What a perfect example Thursday is of using the global market to hedge falling equity values, that are moving lower while the U.S. market eats turkey. The fact that Wall Street and Chicago are closed on Thursday does not stop the global economy going about its business, and in the 24 hour global traded arena, access to a trade that hedges, trades, or insures a portfolio's moves, any time of day, is essential.Why watch European shares implode (they are off by 2% already) and sit waiting for the U.S. cash market to gap lower in 36 hours time, when the damage may already have been done? The S&P has dropped 1.5% since most were able to trade it, and if it opened right now would be at 1095.That sinking feeling is not for us, because we are constantly involved with Global Market Options trades and hedges, and doing it whenever the signals hit that the investment portfolio needs protecting.As the saying goes, This 'aint Grandpa's Market. Pre-market? No thanks, there have been too many years wasted by most investors and traders waiting for the 9.30 am opening bell and then playing catch-up while the smart money chuckled, as the headless chickens raced to align the damage that had already been done, or chased profit that had already been made.As retail traders and investors going into 2010, this is as level a global traded playing field as there has ever been, so get your game face on, and hedge that falling portfolio drop. No more 9.30am headless chicken dances, please. Game on, ready?
Position: N/A
|
|
Marco Hague
|
| Last Engulfing On The Dollar and Gold? |
11/26/2009 3:42 AM EST
|
Swissy got itself under parity ($1 recently), something last seen on Jul 15th 2008, when it then went on to move two thousand pips higher and top out at 1.2300 on 21st November 2008. Back then, the headlines were also screaming that the dollar was doomed when the swissy hit parity.Gold (Xau/Usd) Dec 1150 Put (Short gold from 1075).Eur/Usd Dec 1.4850 Put (Short euro from 1.5045).Usd/Jpy Dec 90.50 Call (Long Usd/Jpy from 88.20 that can be added to at 87.25 if the dollar finds buyers on Thursday).
Position: N/A
The hedge to a falling S&P, that is following an imploding German Dax, is a short Eur/Usd play.
A Dec Eur/Usd 1.4950 Put will do the job.
Position: N/A
A dose of reality hit the overnight global market, after the exuberance of the previous session that had yearly highs hit in equity, gold, and currency markets. The Japanese Nikkei reversed an early move higher, and in a pattern of trade that has become the norm, forced the European markets to battle over fair value.Today it seems that the equity sellers are in control, and by default that has allowed gold and oil to move lower, with the dollar moving higher. The price points of note on Thursday are; S&P 1098 and 1105, Oil 78.15 and 76.20, Gold 1198 and 1172, Dollar Index 74.90 and 74.00.
Position: N/A
|
RSS FEEDS
PODCASTS
