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  1. #1
    Administrator Martin Kay's Avatar

    New Tips by Richard - MCD, CSX. Monthly Calls 28/01/-04/02/13 !!!

    Hi guys,

    Richard's new weekly market analysis and trading tips are here. He predict a volatile week with a lot of economic news ahead, including US Non Farm Payrolls, FOMC rate decision, Chinese GDP figures and important Eurozone info. Check his review and read in details what we could expect from the upcoming week!

    Originally posted by R.Cox. For the full trading briefing click here.

    Looking ahead, next week will be action-packed, with a large number of economic indicators and earnings reports scheduled for release. Currency traders should be preparing for the monthly US Non Farm Payrolls, Durable Goods Orders, and 4th Quarter GDP. We will also have Unemployment figures for the Eurozone and an FOMC rate decision to guide traders. NFPs are expected to show a gain of 168,000 jobs (a modest improvement from the 155,000 jobs added last month). The rate decision is not expected to show any major changes but if we see the Fed discuss potential ending points for its stimulus programs, expect a negative effect to filter over into stock markets.

    For stock traders, the earnings reports scheduled are numerous. Topping the list will be Boeing, Amazon, Caterpillar, Pfizer, Exxon Mobil, and Facebook. Traders watching the broader indices will probably see two-way movements given the sheer number of majors releases on scheduled. These types of environments actually favor short term trades as there is simply too much information to commit to weekly positions.


    My Trading Recommendations in 50 Words

    1. Recent earnings strength is likely to support stock prices longer term, and here we will look to avoid next week’s volatility by using monthly options. First selection is a monthly CALL in McDonald’s (MCD) at $93. MCD is trading nearly 10% below its intrinsic value and its dividend yield of 3.5% should remain a supportive factor.

    2. Second selection is a Monthly CALL in CSX Corp. at $22. Last week’s earnings report passed analyst expectations and technical formations remain constructive, suggesting a bull run above $25. The company is a transportation supplier and likely to benefit from last monthly improved holiday shipping conditions.

  2. #2
    Rookie Member
    Great review, Richard!

    This week will be full of surprises and volatile movements. All we have to be prepared for them. I think the EURO could goes in both directions, the stock indexes are still very strong but the risk of unpredicted retracement increase every day. The problem is that the biggest shaker is the NFP on Friday and that mean the market could continue to range the entire week before it is announced.

  3. #3
    Legendry Member Michael Hodges's Avatar
    this is a big big week for data and earnings. I think MCD is a good call.

  4. #4
    Senior Member Deanfx's Avatar
    Fed's Monetary Policy Statement and press conference and Fed Interest Rate Decision are on Wednesday at 19:15 GMT. What do you expect from them? Do you think they could show some surprise or they won’t. I personally think there will be enough volatility during those hours and possibly some strong movements. I expect breakout of the EUR/USD range. My guess is for upside movement but it is only a probability.

  5. #5
    Master Member vinayakm's Avatar
    Quote Originally Posted by Martin Kay View Post
    Hi guys,

    Richard's new weekly market analysis and trading tips are here. He predict a volatile week with a lot of economic news ahead, including US Non Farm Payrolls, FOMC rate decision, Chinese GDP figures and important Eurozone info. Check his review and read in details what we could expect from the upcoming week!
    I had a lot of luck with the DAX and the S&P 500 already. Tomorrow's a huge day for the US financial markets with the Advance GDP number, the FOMC and the Federal Funds Rate being announced. I guess there won't be a change in the rate which is to be expected, but it is still a big event. Looking forward to another eventful day of trading tomorrow.

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by vinayakm View Post
    I had a lot of luck with the DAX and the S&P 500 already. Tomorrow's a huge day for the US financial markets with the Advance GDP number, the FOMC and the Federal Funds Rate being announced. I guess there won't be a change in the rate which is to be expected, but it is still a big event. Looking forward to another eventful day of trading tomorrow.
    Yeah, I don't expect much from the FOMC except a statement. The details will be important and could mover the markets. I for one will be looking for signs of an end to asset purchases by the Fed Reserve.

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