Tag

recession Archives - Options Trading Strategies for Consistent Income - OptionPundit

“O-BenTi” Trio Might Finally be Winning

By | Investment Strategy, Market Psychology, US Market | 3 Comments

Obama, Ben and Tim (O-BenTi, I just created this name to save writing space) might finally be winning the recession war (only time will tell whether or not it is sustainable or going to result in another bubble). Their “glimmer of hope” campaign seems to be working nicely; even the consumer sentiment index says so, offering a hint that the deepest part of the recession may be passing. According to Bloomerg : Reuters/University of Michigan’s consumer sentiment index rose solidly to 61.9 vs. 57.3 two weeks ago. Interestingly, one-year inflation expectations shot up 1 full percentage point to 3.0 percent….

Read More

As Bad As It Gets

By | Daily Report, US Market | No Comments

U.S. nonfarm payrolls plunged by over half million, a bad surprise of 533,000 job losses in November. This is the worst job loss in 34 years according to the Labor Department. Since the recession began 11 months ago, nearly 2 million jobs have been lost. As per marketwatch story, The unemployment rate rose from 6.5% in October to 6.7% in November, the highest jobless rate since October 1993. Although the market expected to hear bad news from the November employment report, no one expected news as bad as we got. Economists expected job losses of around 350,000 in November. Job losses in September…

Read More

Where are the Markets Heading?

By | Investment Strategy, Market Psychology, Technical Analysis, US Market | 5 Comments

Below charts and rough technical analysis is not to paint a grim picture but is rather an attempt to define a range for the downside. It’s better to develop trading plans with the worst case scenario in mind vs. developing plans on pure hopes and dreams. I don’t argue that equities are starting to show value and in fact I am already working to develop an OPN value portfolio design to double in next 5-6 years riding on the trends that are about to emerge in the new world post financial crisis clean-up. I think no one can time the…

Read More

Panic Before Everyone Else Does

By | Market Psychology | No Comments

Market forecasting is one thing and profiting from it is altogether another thing. OPNewsletter subscribers know how accurate so far my warnings had been and I did panic before everyone else did but did I benefit by opening pure bearish trades? In the hindsight, I could have made a killing but did I? No! Sure it did help me in unloading my bullish positions though. In spite of having such an accurate forecast I couldn’t reap extra ordinary benefits from it. I thought through this and here is the part of my trading decision making. Bear markets tend to have quick…

Read More

Get Real or Go Home

By | Market Psychology, US Market, Worldwide Markets | 2 Comments

It took almost 5 years of Bull markets for Auzzie $ to reach its peak against US$ and just 5months to give it all back. The picture is not so much different for British Pound as well. The once mighty US$ is back with full force, against all convetional wisdom and doomsday forecasts, and almost all currencies have given-up vs. US$ except JPY. The 2nd largest economy’s currency is standing tall against US$. It has appreciated to 95 a U$, a level not seen in the last decade. Billions, if not trillions, have been made or lost in the Forex markets…

Read More

OPNewsletter : Oct’08 (+9%)

By | OP Newsletter, Past Performance | No Comments

What a tubulent week! For the week ending Oct 17, here is the market tally. Dow closed at +4.7%, S&P500 almost similar +4.7%, NDX: +3.3%, Nasdaq (COMPQ) +3.6% and Russell 2000 almost flat at +0.75%. For OPNewsletter, it was rather an unusual month. We opened one mini-portfolio consisting of options in Russell 2000, that was officially closed for +9% gains including commissions. Thereafter sensing market collapse I stayed away from investing for OPNewsletter we were in cash throughout the past 4weeks. Cash surely outperformed the market during which Dow lost almost 3,000 points. The results doesn’t include my trade alerts for speculative trades…

Read More
DISCLAIMER AND NOTICES: None of OptionPundit or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial advisor, a registered investment adviser or a registered broker/dealer. Options involve risk and are not suitable for all investors. All investors who deal with options should read and understand the publication "Characteristics and Risks of Standardized Options." A copy of this publication can be obtained by clicking on this link. OptionPundit does not promise, guarantee or imply verbally or in writing that anything taught through our newsletter, in any printed material, or displayed on our website will necessarily result in a profit. OptionPundit is the copyright owner of all text and graphics contained on this website. Copying, publishing or redistributing any material in any way without the written consent of OptionPundit is strictly prohibited.The owners, publishers, and agents of OptionPundit are not liable for any losses or damages, monetary or other that may result from the application of information contained within this website and/or newsletter. Within this website, we publish materials that meet specific criteria representing characteristics associated with described trading strategies. Individual traders must do their own due diligence in analyzing featured options to determine if they represent a suitable opportunity. OptionPundit and any of their agents, affiliates, representatives, employees, principals, business associates or affiliates, partners or independent contractors are not responsible for any losses or profits that may result from the application of information contained within this website and/or newsletter. Past performance is not indicative of future results. Option trading involves substantial risk. You can lose money trading options. The past results posted on this site are meant to give you a reasonable idea of what you could have made or lost trading by following the OptionPundit service but are in no way an exact reflection of what you would have made or lost. Therefore, you should not rely on our past trade results as a perfect replication of what your returns or losses would have been by following our service. There are inherent risks involved in the stock market and these risks should be considered prior to any decision. The representatives of OptionPundit may or may not hold a position in any stocks listed at the time of publication and reserve the right to buy or sell any security, option, future or derivative product without notification. Nothing published by OptionPundit should be considered personalized investment advice. Although the OptionPundit team may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by the OptionPundit team to you should be deemed as personalized investment advice. OptionPundit products are delivered electronically by email and by access to a membership area where trade alerts and special alerts are posted. ©2015 OptionPundit. All rights reserved. Terms of use apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law.