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There was some gossip from floor traders today to the effect that yesterday’s rally had as much to do with short-covering as anything else. Volume was quite low this morning, but it picked right up during the afternoon selloff. Crude only fell 41 cents today, so that particular rally excuse wasn’t available. Financials reaffirmed their doghouse status (XLF and BKX were both down over 5%). So in all likelihood the story is that if yesterday was about short-covering, today was about short-reloading. Markets gave up yesterday’s gains, and without some kind of game-changing positive news event, it’s hard to see where a sustained rally will come from. GE reports on Friday and many traders will be watching them.
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9 July, 2008| Derivatives | Comments (0) @ 19:48

Restrictions on Foreign Investment Could Ding Russia’s ETF

Russia and the economy, along with the related exchange traded fund (ETF) have been on a healthy run of success, naturally.
As one of the largest land masses on the planet, the share of natural resources is more than abundant, and this quarter brought on an 8.5% expansion, r…
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9 July, 2008| Derivatives | Comments (0) @ 15:00

Option Trading Tip - Beware of One-Day Rallies!

Yesterday, the market staged a nice intraday reversal as oil prices sank. This morning, oil inventories showed a much bigger than expected draw and energy prices are lower after the release. This is contrary to what most traders would expect and it shows that for the time being, oil has hit a resistance level. The bounce came from a level that was significantly below the double bottom formed in March this year. I do not believe it was a capitulation low. As I mentioned in yesterday, I have been seeing two-sided market action. That tells me that we are near a …
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9 July, 2008| Derivatives | Comments (0) @ 14:20

Option Trading Tip - Beware of One-Day Rallies!

9 July, 2008| Derivatives | Comments (0) @ 14:20

U.S. Real Estate ETFs Left Standing

Who’s left standing in the real estate exchange traded fund (ETF) category?
The real estate sector has been bearing the brunt of the credit crisis and rising interest rates, but it can still be a hedge against inflation, r…
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9 July, 2008| Derivatives | Comments (0) @ 14:00

Closing Bell: I Will Buy You a New Life

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Original Source: www.optionaddict.net

9 July, 2008| Derivatives | Comments (0) @ 13:09

Potash’s Positive Fundamentals Fertilize Agribusiness ETF

It’s been a nice day for both potash producers and agricultural exchange traded funds (ETFs).
A Goldman Sachs analyst said prices for the fertilizer are rising as a result of global demand and limited availability, since few countries produce it, r…
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9 July, 2008| Derivatives | Comments (0) @ 13:00

So Much for Yesterday’s Bottom

Pretty well known that all things financial have seen a volatility explosion the past month. Including the financial indices themselves. But what about the other end of the performance curve?Buzzed thru all sorts of volatility charts today with an emphasis on deflated momo names. And sure enough, got some real spikes. I’ll post a few tomorrow….
Original Source: adamsoptions.blogspot.com

9 July, 2008| Derivatives | Comments (0) @ 12:49

Gold, Silver, Platinum, Palladium ETFs - Oh, My!

Platinum and palladium exchange traded funds (ETFs) are reflecting the love investors have for metals that do much more than look pretty.
Platinum demand is being driven, literally, by its primary use as a catalyst in devices that remove automotive pollutants, s…
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9 July, 2008| Derivatives | Comments (0) @ 12:00

The Frontier Becomes More Vast With PowerShares’ ETF

Invesco PowerShares announced the listing of its frontier countries exchange traded fund (ETF). The PowerShares MENA Frontier Countries Portfolio (PMNA) began trading this morning.
The fund was designed to give access to the Middle East and North Africa. Its heaviest weighting is in Kuwait, with 19.7% of assets, followed by United Arab Emirates (19%), Egypt (16.1%), Qatar (14.5%) and Morocco (12.2%).
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9 July, 2008| Derivatives | Comments (0) @ 11:00

Motorin’

It’s all GM these days.Volatility a cool 115 in the Aug. near money’s. Ted Koppel talking about China’s auto industry all week on Discovery channel (they’ll have as many cars as we do in a decade).And lots of Blogger talk that it’s time to declare for bankrupcy, via b…
Original Source: adamsoptions.blogspot.com

9 July, 2008| Derivatives | Comments (0) @ 10:39

Existing Shorts and Exit Plans

Too bad I didn’t choose to sell half of my positions in ICE and LVS rather than sell them altogether. Much like I did with CMG. I am still holding puts in WYNN and will roll into some August contracts when the stock closes below $78.For the folks that wanted to know what positions I am still holding, and didn’t feel like scrolling down to find out, here is the rest of my put positions……
Original Source: www.optionaddict.net

9 July, 2008| Derivatives | Comments (0) @ 10:36

Not the Bounce I Had in Mind…

Thus far it is a very interesting tape today. The moves we are seeing in agriculture, coal, steel, and other commodity related stocks is reminiscent of the moves we have grown accustomed to over the last year. Take a quick look at the $CRX (Commodity Related Equity Index).The CRX Finds Support…
Original Source: www.optionaddict.net

9 July, 2008| Derivatives | Comments (0) @ 8:26

An ETF Trend-Following Plan For All Seasons

It’s hard to believe that the S&P 500 Index has been flatter than a pancake for the past nine years. It’s had its ups and downs, but when you connect the dots, it went virtually nowhere.
It’s even harder for index investors who relied on this large-cap benchmark to grow their retirement savings. To think, a portfolio with $100,000 allocated to the S&P 500 hardly budged at all. That’s a lot of wasted time and missed opportunity.
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9 July, 2008| Derivatives | Comments (0) @ 8:00

Mustaches At Night

Getting a bit VIXed out here. But fortunately, it’s that time of year again. Time for the Daily Options Report to officially endorse some w…
Original Source: adamsoptions.blogspot.com

9 July, 2008| Derivatives | Comments (0) @ 7:37

Calendar Options Update: IYR July/August Calendar Spread

Yesterday we were blindsided by an explosive end-of-day rally in IYR. The gain for the day was a whopping $4.21–that’s more than 3½ times IYR’s one-day standard deviation (which means the statistical probability of such a huge one-day move is less than 0.02%). Short-covering probably was a big factor in the move…but regardless of the whys and wherefores, the market erased a week and a half’s losses in a matter of hours.
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9 July, 2008| Derivatives | Comments (0) @ 7:18

The Impact of Financials and Energy Stocks on the VIX

The rapidly changing fortunes of financial institutions and energy stocks have been widely chronicled – so much so that there is no need to repeat the details here. The implications of the shift away from financials and toward energy touch upon several issues that I have not yet seen addressed on the media. One of the obvious ones is the composition of various stock indices. In the S&P 500 index (SPX), for instance, just from 2007 to the present, financials have dropped from 22% of the index to 14% of the index, while energy stocks have surged from 10% to 16% of the index. …
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9 July, 2008| Derivatives | Comments (0) @ 6:58

Focus Media (NASDAQ:FMCN): Goldman defends the stock following yesterday’s sell-off

Goldman Sachs notes Focus’ (NASDAQ:FMCN) stock traded down ~5% intra-day yesterday, which they attribute to concern that Focus’ outdoor advertising business in Beijing is subject to a rule that only Olympics sponsors can advertise on the medium during August and September.Speaking with management overnight, the company confirmed that its commercial network, poster frame, in-store, and online businesses are not subject to this rule, which only applies to a few of the TV screens in its Beijing travel and hotel network. The travel and hotel network is immaterial to revenue or earnings. The rest of the business sounds on track, and has enjoyed a full rebound from the post-earthquake deceleration. Focus will report its 2Q2008 results in the second week of August; GSCO expects the results to be supportive for its stock in terms of both earnings and cash flows….
Original Source: notablecalls.blogspot.com

9 July, 2008| Derivatives | Comments (0) @ 6:21

Do-It-Yourself Diversification With ETFs

For any exchange traded fund (ETF) investor, diversification is key. One of the sole reasons people choose to use these funds is to get the instant diversification with one investment, while keeping risk and volatility to a minimum, rather than just buying one stock and hoping.
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