EOD - Thursday, December 4th, 2014 Draghi Overshadows SC Rally, Markets Brace For Jobs Report Friday So there we were, minding our own business, waiting for confirmation that the Santa Claus Rally had Officially begun... when what to our Wondering eyes should appear, but Draghi The Grinch and his Economic Rhetoric of Fear! It was Immediate and Swift - much like some Distorted form of Justice meted out by the Machinations of a Man Masquerading as a Global Leader. Tough words, I know. But when youre words can move Markets and, by Extension, Change Lives, Diplomacy and Discretion are the vehicles with which your Words must be spoken. But alas - the bell cannot be Un-Rung. And so, the Markets went through their Fits and Starts. First Falling almost 10 S&P Points and then recovering all of that and moving approximately 5 Points Higher until finally settling Lower on the Day. None of it necessary, but we Graciously Receive - and Trade - what we are Offered in these Financial Markets. Heres how the Indexes Fared: Dow - Down -12.52 Points to 17,900.10 S&P - Down -2.41 Points to 2071.92 NASDAQ - Down -5.03 Points to 4769.43 Russell 2000 - Down -6.00 Points to 1773.00 Gold and Oil Traded Lower. Bonds Traded Higher. Binary Events come in all shapes and sizes. Known and Unknown - and in varying degrees of severity. The one guarantee is: As Traders, we will Have to Trade with, and through, Binary Events. For Obvious reasons, Trading Known Binary Events provides Opportunities if you understand how to Exploit them. Even then, there is no guarantee you can effectively Profit from them. And, of course, Unknown Binary Events are Disrupting, oft times Confusing and almost always Frustrating. But, its the Known Binary Events, that surprisingly reveal Unknown or Radically different information than Expected, that wreak the most Havoc. Ergo, Draghis Speech. And tomorrows Jobs Report is another Known Binary Event that may reveal more, or radically different information than what is thought. But well be ready for whatever comes our way. In the Trading Room: We managed our Earnings Trades first thing and ended up Losing approximately $90 overall on those. It happens. And if you decide to become a Trader, youd better get used to it. Weve been developing and tightening up a Trading Methodology in the Trading Room that makes use of Volatility and Premium Selling. Theses are two separate and Stand-Alone Trading Styles and Methodologies unto themselves, however weve combined them to provide an Advanced, and very Powerful Strategy. It is Impossible to go into it here, but suffice it to say, it has been working quite well and the Engineer of this Ideology has made some great Breakthroughs and Headway into establishing this as a Foundational and Bedrock Strategy for Portfolios that qualify for Portfolio Margin. Hes a Brilliant Trader (although hed never admit to it) and we are very Fortunate to have him as a Member of the Synergy Options Trading Room. Other Trades: Ive been Experimenting with Futures Pairs Trades and placed a Euro/Dollar Pairs Trade that serves to take advantage of the Correlation and Trading Differential between the two. We took two Earnings Trades today for tomorrow morning. ULTA and FIVE. ULTA is doing well in the After Hours. FIVE is under pressure and we may need to make an adjustment on that one in the AM. Well just need to wait and see what the morning brings. As far as what the morning brings, the Jobs Report comes out One Hour before the U.s. Cash Market Opens, so there will be a Lot of Futures Movement and Positioning before the Bell. Well have plenty of time, but will need to see how the Jobs Report affects our Trades. Same stuff, Different Day - and we Love It! Until tomorrow.... Good Night and Good Trading!
Posted on: Thu, 04 Dec 2014 23:56:17 +0000