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  1. #1
    Administrator Martin Kay's Avatar

    Hot New Tips by Richard - EUR/GBP, SP500. Weekly Expiry 11-18/02/13 !!!

    Hi guys, Richard's new weekly market analysis is here!
    His market overview for the upcoming week shows a lot of changes in the market sentiment and new opportunities in play. Check it out!

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

    The S&P 500 closed higher for the 6th consecutive week, as budget agreements in the US and Eurozone were taken alongside another week of better than expected corporate earnings releases. The combination of these factors helped propel positive sentiment (even with markets at elevated levels) but with limited macro data and a slow earnings calendar next week these markets are now vulnerable for a downside correction as investors start to take profits at these higher levels.

    1. The EUR/GBP saw a massive drop last week and longer term this is expected to continue as the fundamental picture has not matched with the technical picture in recent months. At this stage, its just a matter of deciding on price levels and with last week’s top at 0.87, we can look for weekly PUT options in the EUR/GBP at 0.8520.

    2. With little in the way of fundamental drivers for stocks next week, I expect some profit taking in the S&P 500 and the current elevated levels look good for weekly PUT options at 1520. Earnings reports are mostly second-tier so we would need to see significant surprises to run higher here near term.

  2. #2
    Master Member vinayakm's Avatar
    Quote Originally Posted by Martin Kay View Post
    Hi guys, Richard's new weekly market analysis is here!
    His market overview for the upcoming week shows a lot of changes in the market sentiment and new opportunities in play. Check it out!
    Talking about the Euro and the EUR/GBP, the big event for tomorrow will be.. drum roll please! Mario Draghi's speech at 3:30PM GMT. But this time it is in Madrid at the Spanish Congress. I wonder if it will have the same effect.
    Last edited by vinayakm; 02-11-2013 at 06:32 PM.

  3. #3
    Active Member
    Do you think vinayakm that the effect will be so strong as last week? I think it could be even stronger but it is not excluded that the movement will be north, not south haha

  4. #4
    Specialist Member RCox's Avatar
    We are seeing some up waves in EUR/GBP but these are all sells for traders that are not yet in bearish positions.

  5. #5
    Active Member pipshunter's Avatar
    Quote Originally Posted by RCox View Post
    We are seeing some up waves in EUR/GBP but these are all sells for traders that are not yet in bearish positions.
    You think, RCox that EUR/GBP is heading south? That mean GBP will outperform EUR in the next few weeks?

  6. #6
    Specialist Member RCox's Avatar
    Yes that is what it means to trade currency pairs. Have you done any homework yet on this subject buddy?

  7. #7
    Legendry Member Michael Hodges's Avatar
    I agree that the S&P is looking ripe for profit taking or correction. Puts for protection may be a good idea. I have been toying with the idea of entering calls and puts at the same time in a kind of straddle trade. For example, I may enter a $100 call trade with a $60 put trade. If the call profits it'll net $15-$20 of profit and ifthe put profits that will yield about $5-$10 profit on the trade....What do y'all think about that idea?

  8. #8
    Solid Member Murphy13's Avatar
    Still there is a room for upside. Even it already touches fresh highs SP500 is very difficult to predict. I will wait to see the next week price action. I agree there is much more probable a good correction now, but it could be still weeks ahead and nobody could predict.

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