Originally posted by R.Cox. For the full trading breifing click here
My Trading Recommendations in 50 words 1.
With the Fiscal Cliff deadline not being seen until trading starts next week, it is better to wait for the event risk to pass before entering into new positions. A negative outcome could create volatility in risk currencies, however, and I will be looking for monthly CALL options in the EUR/USD if prices trade back to 1.3130
. This longer time frame will allow the “dust to settle” if we do see a negative Fiscal Cliff outcome, and analysts will be forced to start looking at data releases for the next trend direction.
Last week’s reduced volatility led the previous CALL in Gold
to barely end the week in the money but the asset still represents the best hedge against a negative Fiscal Cliff outcome I will be looking to draw from the well once again and enter into monthly CALLS near 1650
. Weekly trades this period are too risky, given the proximity of the Fiscal Cliff deadline.