GST Issue #214
Dear Member,
All markets are whipping around, jittery as can be, but within tight trading ranges.
The good news: We should soon see some trending moves unfold, in nearly all markets. Plus, the grain markets remain weak at the knees, good for the DBA put options.
The bad news: China’s market, while rolling over to the downside in a correction, has not – yet – fallen as much as I expected. This has hurt the FXI put options, and with expiration coming up this Friday, it’s time to salvage some premium. Details in a moment.
Looking at the key markets right now, the dollar, gold, and the U.S. equity markets – I strongly believe – based on my models – that we are on the right track, with a lower stock market coming, right along with a decline in gold. So for these positions, hold all, with your stops in place.
Meanwhile, interest rates have also gone against us, but I see that as short-term. If the stock markets rollover soon – as I expect they will – rates will fall sharply, and treasury prices rally, due to a flight to safety. That will benefit the position in TYD. Hold with your stop in place.
To exit your FXI put options, here are the details:
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For all subscribers who own the May 2015 FXI Sell ALL of my May 2015 FXI put options with a strike price of $49, symbol FXI150515P00049000 at a price of $0.35 or better, to close. |
Lastly, I want to repeat what I said in a recent issue: According to my timing models, there are two months this year that stand out as being the wildest for market action, in nearly all markets: June and October.
We are rapidly approaching the month of June so be sure to be ready to trade the dickens out of these markets, and for some really awesome profit potential.
Best wishes, and stay tuned …
Larry
