This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, January 20, 2017.
Happy Inauguration Day!
Hope everyone had a good trading week – new on this report is the Economic Calendar in the week ahead section below which will show implied volatility for each specific report. Have any question please feel free to contact me.
In The Markets
Emini S&P – ESH6 (Mar ’17)
S&P is trading sideways overall since Dec. 13 strong overhead resistance at 2271.00 and support coming in at 2261.00 creating higher lows. I know many of us are looking forward to increased volatility which I feel is coming.
Gold – GGCZ6 (Feb ‘17)
Interesting to note, Gold just made a fresh up-side bullish cross on the daily charts, however the weekly charts still indicating a bearish track. Next week will be interesting to see how this market plays out in particular beings Trump first week in office..
Soybeans – ZSF7 (Mar ‘17)
Last week I mentioned we had a ‘fresh downside cross’ in the beans, only to be completely wrong with the fundamentals taking over due to continued rains in Argentina and the general trader consensus downsizing their yield to 50 million from the USDA’s 57 million. I’d expect some back n’ fill action from this blow off
Crude Oil WTI – GCLG6 (Feb ’17)
Crude Oil had had a small build this week of 2.247M barrels which kept prices on the lower end of the range, however looks like it’s looking for a bounce at these levels.
T-Bonds – ZBZ6 (Mar ’17)
30YR Bonds had a sharp reversal this week trading off its highs as well coming down a few pts. keeping in line with the long term weekly and daily charts which remain bearish.
U.S. Dollar – DX-MZ6 (Mar ’17)
USD put in a high of 103.815 then sold off sharply due to Trumps comments that the USD is too high with decent support coming in at 100.30. Short term the USD is trying to go bearish, however if you look at the weekly all we did was some back n’ fill action positioned for a bounce.
(S) OSIU7 C22.00 Option Call Dec. 23rd Open P/L: -375.00 Risk $1,000
(S) OSIH7 C17.50 Option Call Jan. 9th Open P/L: -20.00 Risk $1,000
Exited our Crude spread this week for a small profit, looking for our next opportunity.
The Week Ahead (Central Times)
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