The results of our online survey are in and the most requested topic was gold. Gold is a very interesting commodity to study. It has a long history. A wide variety of investors and speculators have counted on its large changes in prices and very little utility value. This topic deserves a lot of attention.
Continue reading “You Asked For It – Gold”
Ready For the Monthly US Employment Report – February 2014?
The US Non-Farm Payroll report is a popular day for professional traders. The day usually brings a sharp move the moment the report is released on the first Friday of the month at 8:30 AM (EST). Traders usually like to take advantage of the sharp move and close out a position seconds, minutes, or hours later. However, if you hold on for too long, you might be disappointed, as the moves may come back to earth. Be prepared with some statistics for the ETFs that track the S&P 500 (SPY), Gold, (GLD), and US Ten Year Treasury Rates (IEF). The numbers below represent, in absolute value, the size of the moves of the given category. For example, the overnight move (Day Before Close to Open on NFP) for SPY (S&P500) is on average $1.78 up or down. So if you are making a directional trade or a volatility play, understand the size of the move you can expect.
| Ticker | Spot Price | Open to Close on NFP Day | Day Before Close to Open on NFP Day | Day Before Close to Close on NFP Day | Typical 1 Standard Deviation 1 Day |
| SPY | $177.04 | $1.30 | $1.78 | $1.35 | $2.15 |
| GLD | $121.20 | $0.80 | $1.60 | $1.25 | $1.59 |
| IEF | $101.75 | $0.24 | $0.35 | $0.26 | $0.46 |
Don’t let trades outlive their usefulness.
Good luck and trade rationally.
Market Comments – January 27, 2014
Hope you are ready for some action. Last week’s price action was pretty weak for equities. There were concerns over emerging markets such as Argentina and Turkey. Some stories of signs of a slowdown in the Chinese economy. Earnings have not been particularly stellar save for a few exceptions. The continued expectation of the US Fed tapering their bond purchasing program. All of these factors were reported in regards to the sell off. The post sell off reaction along with a flurry of news and reports should lead to a busy week for trading. Highlights will include:
Monday – Apple Earnings, New Home Sales. Tuesday – Durable Goods Orders, Ford Earnings. Wednesday – FOMC Announcement, Boeing Earnings. Thursday GDP, Amazon and Google Earnings. Friday – Mastercard Earnings, Personal Income.