Debt ceiling or not, I believe the time has come for investors to take some cash off the table. The following chart present a possible scenario for the SPX, based on trading activity from September 2010 to September 2011. Cheers Algo
You probably read ( or reading) by now that yield are going bonkers today. 10-year Treasury notes surged seven basis points to 2.84 percent, the highest since Aug. 1, 2011. Taking a look at the ^TNX , the10 year treasury yield index and, ZN, the 10 year treasury note futures, we can see that they 're both approaching resistance and support point. This is...
Boeing 's Dreamliner continues to be a problem for Boieng. A Japanese airline reported wiring issue with the 787 yesterday. So far this year , AIRBUS is ahead of Boeing in term of orders ( 892 vs 775). Technically , the price broke it 's support this morning, so I'm short BA with a target around 96 - 97. I bought OCT 13 97.5 PUTS. Cheers Algo
The charts show that both the Nikkei and Yen are at crucial points. The Nikkei is at resistance, while the yen is at support. Based on previous price action, this data may suggest that it may be time to long the YEN . Cheers Algo
This week , the city of Detroit filed for chapter 9 bankruptcy protection. The city has debt obligation of $18.5 billions dollars. If you held Munis ETFs, such as MUB, this news didn't really affect the price, since most of these ETF have very little exposure to Michigan. However , they have exposure to other "time bombs" : Illinois, and California California...
I recently published a chart " time to get in gold and silver" ( ). Since winter 2013, there 's been a large sell-off in gold. Gold miners started their sell-off well before in December 2009. For 3 months now I've been paying attention to the gold miners ETF, GDX, as it was approaching a key support. Well this support has been "confirmed" by the Barrick Gold...
PAIR TRADE - MAT/V LONG (BLUE) ==> MAT, Mattel SHORT (RED) ==> V , Visa Correlation = 84 % Co - integration = 74 % avg. trade length = 14 days
For those of you watching the TSX ( not many I suppose) Loblaws, a major grocery story offer to buy Shoppers Drug Mart for 12.4 Billions dollars. Loblaws was surprisingly up 5.43 % vs. 24.1 % for Shoppers Drug Mart. For me . this represent a great merger and acquisition arbitrage opportunity. I already checked the fundamentals of both company. I don't expect the...
The Gold & Silver index ( XAU ) has reached a key support level. The last time it was there was in 2008. I'm also looking to go long the gold miners ( GDX) in a few weeks. Cheers Algo
I'm back in the spread between FEU and XLB . The last trade was quick and profitable. I added the charts of the ETFs ( top ) so you can monitor both the ratio and price action. cheers Algo
Both HSBC Manufacturing PMI numbers are down ,but India economy is in much worst shape than China's. For this trade we are LONG FXI and short INP . Average trade length is about 18 days . More detail on the chart. Cheers Algo
For this trade, we are long the Hong Kong and short Tawain. This should be a quick trade. Algo
This is how I visualize pair trade on my other platform. It may look confusing , but it's actually very simple. I use the Bollinger bands to measure standard deviation of a pair. When the ratio of the pair is at +/- 2.5 Std deviation( green lines I enter the trade. The correlation needs to be at least at 75 % + and co- integration at 70 % + . I exit the trade...
I don 't trade Forex, but a friend of mine showed me this chart here of the Aussie dollar futures vs Japanese Yen Futures. The correlation is pretty good . My question for the Forex traders here, do you expect the Aussie to follow the Yen ? By just looking at the chart, I'm tempted to go short. ( Aussie in Blue ) Algo
Utilities stocks are good leading indicators for the market. We can see on the chart that XLU ( Black and White Candle), has broken it's resistance. This is more visible on the weekly chart. Are we near the top ? will the markets follow ? Cheers Algo
The Nikkei is approaching historical resistance again. Are we expecting a significant correction ( 32 - 60 %) ??? What does it mean for the Yen ?? Cheers Algo
The market is up about 10 % this quarter, which is a nice start for 2013. However, it's at significant resistance as you can see on the log chart (blue). At the same time the dollar is quietly rising ,while gold is testing support. With all the trouble in Europe, are the investors looking at the U.S. dollars as the best "investment" for near term ? Can we expect...