Hello All,
Obama signs the jobs bill and our dollar strengthens. Commodities were lower as they became more costly for holders of foreign currencies. And tomorrow is triple witching day where stock index futures, stock index options, and stock options expire on the same day. You can usually expect added volatility as institutional investors shuffle around positions in their portfolios.
1) Sell June Emini S&P at the market (1161), with a 1172 stop. Exit Monday. Volatility has been low as of late and if one were to bet on increased volatility then it would be associated with downward/corrective action. And the downward pressure will prevent call sellers from paying up at expiration. We can also note that they are to vote on the healthcare bill as early as Sunday, so many investors may take their money off the table until we see what happens with the bill first time around.
2) Sell June Euro at 1.3636, with a 1.3687 stop. Exit Monday. Further concerns with Greece as they are notioning that they would request assistance from the IMF if the EU leaders cannot setup a lending facility at a summit next week. The weakness in the Euro will continue to resonate in outside markets.
3) Sell May Crude at the market (82.36), with a 83.30 stop. Exit Monday. April expiration is on Monday so we'll roll to May which is trading roughly 30 cents higher. Crude was lower for the first day after 3 sessions, but it did hold its ground with respect to the strength in the dollar. Crude inventories have risen to the highest level of 344 million barrles since August and demand had the biggest 1 week drop (4.2%) since Nov.
4) Sell April Gold at the market (1124.4), with a 1133 stop. Exit Monday. Additional strength in the dollar should weigh heavily on metals. Lower channel support is just above 1100, so its possible to get a hefty decline tomorrow through Sunday.
Best,
Arman Vahdatinia
Futures & Options Strategist
1-877-338-EXPO [3976] ext. 25
www.ExpoFutures.com
*There is a risk of loss trading futures. Past performance is not indicative of future results.
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