wackypete2
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1423 
VielGeld
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Aye it can. It's how I lost my shirt last year!
Imo, options are not made for day-trading. They are a longer tf instrument (we're talking like a month+ trade length minimum). That's when time value can at least play in your favour.
Not saying they can't work with a day-trading style, but you'd be limited to the most liquid of avenues such as SPY. The spread is otherwise prohibitive. Retail commissions will also eat you up as they are an exorbitant rip-off.
Where they shine is in risk management. Pay/sell the premium, and your loss is very defined and limited after that. The advantage of this is that you can look for trades that intrinsically offer limited loss/unlimited profit by design. Very handy, that, but you have to know what you're doing.
But I digress... wouldn't want to clog up this thread.
Pat494
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Aye it can. It's how I lost my shirt last year!
Imo, options are not made for day-trading. They are a longer tf instrument (we're talking like a month+ trade length minimum). That's when time value can at least play in your favour.
Not saying they can't work with a day-trading style, but you'd be limited to the most liquid of avenues such as SPY. The spread is otherwise prohibitive. Retail commissions will also eat you up as they are an exorbitant rip-off.
Where they shine is in risk management. Pay/sell the premium, and your loss is very defined and limited after that. The advantage of this is that you can look for trades that intrinsically offer limited loss/unlimited profit by design. Very handy, that, but you have to know what you're doing.
But I digress... wouldn't want to clog up this thread.
Thanks for the insight. Having to join another broker, complexity, deposit and high cost puts ( note the pun please ) me off.
robster970
Veteren member
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1446
Good grief, great call, Ill go bit higher 1449
robster970
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So a monster move this week into the new territory of 1465.77, approx 4% in the last couple of days.
All of us where a bit on the low side but this week's 1-2-3 are:
1) Gaffs1964
2) dpinpon
3) Vielgeld
Well done Gaffs, dpinpon and Viel for 'podiuming'. :clap:
We've got 2 weeks left of Q3 and any one of the top 4 could have it but it'll take a bit of work to catch up to ibetyou.
https://docs.google.com/spreadsheet/ccc?key=0AnFF2Rblu36wdGRNQjNXTzVjdldJb2dXdjRVTGs5VVE#gid=0
We've not seen this chap for a bit so a big S&P blessing to all of us:
All of us where a bit on the low side but this week's 1-2-3 are:
1) Gaffs1964
2) dpinpon
3) Vielgeld
Well done Gaffs, dpinpon and Viel for 'podiuming'. :clap:
We've got 2 weeks left of Q3 and any one of the top 4 could have it but it'll take a bit of work to catch up to ibetyou.
https://docs.google.com/spreadsheet/ccc?key=0AnFF2Rblu36wdGRNQjNXTzVjdldJb2dXdjRVTGs5VVE#gid=0
We've not seen this chap for a bit so a big S&P blessing to all of us:
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Pat494
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* Cyclical shares gain; global shares near 13-month highs
* Dollar hits 4-month low against euro on Fed action, ECB
* Treasury yields rise as safe-haven bid ebbs, Fed buys MBS
* Italian 10-year yields fall below 5 percent
* Gold reaches 6-1/2-month high after Fed; oil extends gains
By Ellen Freilich
NEW YORK (Frankfurt: A0DKRK - news) , Sept 14 (Reuters) - The Federal Reserve's aggressive new plan to spark the U.S. economy boosted risk assets on Fr iday, sending global stocks to a 13-month high and driving the dollar to a more than four-month low against the euro.
Brent crude oil rose to a four-month peak, the S&P 500 (SNP: ^GSPC - news) neared a five-year high and European shares rose to their highest levels in 14 months.
The Fed on Thursday said it would pump $40 billion into the economy each month until the jobs market shows sustained improvement. The aggressive action enhanced what was an already upbeat mood in financial markets since the European Central Bank announced plans to cut the borrowing costs of struggling euro zone members.
"Markets had expected more quantitative easing, but they hadn't expected Bernanke and the Fed to be as aggressive as they were," said Jeffrey Given, senior managing director and senior portfolio manager at John Hancock Asset Management in Boston.
Fed Chairman Ben Bernanke on Thursday cited the dire state of the U.S. labor market, saying it remains a "grave concern."
"The Fed made it sound as if even after the economy recovers, interest rates will remain low. More people are moving into risky assets because Ben is not going to pull the punch bowl away," Given said.
On Wall Street, stocks finished higher, with cyclicals and financials leading the way. An index of U.S. housing shares, aided by the Fed's plan to buy mortgage-backed securities, rose 2.7 percent.
The Dow Jones industrial average rose 53.51 points, or 0.40 percent, to end at 13,593.37. The Standard & Poor's 500 Index climbed 5.78 points, or 0.40 percent, to 1,465.77. The Nasdaq Composite Index jumped 28.12 points, or 0.89 percent, to 3,183.95.
Brian Jacobsen, chief portfolio strategist at Wells Fargo (Dusseldorf: NWT.DU - news) Funds Management, LLC in Menomonee Falls, Wisconsin, said the Fed's balance sheet could expand by 11 to 12 percent by the end of the year, monetary accommodation that could "translate into a move up in the S&P 500 stock index to the 1,505 area."
In bond markets, yields on 10-year Italian government bonds fell below 5 percent for the first time since late March as the Fed's announcement added momentum to a rally dating from late July.
In contrast, the benchmark 10-year U.S. Treasury note price fell 1-9/32, its yield rising to 1.87 percent from 1.73 percent late on Th ursday as investors exited safe-haven debt in search of higher returns in riskier assets.
"A lot of good news out of Europe (Chicago Options: ^REURUSD - news) had already caused risk markets to rally going into the Fed meeting so the Fed's open-ended plan to buy mortgage-backed securities, its intent to keep rates low until mid-2015, and its strategy to keep monetary policy highly stimulative - even if the economy accelerated - was a pretty potent combination and threw fuel on the rally," said Robert Tipp, chief investment strategist for Prudential (LSE: PRU.L - news) Fixed Income, with $330 billion in assets under management.
Euro zone finance ministers met in Cyprus on Friday, hoping to build on progress the bloc has made this month following plans announced by ECB President Mario Draghi and a German court's green light this week for the euro zone's ESM bailout fund.
European equities surged, with the pan-European FTSEurofirst 300 index rising 1.25 percent to 1,120.15. The MSCI index of global stocks jumped 1.6 percent to 340.03, near its highest level since August last year.
DOLLAR WEAKNESS
The dollar index fell 0.5 percent to near four-month lows at 78.903.
The dollar's broad decline left the euro at a four-month high above $1.31, the latest in a string of technical and psychological levels it has cut through this week.
"With Europe getting their act together (at least temporarily), the Fed flooding the market with cash, and China talking (about) stimulatory infrastructure projects, the three largest influences of market dynamics could be creating a bull market for at least the near term," said Neal Gilbert, currency strategist at GFT Forex.
* Dollar hits 4-month low against euro on Fed action, ECB
* Treasury yields rise as safe-haven bid ebbs, Fed buys MBS
* Italian 10-year yields fall below 5 percent
* Gold reaches 6-1/2-month high after Fed; oil extends gains
By Ellen Freilich
NEW YORK (Frankfurt: A0DKRK - news) , Sept 14 (Reuters) - The Federal Reserve's aggressive new plan to spark the U.S. economy boosted risk assets on Fr iday, sending global stocks to a 13-month high and driving the dollar to a more than four-month low against the euro.
Brent crude oil rose to a four-month peak, the S&P 500 (SNP: ^GSPC - news) neared a five-year high and European shares rose to their highest levels in 14 months.
The Fed on Thursday said it would pump $40 billion into the economy each month until the jobs market shows sustained improvement. The aggressive action enhanced what was an already upbeat mood in financial markets since the European Central Bank announced plans to cut the borrowing costs of struggling euro zone members.
"Markets had expected more quantitative easing, but they hadn't expected Bernanke and the Fed to be as aggressive as they were," said Jeffrey Given, senior managing director and senior portfolio manager at John Hancock Asset Management in Boston.
Fed Chairman Ben Bernanke on Thursday cited the dire state of the U.S. labor market, saying it remains a "grave concern."
"The Fed made it sound as if even after the economy recovers, interest rates will remain low. More people are moving into risky assets because Ben is not going to pull the punch bowl away," Given said.
On Wall Street, stocks finished higher, with cyclicals and financials leading the way. An index of U.S. housing shares, aided by the Fed's plan to buy mortgage-backed securities, rose 2.7 percent.
The Dow Jones industrial average rose 53.51 points, or 0.40 percent, to end at 13,593.37. The Standard & Poor's 500 Index climbed 5.78 points, or 0.40 percent, to 1,465.77. The Nasdaq Composite Index jumped 28.12 points, or 0.89 percent, to 3,183.95.
Brian Jacobsen, chief portfolio strategist at Wells Fargo (Dusseldorf: NWT.DU - news) Funds Management, LLC in Menomonee Falls, Wisconsin, said the Fed's balance sheet could expand by 11 to 12 percent by the end of the year, monetary accommodation that could "translate into a move up in the S&P 500 stock index to the 1,505 area."
In bond markets, yields on 10-year Italian government bonds fell below 5 percent for the first time since late March as the Fed's announcement added momentum to a rally dating from late July.
In contrast, the benchmark 10-year U.S. Treasury note price fell 1-9/32, its yield rising to 1.87 percent from 1.73 percent late on Th ursday as investors exited safe-haven debt in search of higher returns in riskier assets.
"A lot of good news out of Europe (Chicago Options: ^REURUSD - news) had already caused risk markets to rally going into the Fed meeting so the Fed's open-ended plan to buy mortgage-backed securities, its intent to keep rates low until mid-2015, and its strategy to keep monetary policy highly stimulative - even if the economy accelerated - was a pretty potent combination and threw fuel on the rally," said Robert Tipp, chief investment strategist for Prudential (LSE: PRU.L - news) Fixed Income, with $330 billion in assets under management.
Euro zone finance ministers met in Cyprus on Friday, hoping to build on progress the bloc has made this month following plans announced by ECB President Mario Draghi and a German court's green light this week for the euro zone's ESM bailout fund.
European equities surged, with the pan-European FTSEurofirst 300 index rising 1.25 percent to 1,120.15. The MSCI index of global stocks jumped 1.6 percent to 340.03, near its highest level since August last year.
DOLLAR WEAKNESS
The dollar index fell 0.5 percent to near four-month lows at 78.903.
The dollar's broad decline left the euro at a four-month high above $1.31, the latest in a string of technical and psychological levels it has cut through this week.
"With Europe getting their act together (at least temporarily), the Fed flooding the market with cash, and China talking (about) stimulatory infrastructure projects, the three largest influences of market dynamics could be creating a bull market for at least the near term," said Neal Gilbert, currency strategist at GFT Forex.
Pat494
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"With Europe getting their act together (at least temporarily), the Fed flooding the market with cash, and China talking (about) stimulatory infrastructure projects, the three largest influences of market dynamics could be creating a bull market for at least the near term," said Neal Gilbert, currency strategist at GFT Forex.
A definite lack of ideas by the politicians who just want a short term fix to get votes from a gullible public. So it looks like a bull bubble and then a slide to ............? and of course it won't be their fault.
A definite lack of ideas by the politicians who just want a short term fix to get votes from a gullible public. So it looks like a bull bubble and then a slide to ............? and of course it won't be their fault.
wackypete2
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1449
