Is there an end to market falls (it’s getting too predictable! LOL) When will the market turn?
I am not hoping, or otherwise “willing” the market to move in my desired direction, but I’ve been watching signs for the next possible market moves and I believe we’ve got something here. All that problem in Europe – is about debt – and we kinda know this by now (if not, again, I blame the beer 🙂 ). Anyway, Greece elections are being called again, and though that means there is no government – I think one thing is for sure, the people there are voting against austerity.
In France, they voted against austerity.
In Germany, they voted against austerity.
Anyway, what has been causing the markets to crash is the political uncertainty. And the developments in the last few hours (yeah, its intense!) when the newly inaugurated French President hopped on to Germany and ironed out things with the lady in charge over there, in my opinion (and market experience)Â that may have removed that uncertainty. Maybe, both leaders had a swig at very good beer again and agreed to jointly pursue growth for Europe, and the other important thing is that, they want to keep the Greeks in the Euro. We’ve all got to be happy with that!
Stepping Up, Strapping In
Also I’ve read, that this week, the G8 nations will be meeting with President Obama. And we know, as election is nearing, this is a good time as any to announce “great new policies” to keep people happy. So could the markets move up now, please? 🙂
So with such thoughts in mind, I am stepping up, strapping in, to take a position for a market reversal (next move in upward direction), while still maintaining a careful protective position. This could be a “short window of opportunity” in this gloom. Just remember to manage the risks with position sizing, ensuring that even if you are wrong, you can still keep trading and the loss is small.
My trades today:
1. Buy to Close STORQ7 Covered Call Sold 58cents, buyback at 22cents
strike price was $13, Jun expiry
2. Buy to Open Buy Call STOUZ7 buy at 15cents
strike price is $12.50, May expiry – this is to profit for upward movement past 12.50 at short term.
3. Sell to Open STOTO7 sold at 68cents
strike price is 12.00, Jun expiry- this is to profit from downward movement past 12.25 (today’s closing price) at medium term. Even with 12.oo strike price, I have a buffer by using a longer dated option, with time value worth 43cents (68cents premium less intrinsic value of 25c (strike pricess less current price).
If you are able to have a high reward for low risk, this is an opportunity.
May the Fierce be with you!
Here’s that Reuters article:
http://www.reuters.com/article/2012/05/15/us-germany-france-idUSBRE84E19C20120515
