Weekly Market Assessment
This week has become a game of headline roulette. From the geopolitical events taking place with Syria, our own debt and monetary issues at home, makes trading the market no longer a fundamental approach. If we have strong economic data, then concerns over the Federal Reserve tapering back its bond purchases enters (now called taper light). Weak data brings uncertainty of a fragile economy, throw in a potential missile attack on Syria and we have a perfect storm for market turbulence. The market has traded all over the place and of course people have flooded into the safe havens. The 10 Year Treasury Bond yield has dropped 18 basis points to 2.72% as investors flock to safety, gold jumped over a huge resistance point of $1400 as precious metals are a favored currency and of course the drop in the equity market has spiked the VIX (volatility index) 13%. Frustration and market direction hinge on the next headline or sound bite coming out of a mouths of those closest to the matter. We are currently trading at the 50% Fibonacci retracement level and below the 100 day moving average on the S&P 500. Truly in the land of confusion as we will wait to see where the wheel stops to give traders a new conviction on market direction.
From the Trading Floor to the Option Pit: A quick look at what's on the trading desk
E-Mini S&P 500 futures- Volatility remains in the market but figuring out direction as mentioned above remains difficult and my results show that. A weekly loss in the E-minis was 23% Joy Global (JOY)- engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. After reported better than expected earnings the stock dropped on weak guidance and future outlook in the mining industry. I picked up shares in JOY as it traded below its 50 day moving average with a trade in at $48.25. This will remain a short term trade.
Fortinet (FTNT) -provides network security solutions worldwide. Been watching this for awhile and a new position was taken in FTNT at a share price of $20. It has found support at its 50 day moving average.
Herbalife (HLF)- through its subsidiaries, produces and distributes weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide. I have bought September $61"PUTS" as HLF has traded to new highs and has now fallen below its 20 moving average and looks to be heading to its 50 day moving average. Current price is $61.22