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  1. #1
    Administrator Martin Kay's Avatar

    Hot New Tips by Richard - EUR/USD, TXI Weekly and Monthly Expiry 25/02-04/03/13 !!!

    Hi guys, Richard's new weekly market outlook is here!
    The results of the Italy election will give some tone for the EUR/USD trading and also a lot of US retailers reports will be an important factor for the stock market direction. Check Richard’s tips and find what is heading for the new week!

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

    Global stock markets finished with mixed performances last week, as the Nikkei 225 and S&P 500 posted declines (the first weekly decline of 2013), while the DAX and FTSE 100 moved higher. A large part of this activity was based on the differences seen in central bank comments, as there is mounting evidence that the US Federal Reserve will have room to start cutting back on its stimulus program while the central banks in the UK and Eurozone have received comments suggesting that bond buying programs might increase throughout the year.

    Additional positives for the Euro area were seen with the German ZEW and IFO surveys, which came in much higher than markets had expected, and this is an indication that business confidence is improving in the region’s largest economy. It is clear that the central bank commentary was the main driver of the week, however, as both the Euro and British Pound fell as stock markets in those regions gained. Stimulus programs tend to have this effect on these different markets, and this is a suggestion that traders are looking past the short term economic data and considering the longer term view.


    1. Next event in line for the fate of the EUR/USD can be seen with the Italian elections. A Berlusconi victory would not be Euro positive, so if he loses I will buy weekly CALL options on a Monday break in the EUR/USD above 1.3230. This would also capitalize on some of the recent weakness in the pair and we can play the Euro from the other direction relative to last week, not that the downside has reached extreme short term territory.

    2. In stocks, we will look to play some of the expected downside correction using Texas Instruments (TXI). The company showed weakness in its latest earnings report, is currently trading at a price to earnings ratio of 87 (excessively high), and is showing bearish technical signals on daily charts. Look to buy monthly PUT options on TXI at 60.

  2. #2
    Specialist Member marvel's Avatar
    The positive sentiment is back again in the stock market. DAX rised fast after Frankfurt open and US indexes are also up. Interesting start of the trading week. Do you know what are the results of the Italy elections?

  3. #3
    Junior Member
    Quote Originally Posted by marvel View Post
    The positive sentiment is back again in the stock market. DAX rised fast after Frankfurt open and US indexes are also up. Interesting start of the trading week. Do you know what are the results of the Italy elections?
    Agree with you marvel! Europe sentiment this week was greatly improved after the Friday ZEW news and after the Italian election this week starts with great euro optimism and DAX is also strongly UP! Let’s see how long this optimism will last I bet not too long!

  4. #4
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Current rally in eur against usd represents optimism of investors in Italian elections.
    @R.Cox. I am sure u have already entered into weekly calls as the resistance level is already broken.

  5. #5
    Specialist Member RCox's Avatar
    The preliminary election results in Italy have shown conflicting signs, with the more economically flexible (Euro Bullish) candidate looking like the winner initially. The tide is turning at the moment, however, and it could be the case that the initial polls were inaccrate. Euro is taking a big hit in the last few hours, so the next main driver will clearly come with the final results.

  6. #6
    Specialist Member runneroption's Avatar
    As usually happens the market made all the possible movements before finding its direction. Today was a very dangerous day for most traders, as the movements were difficult to be predicted, but the intraday traders had a lot of short term opportunities if they read the tape right

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