Originally posted by R.Cox. For the full Trading briefing Click Here
1. The worst case estimates for a negative conclusion in the Fiscal Cliff talks call for as much as a 4% decline in US economic growth so while those estimates seem excessive, expect the continued focus on this topic to support the US Dollar. I will be looking to take Weekly PUT options
in the AUD/USD
at current levels, looking for a drop to at least 1.0250
2. Bearish sentiment in stocks continues, and the FTSE100
is trading at some suitably bearish levels for PUT options (below 5640).
I will take Weekly PUTS
here, in what could be a massive drop into the mid 5400s before we see any significant corrections. Rallies above 5730 negates the bias.