May
15
USD/CHF Range Bound Before Next Leg of Bullish Rally
US data surprised in its stability this week. Retail Sales came in line and while a slightly lower CPI did not discourage 90.6% of traders pricing no change in US interest rates into Fed Funds futures contracts. Remaining dollar data comes from less vulnerable areas of the economy and is not likely to spark significant re-pricing of expectations. Levels to Watch: Range Top – 74.00 (50% Fib.)                               Range Bottom – 71.50 Event Risk for the United States and Switzerland US – The remaining items on this week’s calendar are […]
May
10
To Fill or Not To Fill(The Gap)…That is the Question.
The big question this week: Will the SPY and the Major Indexes close their gaps, or do they stop here? On January 4th., the markets gapped down at the open. The gaps have yet to be closed. The SPY closed at 138.90 on Friday, just 3.72% away from closing its 144.07 gap. But, at the same time, the SPY tested its October/May resistance line on May 2nd and May 6th. The SPY was unable to penetrate the resistance both times. The SPY has moved lower since its May 6th […]
Apr
30
Let the Dragon “Bird-Dog” for Unusual Option Activity
Track major changes and spot potential trading opportunities with the Dragon. Scan the market in real time for a top 50 ranking of matching stocks and their options based upon one of the following criteria: Stock Activity – stock volume, the stock’s options volume; P/E ratio, open interest or volatility Option Activity – option volume, open interest or implied volatility % Change – open interest, stock or option volume, put/call ratios or volatility – implied or historical P/E Plays – volatility plus open interest, volatility plus volume Below you will […]
Apr
28
The Taylor Rule & Interest Rates
The Taylor Rule With the upcoming FOMC meeting and as always the speculation of what might happen to interest rates I have decided to give you something to think about. The Taylor Rule is something that all good Fundamental Analysists use to project where the Fed might move rates. What is the Taylor rule? Central bankers consider a wide range of variables and economic indicators when setting interest rates. Essentially however, all central banks have the same basic objectives-economic growth running at potential and inflation on target at some specified […]