with you a brief list put together by my friend Hale of Bonddad Blog. These are a few basic points that still resonate with him while trading. What do you think, what are some of the basics that you'll never loose? Leave us a comment and be sure to visit Hale at Bonddad blog.

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For a guy who lives in the 21st century I have a remarkably old fashioned view of the market.  My favorite technical analysts -- Gartley, Murphy, Gann and Schabacker -- are some of the earliest practitioners of the art.  There are a few basic points from these people that still stand out for me.

First, you can make money on both sides of the markets – going long and going short.  This means we can always be invested so long as we know the market’s direction.  To know the market’s direction we need to know how the fundamentals of the US economy are doing – is the economy expanding or contracting?  This requires basic knowledge about the economy.  If you don’t know it, learn it. Continue reading "An Old Fashioned View..."

GM's 200 MPG+ Fantasy...

Everyone was shocked when GM took a gigantic government bailout. What was equally shocking to me was to see GM claim that in 2010, they would have a car capable of 230 mpg. Well, as we all know everything is not always as it seems. When I came across this article by Adrian Veidt, Senior Editor of Casey’s Extraordinary Technology I thought I would share it with you and get your take. The auto industry is changing, will GM be able to finally make the changes it needs to?

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A few weeks ago, Government Motors dropped a public relations bomb when new chief Fritz Henderson announced that the forthcoming Chevy Volt would get an astonishing 230 miles per gallon (that's 98 kilometers per liter, for our metric-system friends).

For those of you not yet familiar, the Volt is a plug-in hybrid car. The car runs primarily on electric power, with batteries charged overnight by simply plugging the car into an electrical outlet like a cell phone. Its gasoline engine is used only to charge the battery and supplement the power when the batteries run low. Continue reading "GM's 200 MPG+ Fantasy..."