Sunday, December 12, 2010
Tuesday, November 30, 2010
Options Backspread Basics: Put Ratio Backspread | Options Like a DPM Webinars #7
Next webinar: "Ratio Spreads" December 7, 2010 at 1800 CT. Register at http://hamzeianalytics.com/pow_register.asp
http://hamzeianalytics.com/pow_regist... - The Admiral, a former CBOE Designated Primary Market Maker, shows how to design a put ratio backspread for a stock that one believes has a potential for a big decline. To take it a step further, once the put ratio backspread is constructed, the Admiral goes through an exercise of changing the expected implied volatility to see how the backspread may perform in different volatility environments. The example stock used is Verizon (VZ)
This an excerpt from "Trade Options like a DPM Webinar #7: Backspreads" -http://hamzeianalytics.com/pow_regist...
"BACKSPREADS" OPTIONS WEBINAR DESCRIPTION (NOVEMBER 11, 2010, 1800 CT)
A type of options spread in which a trader holds more long positions than short positions. The premium collected from the sale of the short option is used to help finance the purchase of the long options. This type of spread enables the trader to have significant exposure to expected moves in the underlying asset while limiting the amount of loss in the event prices do not move in the direction the trader had hoped for. This spread can be created using either call options or put options.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Options Backspread Basics: Call Ratio Backspread | Options Like a DPM Webinars #7
Next webinar is December 7, 2010 at 1800 CT. Register at http://hamzeianalytics.com/pow_register.asp
http://hamzeianalytics.com/pow_regist... - The Admiral, a former CBOE Designated Primary Market Maker, kicks off his 2-hr long options education class on Backspreads by explaining how to construct a Call Ratio Backspread. The Admiral explains why each leg is put on to form the backspread. The Admiral walks through the logic and considerations of how price and especially volatility changes will affect the performance of the backspread. The example stock used is Caterpillar (CAT) with technical analysis of targets and expectations given by Fari Hamzei.
This an excerpt from "Trade Options like a DPM Webinar #7: Backspreads" -http://hamzeianalytics.com/pow_regist...
"BACKSPREADS" OPTIONS WEBINAR DESCRIPTION (NOVEMBER 11, 2010, 1800 CT)
A type of options spread in which a trader holds more long positions than short positions. The premium collected from the sale of the short option is used to help finance the purchase of the long options. This type of spread enables the trader to have significant exposure to expected moves in the underlying asset while limiting the amount of loss in the event prices do not move in the direction the trader had hoped for. This spread can be created using either call options or put options.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Options Backspread Trade Adjustment Considerations | Options Like a DPM Webinars #7
http://hamzeianalytics.com/pow_register.asp - In this excerpt from this 2-hr long options education class, the Admiral explains the various considerations when looking to adjust an options backspread. According to the Admiral, you must be fully aware of the overall market landscape, how the stock you're trading is acting in that environment, and especially how the options for that stock behaves. Options are not linear, so trades can not expect the option to behave the same on different days, different price levels, and different volatility environments.
This an excerpt from "Trade Options like a DPM Webinar #7: Backspreads" - http://hamzeianalytics.com/pow_register.asp
"BACKSPREADS" OPTIONS WEBINAR DESCRIPTION (NOVEMBER 11, 2010, 1800 CT)
A type of options spread in which a trader holds more long positions than short positions. The premium collected from the sale of the short option is used to help finance the purchase of the long options. This type of spread enables the trader to have significant exposure to expected moves in the underlying asset while limiting the amount of loss in the event prices do not move in the direction the trader had hoped for. This spread can be created using either call options or put options.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
http://hamzeianalytics.com/pow_register.asp - In this excerpt from this 2-hr long options education class, the Admiral explains the various considerations when looking to adjust an options backspread. According to the Admiral, you must be fully aware of the overall market landscape, how the stock you're trading is acting in that environment, and especially how the options for that stock behaves. Options are not linear. In other words, trades can not expect options and option spreads to behave the same on different days, different price levels, and different volatility environments.
Tuesday, November 2, 2010
Analyzing Long Options Strangles from All Angles | Trade Options Like a DPM Webinars #6: Strangles
http://hamzeianalytics.com/pow_register.asp - The Admiral, a former CBOE designated primary market maker, breaks down the long options strangle strategy. He shares many considerations and ideas about putting together a options strangle position, and analyzing possible outcome scenarios so traders can be prepared. Fari Hamzei adds his market timing and technical analysis expertise.
This a Q&A excerpt from "Trade Options like a DPM Webinar #6: Strangles" - http://hamzeianalytics.com/pow_register.asp
"STRANGLES" OPTIONS WEBINAR DESCRIPTION (October 20, 2010, 1800 CT)
An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Sunday, October 31, 2010
Strategy Session: Amazon (AMZN) Earnings Options Trade Analysis | Options Like a DPM Webinars #6: Strangles
http://hamzeianalytics.com/pow_register.asp - Usually Fari and the Admiral analyze and design options trades behind the scenes, then sends out the trade idea to Hamzei Analytics HFT subscribers when the trade is ready to be entered. During the Q&A of this webinar, Fari and the Admiral decide to show they put their heads together for high impact news driven trades - this time the AMZN earnings to be announced the day after this webinar.
This a Q&A excerpt from "Trade Options like a DPM Webinar #6: Strangles" - http://hamzeianalytics.com/pow_register.asp
"STRANGLES" OPTIONS WEBINAR DESCRIPTION (October 20, 2010, 1800 CT)
An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Thursday, October 28, 2010
Special Case of Weekly Options (GOOG Example) | Options Like a DPM Webinars #6: Strangles
http://hamzeianalytics.com/pow_register.asp - In the Q&A segment of this Options Strangles educational webinar, the Admiral answers a question about weekly options and their extreme dynamics due to the closeness to expiration. The Admiral, a former CBOE Designated Primary Market Maker, explains the potentials, dangers, and considerations for trading weekly options.
This a Q&A excerpt from "Trade Options like a DPM Webinar #6: Strangles" - http://hamzeianalytics.com/pow_register.asp
"STRANGLES" OPTIONS WEBINAR DESCRIPTION (October 20, 2010, 1800 CT)
An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Wednesday, October 27, 2010
Market Thrust Indicator: Applying Advance Decline Market Data | Rich Ruscio's Market Internals Webinar
http://hamzeianalytics.com/educational_webinars.asp - Futures trader Rich Ruscio combines advance/decline issues and volume data for use in the Market Thrust indicator to help time his trades and give him a sense of market behavior.
About Rich (@rruscio on twitter)
Rich Ruscio is a retired-from-the-W2-world trader, trading $ES_F and selected 2x ETF’s.
While at work for others for most of the past 4 decades, Rich has held positions from the factory floor, thru software engineering, various management jobs, and Corporate staff roles.
Since leaving the working world in August 2009, Rich as spent a lot of his time on learning how TradeStation works, leaving TOS behind, walking his dogs and riding his bikes. A self described code monkey, Rich builds, and uses, a number of partially automated systems he delicately describes as ‘robots’.
Rich lives in Upstate NY, with his wife, mother-in-law, the occasional one of his three daughters, two dogs, bikes, computers, and Droid Inc. He holds a BS in Chemical Engineering, and a MS In Statistics.
Rich is active member of HamzeiAnalytics’ High Frequency Trading Chatroom. In this webinar, Rich will describe the market internals he uses (data, algos, methodology).
Tuesday, October 26, 2010
Using Advancing & Declining Issues Data as a Market Indicator | Rich Ruscio Market Internals Webinar
http://hamzeianalytics.com/educational_webinars.asp - Futures trader Rich Ruscio explains using the advancing and declining issues data as a day trading indicator.
About Rich (@rruscio on twitter)
Rich Ruscio is a retired-from-the-W2-world trader, trading $ES_F and selected 2x ETF’s.
While at work for others for most of the past 4 decades, Rich has held positions from the factory floor, thru software engineering, various management jobs, and Corporate staff roles.
Since leaving the working world in August 2009, Rich as spent a lot of his time on learning how TradeStation works, leaving TOS behind, walking his dogs and riding his bikes. A self described code monkey, Rich builds, and uses, a number of partially automated systems he delicately describes as ‘robots’.
Rich lives in Upstate NY, with his wife, mother-in-law, the occasional one of his three daughters, two dogs, bikes, computers, and Droid Inc. He holds a BS in Chemical Engineering, and a MS In Statistics.
Rich is active member of HamzeiAnalytics’ High Frequency Trading Chatroom. In this webinar, Rich will describe the market internals he uses (data, algos, methodology).
Sunday, October 24, 2010
Using Tick Charts as a Day Trading Market Indicator | Rich Ruscio Market Internals Webinar
http://hamzeianalytics.com/educational_webinars.asp - Futures trader Rich Ruscio shares his insights and experiences with using the market Tick data when day trading. Rich shows several different ways of using Tick data including the slow average, fast average, range days, and trend days.
About Rich (@rruscio on twitter)
Rich Ruscio is a retired-from-the-W2-world trader, trading $ES_F and selected 2x ETF’s.
While at work for others for most of the past 4 decades, Rich has held positions from the factory floor, thru software engineering, various management jobs, and Corporate staff roles.
Since leaving the working world in August 2009, Rich as spent a lot of his time on learning how TradeStation works, leaving TOS behind, walking his dogs and riding his bikes. A self described code monkey, Rich builds, and uses, a number of partially automated systems he delicately describes as ‘robots’.
Rich lives in Upstate NY, with his wife, mother-in-law, the occasional one of his three daughters, two dogs, bikes, computers, and Droid Inc. He holds a BS in Chemical Engineering, and a MS In Statistics.
Rich is active member of HamzeiAnalytics’ High Frequency Trading Chatroom. In this webinar, Rich will describe the market internals he uses (data, algos, methodology).
Thursday, October 14, 2010
Straddle Strategy for High Volatility Events (Earnings, Takeovers) | Options Like a DPM Webinars #5
http://hamzeianalytics.com/pow_register.asp - The Admiral, a former CBOE Designated Primary Market Maker (DPM), explains how straddles could be used to take advantage high volatility events like earnings and takeover plays. The Admiral suggests ways to use straddles both before the event, to capture the volatility, and after the event, to fade volatility.
This a Q&A excerpt from "Trade Options like a DPM Webinar #5: Straddles" - http://hamzeianalytics.com/pow_register.asp
"STRADDLES" OPTIONS WEBINAR DESCRIPTION (October 6, 2010, 1800 CT)
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Tuesday, October 12, 2010
Straddles Trade Adjustment | Trade Options Like a DPM Webinars #5: Straddles
http://hamzeianalytics.com/pow_register.asp - The Admiral, a former CBOE Designated Primary Market Maker (DPM), answers in this webinar Q&A what to look for when considering a trade adjustment of a options straddle. When a trade has gone against you, action must be taken, and the Admiral explains what are the important factors in making that straddle adjustment decision.
This a Q&A excerpt from "Trade Options like a DPM Webinar #5: Straddles" - http://hamzeianalytics.com/pow_register.asp
"STRADDLES" OPTIONS WEBINAR DESCRIPTION (October 6, 2010, 1800 CT)
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Sunday, October 10, 2010
How Analyst Recommendations May Affect Options Open Interest | Options like a DPM #5: Straddles
http://hamzeianalytics.com/pow_register.asp - While answering a question about Ford (F)'s options high level of open interest, The Admiral, A former CBOE Designated Primary Market Maker (DPM), also explains how high open interests could be a phenomenon of analyst recommendations to retain traders such as through Charles Schwab. The Admiral says he has experienced times where the same types of orders flowed continuously when such analysts recommendations were made and, as a DPM, he could use options equalities to take the other side of the trade.
This a Q&A excerpt from "Trade Options like a DPM Webinar #5: Straddles" - http://hamzeianalytics.com/pow_register.asp
"STRADDLES" OPTIONS WEBINAR DESCRIPTION (October 6, 2010, 1800 CT)
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Thursday, September 30, 2010
High Frequency Trading in Options Explained | Trade Options Like a DPM Webinars #4
As former CBOE Designated Primary Market Maker (DPM), The Admiral, explains what High Frequency Trading (HFT) is. Specifically, the admiral explains what the purpose of high frequency trading and how big firms like Goldman Sachs, JP Morgan, and Morgan Stanley take advantage of technology placed near the exchanges
This an excerpt from the "Trade Options like a DPM Webinar #4: Synthetics & Equalities -http://hamzeianalytics.com/pow_register.asp
"SYNTHETICS / EQUALITIES" OPTIONS WEBINAR DESCRIPTION
A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Friday, September 24, 2010
Revealing HamzeiAnalytics Chat & Trader Social Networking Platform on MarketHEIST Interview
During my interview on http://marketHEIST.com with Jeffrey Lin discussing crossing 20,000 twitter followers, I disclosed some details for the first time about our HA chat platform. The HA chat platform will integrate various social networks including twitter, facebook, myspace, etc and be accessible on mobile platforms too.
Thursday, September 23, 2010
20,000 Twitter Followers marketHEIST Interview Pt.2
Second part of my interview with marketHEIST's Jeffrey Lin, talking more about my experience with using twitter as a trader.
Part 1 of our interview
Wednesday, September 22, 2010
Interview on marketHEIST.com for passing 20,000 Twitter Followers
Interview via Skype with Jeffrey Lin from marketHEIST.com discussing the journey on twitter since signing up in April 2009
Part 1: Passing 20,000 Twitter Followers
Monday, September 20, 2010
Options Time Spread, Jelly Rolls, and Reversals with Goldman Sachs (GS) | Trade Options Like a DPM Webinars #3
http://twitter.com/hamzeianalytics - The Admiral, a former CBOE Designated Primary Market Maker (DPM), continues his lesson on calendar spreads by demonstrating an advanced use of structuring time spreads as jelly rolls. He extends the example a bit further, taking advantage of risk reversal strategies mentioned in a previous lessons to construct options positions with essentially no-risk (or riskless money).
This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars/Time Spreads: http://hamzeianalytics.com/pow_register.asp
"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION
An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Options Time Spread VMW Example | Trade Options Like a DPM Webinars #3: Calendar Spreads
The Admiral, a former CBOE Designated Primary Market Maker (DPM), continues his first example of implementing an options time spread using VM Ware (VMW) as the sample underlying stock. The Admiral goes through each step of identifying the trade and the potential targets for the underlying stock, finding the option months and strikes, constructing the time spread, and analyzing the time spread.
This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars & Time Spreads: http://hamzeianalytics.com/pow_register.asp
"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION
An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Options Time Spreads Basics Excerpt | Trade Options Like a DPM Webinars #3: Calendar Spreads
The options calendar spread, or time spread, was the first options spread The Admiral, used when he first became a market maker on the floor of the CBOE. In this excerpt from the "Calendars" Options Webinar presentation, The Admiral explains the basics of a calendar spread, how to price a calendar spread, and the relatively low-cost and low exposure to deltas.
This an excerpt from the "Trade Options like a DPM Webinar #3 - Calendars & Time Spreads: http://hamzeianalytics.com/pow_register.asp
"CALENDARS & TIME SPREADS" OPTIONS WEBINAR DESCRIPTION
An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Monday, August 30, 2010
Dollar-Weighted Put Call Ratios Explained (8/1/10 Market Timing Webinar excerpt)
Our Real Time Put Call Ratio screens show actual volume of calls & puts, dynamically updated throughout the day. Sorted by each column, both simple & dollar weighted ratios are displayed.
As a trader, speculator or investor, it is important to have access to all of the tools that the professionals have. The Real Time Put Call Ratio is one of those tools, providing valuable insight into overall market sentiment. Now, Hamzei Analytics' Real Time Put Call Ratio gives you a leg up on the market, letting you see where the action is before the news leaks it out.
Learn more about the Hamzei Analytics Real-time Put/Call Ratios here: https://www.hamzeianalytics.com/tutorial_real_time_put_call_ratio.asp
There are many schools of thought on what exactly is a bullish ratio and what is a bearish ratio. Generally, the simple put call ratio of 1.5 on an index is used as the level of relative neutrality. Anything higher than that is considered bullish and anything lower is considered bearish. The dollar-weighted ratios vary from index to index and each index historical norms need to be referenced for proper deduction.
Thursday, August 19, 2010
Creating Arbitrage with Stocks Options Equality | Trade Options Like a DPM Webinars #2
http://twitter.com/hamzeianalytics - The Admiral, a former CBOE Designated Primary Market Maker, does a quick example with Costco (COST) on how to create arbitrage opportunities and make instant profits through stock-option equalities. The Admiral has stressed the importance of these stock-option equalities (also called put-call parity, synthetic stock) and this is why. Techniques like this are harder to make a lot of money today with computers quickly taking advantage of these arbitrage opportunities, but this is still important fundamental mechanics of the market to understand.
This an excerpt from the "Trade Options like a DPM Webinar #2 - Verticals/Boxes" Q&A session: http://hamzeianalytics.com/pow_register.asp
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
How Options Market Makers Use Box Spreads | Trade Options Like a DPM Webinars #2
http://twitter.com/hamzeianalytics - The Admiral, as a former CBOE Designated Primary Market Maker, often used Option Box Spreads to lock in his profits with other options when he was unable to close out his positions directly. Also, he used Option Box Spreads to flatten his position because it was tough for him to close the amount of positions he had at the end of every trading session.
This an excerpt from the "Trade Options like a DPM Webinar #2 - Verticals/Boxes" Q&A session: http://hamzeianalytics.com/pow_register.asp
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
What are Options Box Spreads Q&A | Trade Options Like a DPM Webinars #2
http://twitter.com/hamzeianalytics - In this 2nd webinar, The Admiral, a former CBOE Designated Primary Market Maker, teaches Vertical Option Spreads and a vertical option spread combination called Option Box Spreads. In this Q&A excerpt after the lesson, the Admiral does some examples and clarifies what Option Box Spreads are and how they're used.
This an excerpt from the "Trade Options like a DPM Webinar #2 - Verticals/Boxes" Q&A session: http://hamzeianalytics.com/pow_register.asp
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Thursday, August 5, 2010
How Mark Cuban Locked in His Enormous Yahoo Fortune: Options Risk Reversals | Trade Options Like a DPM Webinars with the Admiral #1
The Admiral, a former CBOE Designated Primary Market Maker, tells the story of how Mark Cuban locked in his enormous fortune after selling Broadcast.com to Yahoo. While Mark Cuban was restricted from selling the Yahoo (YHOO) stock he got, he was able to keep the profits on Yahoo stock using risk reversal option strategies while Yahoo stock itself plummeted when the tech bubble burst.
This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp
The Win-Win Scenario for Buy-Write Option Strategies | Trade Options Like a DPM Webinars with the Admiral #1
The Admiral, a former CBOE Designated Primary Market Maker, illustrates the ideal scenario and market conditions for a buy-write options strategy with the Goldman Sachs (GS) example used throughout this webinar.
This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp
How to tell when a Call or Put Option Will be Assigned | Trade Options Like a DPM Webinars with the Admiral #1
The Admiral explains the two main conditions when someone holding a call option or put option may be assigned the stock. He answers when and why will someone exercise an option. The Admiral is a former CBOE Designated Primary Market Maker (DPM).
This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp
Key Trading Psychology: Admitting When You're Wrong & Taking Losses | Trade Options Like a DPM Webinars with the Admiral #1
The Admiral, a former CBOE Designated Primary Market Maker, explains the importance of humility in trading, the ability to take a loss, and reset with a clear head and start over.
This an excerpt from the "Trade Options like a DPM Webinar #1 - Covered/Buy Writes" Q&A session: http://hamzeianalytics.com/pow_register.asp
Saturday, July 31, 2010
Option Equality Synethics | Trade Options Like a DPM Webinars with The Admiral
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.
Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...
In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Option Greeks Intro: Delta | Trade Options Like a DPM Webinars with The Admiral
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.
Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...
In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Options Pricing & Volatility | Trade Options Like a DPM Webinars with The Admiral
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.
Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...
In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Trade Options Like a DPM Webinars with The Admiral: Intro & What's a Designated Primary Market Maker
http://twitter.com/hamzeianalytics - Who better to learn options trading from than one of the biggest and best traders to have ever traded on the CBOE floor? The Admiral is a 27-yr veteran of CBOE as with 5 years as a major DPM with a $800 Mil trading book. DPM stands for Designated Primary Market Maker.
Register for this webinar series: http://www.hamzeianalytics.com/POW_Re...
In this webinar series, The Admiral will start off by going over the basics. During this first webinar, The Admiral touched on topics such as the volatility component of options, options an stock equalities, and synthetics.
ABOUT "THE ADMIRAL"
The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.
That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.
Sunday, July 25, 2010
Market Timing Charts Review
We are on track to get to 1113 on SPX (200 bar MA and +2 sigma confluence). NYSE MO at +244 is too high,
we are slightly overbought, a small pullback is in order.
Notice DJ Trans strong up thrust [and channel breakout] was followed by RUT channel breakout.
This is all good for the bulls.
Notice the direction of our CI Indicators on VXO and VXN. Our target for VXO is 17 (neg 3 sigma).
Our coveted SP1_MoMo Indicator shows SPX Advancing vs Declining Issues are thrusting upward. MoMo is nearly magic 10 number. We should expect a pull back first before resuming upward further.
Percent of SPX Components over their respective 200-Day MAs is now over 55% now and it is over its 50bar. This is all good for the long side. Like to see this number over 70%-75%.
SPX 2010 is way behind its 2007 Analog but indicators are relatively strongervs their analogs.
Notice the low put/call readings. This is good for the bulls.
Wednesday, July 7, 2010
Poll: HA Options Webinar Series Featuring The Admiral
Help us create this options educational webinar so it will help you the most. Please fill out the poll below.
Tuesday, July 6, 2010
Trade #Options Like a DPM Webinars
Tuesday, June 1, 2010
Updated SPX Analog 2010 vs 2007 Chart
Saturday, May 22, 2010
Trading TF Webinar
The incredible TF Trading Webinar with our SuperWoman @JT707 is now available for your review http://bit.ly/7Fnxe
We will add her Slides shortly
Do not miss her section on "War Chest" -- it is a key to your trading success
Wednesday, May 5, 2010
Sunday, February 28, 2010
Market Timing Charts Revisited as of Friday Close, February 26th, 2010
Fari Hamzei
With the last week of trading for February behind us, the technical picture has not changed much since my last Market Timing Webinar last Sunday.
Next Friday, the Feb NFP will be published by BLS and should provide us some fireworks. I expect a number around -50K for Feb NFP. Until then, market should trade in a tight range for the next four days with a slight up bias (look at the CIs below in the Timer Chart and candlestick hammer put in on SPX on last Thursday, with low of its wick touching zero sigma).
Vols Chart chart confirms that (failure for VXO, VXN to get over their respective zero sigmas -- the yellow line).
And, last but not least, our coveted SP1 Indicator is in the +1 to +2 sigma channel (ideal up bias zone) for now.
Sunday, February 7, 2010
Market Timing Charts Revisited -- as of Friday Close, February 5th, 2010
Fari Hamzei
I had one of the greatest trading weeks in a while. IMHO, more than once, I got very lucky. These charts & comments were posted earlier today on our Open Twitter Feed ( http://twitter.com/hamzeianalytics ).
Let's start with our Timer Chart.
Above is Vol of the Vols Chart with an intraday spike of VXO to +3sigma and VXN to +2sigma. It was nothing out of ordinary, when we take into account the intraday volatility and range of the preceding few sessions and then Friday being Jan NFP (historically a high risk/high reward trading day).
Our coveted SP1_MoMo Chart: when we look carefully, we see a weak bullish divergence here between MoMo vs SP1, further vouching for a small dead cat bounce here.
% of SPX Components above their respective 200 Day MAs in the chart above is sinking fast. IMHO, for now, the PATH OF LEAST RESISTANCE is **DOWN**.
See you all in the morning - bright and early -- Go Saints Go !!
Sunday, January 31, 2010
Market Timing Charts Revisited -- as of Friday Close, January 29th, 2010
Fari Hamzei
Here is our Timer Chart with NYSE McClellan Oscillator closing the week at -286, 7thday in the row below the negative 150 oversold threshold. We keep on reminding ourselves that a short/term bounce, albeit a dead cat bounce, should be near. Notice NASDAQ Volume MO is also pretty nasty -- many names being punished despite of good [/quality] earnings. Yet we have not seen a volume spike. Even with a dead cat bounce, the selling should resume till we see capitulation. Next stop for SPX should be its 200-bar moving average (which is a fast moving target here). IOHO, maybe around 1020. SELL THE RALLIES.
As far as vols are concerned, the ROC of Vols have slowed down but now lining up into a clean and rising +1 to +2 channel upward channels.
The % of SPX components over their respective 200 bar MovAvg chart needs no explanation. KIDs are running for the hills. Hearing IPO windows tightening up, private equity and VCs boyz are getting a bit nervous. It is still early.
Our coveted SP1 MoMo Indicators getting a real Royal Flush. Long Term [Modified] Breadth (SP1) looks worse than it did at October lows, while Short Term [Modified] Breadth (MoMo) does not. This tells us a strong push down, after a dead cat bounce (should we be lucky to witness it), is a must somewhere here. Next big news day, is this coming Friday Feb 5th (Jan Non-Farm Payroll at 0730 CT), could well turn out to be the Mother of All NFPs. Small accounts should step aside and stay on sidelines.
Bottom Line: Washington Policy Makers are dueling it out on weekend news programs. We were very happy to see Dr. Ben Bernanke finally was confirmed to serve another term at The Temple. (This is a great read http://bit.ly/ErrJ0 ).
Both intraday and long term Vols are rising and we are seeing some trending days. This is day traders paradise. We are in heavens. Brokers and Sausage Makers are not so lucky.
Monday, January 25, 2010
Tactical Market Timing as of Close of Friday, January 22, 2010
Fari Hamzei
We went thru a tumultuous week of corporate earnings, political, financial and geopolitical surprises, some with dire unintended consequences.
Those of you who attended my last market timing webinar held on Monday January 18th(http://hamzeianalytics.com/Educational_Webinars.asp), should remember my dire warnings. Our charts had a series of bearish divergence setups. Brad Sullivan's comments were also spot on. Now let's go thru our proprietary charts:
Our Timer Chart shows a shallow rise, and not a hard spike, in Down to Up Volume Ratio. This is a mood change IMHO. SPX was at MR1 Level (Monthly Resistance One) on Friday OX (Jan 15). Last three trading sessions, nastiest since prior March 9th lows, while producing a slightly higher volumes, pushed SPX down to MS1 Level (Monthly Support One). Our CI Indicator turned south sharply. No index was spared.
Percent of SPX components above their 200 day Mov Avg reversed hard, breaking their 20 and 50 MAs. Notice the divergence with price around the 95% Level. This is NOT good.
Our coveted SP1 Indicator broke its rising trendline as SPX went thru its -2 sigma band and its MoMo brethren reached a short-term oversold condition.
Bottom-Line: We should be nearing a short-term oversold condition culminating in a dead-cat bounce. Tape feels HEAVY. What is next could be very nasty for our fragile jobless recovery. Not sure PPT can do anything about this one.
Sunday, January 24, 2010
SIGNIFICANT INFLECTION POINT MAY BE AT HAND
Jeffrey Spotts, CMT
In our view, several markets, sectors, leadership groups and commodities are at an important turning point. Although we have been a bit early in this analysis, there are many opportunities for positioning in excellent risk/reward setups. Our view is that at least a weekly 4th wave pullback is in the making, allowing for a good long entry later this year. However, this condition may not present itself for several weeks, even months.
European markets have daily and weekly sell signals, perfectly set into TD PROP MOMENTUM levels:
UKX (FTSE Index) weekly repelled from weekly risk and TDST levels, with price flip (new “1” count down)
DAX index into weekly sequential 13 count with new “1” count (price flip)
CAC index into same weekly risk level and new count down
Asia weaker. The HSI and SHCOMP have broken down, with confirmed tops. Please note that Chinese markets have not made a higher high since November, unlike their European counterparts. Interestin article in Bloomberg whereby Chanos is being mocked for his newly positioned shorts in Chinese markets. Perhaps this is anectodal, complacent sentiment.
HIS weekly with 13 sell signal and close below previous 13 weeks of trading.
SHCOMP with weekly 13 sell signal, lower high, and price flip
Many leadership stocks in major markets have sell signals, adding to the quality of the market calls.
Apple Computer (AAPL) has rare monthly 13 sequential AND combo sell readings
Financial stocks seem to be making a parallel with the history of the Technology sector. Technology went through its bubble in 2000, after which the sector had a decent rally, and subsequent, long-term sell off, until bottoming this past low. Financials look to be finished with its rally, and is not poised to make further lows. Our focus is on the credit card sector, where politics, limits and regulation are coming.
American Express (AXP) weekly 13 combo sell and price flip
Commodity-related equities have undoubtably been the leadership in global equities over the past year. This group is highly correlllated to emerging markets. There seems to be room for significant pullbacks in these areas.
The Dow Jones US Basic Materials index (DJUSBM) with daily sell signals at high.
As stated, our view is that many markets are poised for a significant pullback, with at least a several week duration. Sentiment surely supports this with recent AAII and other investor polls.
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