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2015-07-28 12:26:14

Posted by
Andrew Wilkinson
Chief Market Analyst
Interactive Brokers
Contributor
Options

Chesapeake rally inspires bullish put option play

Shares in Chesapeake Energy Corporation (Ticker: CHK) are higher by 1.5% at $8.55 despite ongoing weakness in the oil patch. The rally in the stock appears to have inspired a bullish put spread in the September expiration. An investor appears to have sold 60,000 spreads using the 8.00 and 6.00 strike prices for a credit of 61-cents on the Philadelphia Exchange. The option strategy is possibly a well-timed wager that shares in Chesapeake may have found bottom. Yesterday the share price fell to $8.11. The share price has fallen from $28.00 a year ago and this investor is happy enough today to take on the risk of a decline below $8.00 over the next couple of months in exchange for the net credit of 61-cents. That means that the trade would start to lose money for the investor at a share price of $7.39 or 13.6% below its latest traded price.

Chart – Chesapeake reached $8.11 in Monday’s rout

 

The analysis in this article is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
 

 

 

2015-07-28 11:42:14

Posted by
Barron's

Contributor
Options

China Bloodbath Offers Investors Chance to Profit

With stocks in China tumbling, this options trade can provide valuable protection to investors.

 

Investors who are worried that China’s stock market woes will worsen can buy bearish put options on the Deutsche X-Trackers Harvest CSI 300 Index ETF to hedge against declines.

The recommendation follows the recent 8.5% decline on the Shanghai Composite Index. The decline was the worst since February 2007. Some attributed the weakness to fears China’s government might reduce its support of the troubled equity market. Sentiment is so dour that a major bank strategist likened China’s market to America’s 1929 stock market crash.

To hedge, investors can buy the Deutsche X-Trackers Harvest CSI 300 Index ETF (ASHR) October $38 put. The put cost $4.10 when the ETF was around $39. Puts increase in value when associated securities decline. If the ETF falls to $30, the put is worth $8. Investors should note that shorting ASHR can be a pricey proposition.

While it is fine to maintain a long-term bullish view on China, a view oft-espoused in this column, it is difficult to discount increasingly dour investor sentiment. Investors are beginning to wonder if China’s government has the ability to control the market crisis. This fear may prove more powerful than any strategic countermeasures initiated by China’s government.

David Cui, Bank of America Merrill Lynch’s China strategist, is likening China’s market woes to America’s 1929 stock market crash. In a note to investors, Cui said the bank expects the A-share market to behave similarly to the New York Exchange in 1929. He expects an initial wave of selling, followed by some support and stabilization, and another wave of selling when support is withdrawn.

“The key characters of these two markets are the same: over leverage and rich valuation unsupported by fundamentals,” Cui wrote in a note to clients.

Michael Block, Rhino Trading Partners’ strategist, advised clients that China’s authorities are doing their best to steady the market, but clearly face a learning curve.

“They are trying to see how much and how little they can do and the result is some wild . . . swings,” that cannot be gamed, Block opines.

Until China’s authorities figure out the proper approach, the October put offers investors a hedge against uncertainty.
 

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This article is from Barron's and is being posted with Barron’s permission. The views expressed in this article are solely those of the author and/or Barron's and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-07-28 10:57:57

Posted by
Andrew Wilkinson
Chief Market Analyst
Interactive Brokers
Contributor
Futures

Crude on sale

A political deal with Iran, weakening industrial demand in China and US shale initiatives continue to provide a poor backdrop for the price of crude oil. You can argue the recent rise in the value of the dollar in either direction. It is either signaling a strengthening domestic economy, but one that won’t definitely suck in crude imports, or else it is reacting as the least dirty shirt in the laundry basket. In the latter case, its value is rising at the expense of global currency units hampered by late-to-the-game asset purchase policies. Either way, the fundamental backdrop is not necessarily conducive to limiting excess supply, or at least the dollar is not the villain in terms of hampering commodity prices this time around. Casting an eye over the situation one year ago reveals just how much the price of crude oil is currently on sale. At $47.31 a barrel the price is lower by $46.64 according to the accompanying term structure chart. A year ago the least expensive price of oil could be found at the December 2022 expiration at $86.47 per barrel. Twelve months later as the bearish fundamental backdrop inspires the bears to once again flex their muscles, oil at that same expiration is now the most expensive across the curve at $64.56 – some 25% weaker than last year. 

Chart – Nearby crude futures 50% lower than year ago

 

The analysis in this article is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
 

2015-07-28 10:29:57

Posted by
CME Group

Contributor
Futures

Fed Fund Futures Trading Surges Ahead of Key FOMC Meeting

July 28-29 FOMC Meeting Could Signal a Potential September Increase

Trading in Fed Funds futures and options is surging as a September rate hike is back on the table. Market participants use these products to position their portfolios ahead of FOMC actions, as they provide direct reflection of collective marketplace insight regarding the future course of monetary policy

  • July Average Daily Volume (ADV) of ~70,000 contracts, more than twice July 2014 ADV
  • 135 Large Open Interest Holders, adding roughly 50 new participants year-over-year
  • Open Interest is now over 891,000 contracts

 

Helping the World Advance: CME Group comprises four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

Futures trading is not suitable for all investors, and involves risk of loss. Futures are a leverage instrument, and because only a percentage of a contract's value is required to trade, it is possible to lose more than the amount of money initially deposited for a futures product.

CME Group is the trademark of CME Group, Inc.
The Globe logo, Globex® and CME® are trademarks of Chicago Mercantile Exchange, Inc.
CBOT® is the trademark of the Board of Trade of the City of Chicago.
NYMEX, New York Mercantile Exchange, and ClearPort are trademarks of New York Mercantile Exchange. Inc.
COMEX is a trademark of Commodity Exchange, Inc

Copyright © 2015 CME Group. All rights reserved.

 

This article is from CME Group and is being posted with CME Group’s permission. The views expressed in this article are solely those of the author and/or CME Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
 

2015-07-28 09:28:44

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

Sector News Breakdown

Consumer

  • Del Taco (TACO) Q2 revs $97.6M, EBITDA $15.3M an Q2 comp system-wide comp sales 6.0% and company-owned comparable restaurant sales growth of 5.9%
  • J & J Snack Foods (JJSF) Q3 EPS $1.30/$278.7M vs. est. $1.33/$266.3M
  • Allison Transmission (ALSN) Q2 EPS 30c/$511M vs. est. 34c/$505.72M; sees FY15 net sales down 6%-8%
  • General Motors Co. (GM) is investing $5 billion to expand its Chevrolet lineup to gain market share and boost profits in emerging markets including Brazil, China, India and Mexico

Energy

  • BP Plc (BP) reported the lowest quarterly profit in at least 10 years; profit adjusted for one-time items and inventory changes dropped to $1.3 billion in the second quarter, 64% lower than a year earlier and below the $1.7B estimate
  • Southwestern Energy (SWN) Q2 EPS loss (2c)/$764M vs. est. 6c/$789.62M; sees Q3 production 246-250 BCFE; sees Q4 production 249-254 BCFE. Prior guidance was 238-242 BCFE and 247-251 BCFE for Q3 and Q4, respectively
  • Arch Coal (ACI) postpones on-for-ten reverse stock split
  • Bonanza Creek (BCEI) Q2 eps loss (14c) vs. est. loss (11c); sees 2015 capex $400m-$440m vs. prior view $400m-$420m

Financials

  • Hartford Financial (HIG) Q2 EPS 91c/$4.685B vs. est. 77c/$4.7B; book value per diluted share, excluding accumulated other comprehensive income, was $42.41, up 8% over June 30, 2014; raised dividend to 20c; raises share repurchase plan by $1.6B
  • Heartland Financial (HTLF) Q2 EPS 72c vs. consensus 66c; Net interest margin, expressed as a percentage of average earning assets, was 3.97%, up from 3.9%
  • Torchmark (TMK) cuts year eps view to $4.18-$4.28 from $4.20-$4.36 (est. $4.29) citing higher than expected direct response benefits expense; Q2 EPS missed by 1c at $1.05
  • PartnerRe (PRE) Q2 EPS ex-items $2.39/$1.19B vs. est. $2.35/$1.43B; book value of $127.24 per share, down 2.0% for the quarter and up 0.8% year-to-date
  • W. R. Berkley (WRB) Q2 EPS 81c (in-line) and revs $1.79B vs. est. $1.88B; return on equity 10.7%
  • AvalonBay (AVB) Q2 core FFO $1.87/$457.46M vs. est. $1.84/$451.51M; sees Q3 FFO $1.90-$1.94 vs. est. $1.86
  • UDR, Inc. (UDR) Q2 AFFO 42c/$215.9M vs. est. 41c/$211.19M; raises year revs and NOI comps view
  • Great Western (GWB) 12.56M share Secondary priced at $23.50

Healthcare

  • Hikma Pharmaceuticals Plc (HIK.L) said it would buy German drugmaker Boehringer Ingelheim's U.S. specialty generic drugs business for about $2.65 billion in cash and stock to bolster its presence in the United States http://goo.gl/pxMcYr
  • FibroGen (FGEN) said the FDA has completed its review of the company's investigational new drug, or IND, application for the study of FG-3019 in patients with Duchenne muscular dystrophy, or DMD, and clinical study may proceed
  • Adeptus Health (ADPT) offers to sell 1.91M shares of common stock
  • Cara Therapeutics (CARA) files to sell $65M in common stock
  • United Therapeutics (UTHR) 2Q EPS $1.91/$347.2M vs. est. $2.31/$361.08m; said Q2 Remodulin revs $136.0m vs. est. $149.6m
  • Teva (TEVA) upgraded to Outperform from Market Perform at BMO Capital
  • NantKwest (NK) 8.29M share IPO priced at $25.00

Industrials & Materials

  • DuPont (DD) Q2 EPS $1.18/$8.6B vs. est. $1.18/$8.75B; Sees operating EPS for year $3.10, at seen low end of $4.00-$4.20 (includes 60c negative FX effect); sees year net sales down mid-to-high single digits and cuts year view for agriculture segment on weaker demand; cuts quarterly dividend to 38c from 49c
  • Textron (TXT) Q2 EPS 60c/$3.25B vs. est. 59c/$3.42B; Bell delivered 6 V-22s (vs 10 in 2Q 2014), 6 H-1s (vs 8 in 2Q 2014), 39 commercial helicopters (vs 46 in 2Q 2014); backlog $2.7b at end of qtr, down $218m vs end of 1Q; reaffirms year
  • Precision Castparts (PCP) cuts year forecast to reflect interest expense from June bond issuance of $2B; now sees FY EPS $12.25-$13.15, had seen $12.50-$13.40 but reaffirms year sales
  • Honeywell International Inc. (HON) said it would buy the utility consumption meter business of Britain's Melrose Industries Plc for 3.3 billion pounds ($5.14 billion) http://goo.gl/2klNM0
  • Danaher (DHR) upgraded to Overweight at Morgan Stanley
  • Raytheon (RTN) upgraded to buy at Bank America
  • Crane (CR) Q2 EPS $1.06/$711.2M vs. est. $1.06/$704.9M; cuts year EPS view to $4.10-$4.30 from prior $4.30-$4.50 (est. $4.37); also cuts year sales view to down 1%-up 1% from prior 0%-2%
  • Eastman Chemical (EMN) Q2 EPS $2.01/$2.53B vs. est. $1.83/$2.65B; says earnings outlook for year has improved
  • Swift Transport (SWFT) Q2 EPS 37c/$1.06B vs. est. 37c/$1.10B; backs FY15 adjusted EPS $1.64-$1.74 vs. consensus $1.69
  • Waste Connections (WCN) Q2 EPS 50c/$531.3M vs. est. 50c/$529.05M
  • Syngenta (SYT) says Monsanto's (MON) $2 billion break-up fee comes with caveat http://goo.gl/vwcMJS

Media & Telecom

  • Plantronics (PLT) Q1 EPS 67c/$206.36M vs. est. 63c/$205.59M; guides Q1 revs $202M-$212M vs. est. $208M
  • Knowles (KN) Q2 EPS 8c/$240.9M vs. est. 7c/$250.63M; sees Q3 revenue $275M-$295M vs. est. $290.66M
  • Time Inc. (TIME) CEO Joe Ripp has been aggressively pushing work in online video, 'native' ads and 'big data' in an effort to save the company – WSJ reports

Technology

  • Baidu (BIDU) Q2 EPS ex-items $1.81/$2.67B vs. est. $1.88/$2.67B; sees Q3 sales $2.93B-$2.997B vs. est. $3.03B; had ~590k active online marketing customers in 2Q, up 12.6% QoQ
  • Amkor Technology (AMKR) Q2 EPS ex-items 8c/$736.7M vs. est. 11c/$746.75M; guides Q3 sales $700M-$750M, below views of $820M, and cuts year capex by $50M to $550M
  • Cadence Design (CDNS) Q2 EPS beats by 3c, files automatic mixed securities shelf; announces new $1.2B stock repurchase program
  • MicroStrategy (MSTR) Q2 EPS $1.95/$132.94M vs. est. $1.39/$127.99M
  • Monolithic Power (MPWR) Q2 EPS 46c/$81.4M vs. est. 45c/$80.96M; sees Q3 revenue $89M-$93M vs. consensus $89.43M and sees Q3 GAAP gross margin 53.9%-54.9%
  • Audiocodes (AUDC) cuts year revs to $137m-$143m from saw $158m-$162m as 2Q revs dropped to $32.4m vs est. $34.2m
  • Benefitfocus (BNFT) files to sell 2.5M shares for The Goldman Sachs Group
  • Sensata (ST) sees Q3 adjusted EPS 68c-74c on revs $715M-$755M vs. est. 75c/$767.09M

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-07-28 09:23:48

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

The Hammerstone Report

U.S. futures point to a rebound early after equity markets sank on Monday, with the NASDAQ dropping nearly 1% following the steepest decline in Chinese stocks in eight years (fell over 8% Sunday night) raising concerns of cooling growth in the world's #2 economy. The Dow Jones industrial average finished at its lowest level since February and the S&P 500 chalked up a five-session losing streak for the first time since January. In addition, 480 stocks hit 52-week lows on the New York Stock Exchange, the most in one day since Oct. 15. Commodity prices resumed a downward spiral, with the Thomson Reuters CRB commodities index hitting a six-year low and oil a four-month low. As for today, a busy day on the economic front, while earnings remain center stage.

In Asian markets overnight, The Nikkei Index slipped 21 points to 20,328, the Shanghai Index dropped another 62 points, or 1.68% after falling 8.5% the day prior, and the Hang Seng Index rose 151 points to 24,503. Note Asian stocks fell to three-week lows on Tuesday as a deepening rout in Chinese stocks erased risk appetite - sending investors flocking to safe-haven instruments such as government bonds and the Japanese yen. European markets bounce, up more than 1% (to snap a 5-day losing streak).

World News

  • Greece’s latest cycle of talks with its creditors started with a quarrel, as officials argued over what upfront commitments the government has yet to implement in order to tap emergency loans next month

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-07-28 04:35:12

Posted by
Elaine Chen
Sales Trader
International Business Division
Guosen Securities
Contributor
Macro

GUOSEN Closing Bell (July.28)

MARKET

Chinese stocks closed lower today, with the benchmark Shanghai Composite Index ended at 3663.00 points. The A share market extended loss today, shrugging off Beijing’s promises of more support for the market. Financial sectors led the gains; while computer and communication sectors led the falls. Combined turnover for both markets was 1303.8 bn yuan, down 6.1% dod.

 

CLOSE

%CHG

VOL (bn yuan)

%YTD

SH Composite

3663.00

-1.68

685.0

+13.24

SZ Component

12316.78

-1.41

618.8

+11.82

CSI300

3811.09

-0.20

482.6

+7.85

ChiNext

2581.96

-3.78

154.7

+75.43

 

Sector

Top 1

Led by

Top 2

Led by

Upward-leading

Non bank financial

002736

Bank

600016

Downward-leading

Computer

300074

Communication

300205

 

NEWS

*Centrally-administered state-owned enterprises (SOEs) performed well in the first half of the year, regulators said on Tuesday. These SOEs have seen a steady rise of profitability, especially in the second quarter of the year, the State-owned Assets Supervision and Administration Commission of the State Council said. In the first six months, they garnered an operating revenue of 11 trillion yuan (1.8 trillion U.S. dollars) and reaped 643 billion yuan of profits. (Xinhua)

*Changzhou Xingyu Automotive (601799.SH) released its report for the first half of 2015 on 27 July. The company achieved operating revenue of RMB1.144 billion in the first half of the year, representing a year-on-year growth of 29.98%. Net profit attributable to the shareholders of listed company added 21.68% on a yearly basis to RMB136 million. In addition, the company's automative lighting project is expected to put into production from the fourth quarter this year. (AAstocks)

*Greenland Holding Group and CICC entered into a strategic cooperation agreement in Beijing and both parties intend to carry out all-round cooperation in the fields of industry funds, equity financing and bond financing, acquisitions and mergers, investment and RQFII, strategic consultancy and industry research, etc.  (AAstocks)

FUND FLOW

This article is from Guosen Securities Co., Ltd. and is being posted with Guosen Securities Co., Ltd.’s permission. The views expressed in this article are solely those of the author and/or Guosen Securities Co., Ltd. and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-07-28 01:03:45

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

Euro Stoxx 50 (ESTX50) Rejected at Weekly Chart Downchannel Resistance

The Euro Stoxx 50 (FESX) continued rolling over yesterday, after having been soundly rejected last week at downchannel resistance (on the weekly chart).  The FESX is now nearing horizontal support at 3500.  Weekly and daily RSI, Stochastics and MACD are bearishly sloping down, with the daily MACD making a negative crossover.  I'm flat the FSEX now and will look to short intraday today in the 3550-3600 range.

For more information about Tradable Patterns, click here.

 

Euro Stoxx 50 (Eurex FESX Sep15) Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-07-28 01:02:50

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

DAX (DAX) Rejected at Weekly Chart Downchannel Resistance

The DAX (FDAX) continued rolling over yesterday, after having been soundly rejected last week at downchannel resistance (on the weekly chart).  The FDAX is now nearing horizontal support at the 11000 whole figure, along with downchannel support (on the 4hr chart).  Weekly and daily RSI, Stochastics and MACD are bearishly sloping down, with the daily MACD making a negative crossover.  I'm flat the FDAX now and will look to short intraday today near downchannel resistance (on the 4hr chart).

For more information about Tradable Patterns, click here.

 

DAX (Eurex FDAX Sep15) Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-07-28 01:01:33

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

EURUSD Breaks Daily Chart Downchannel Resistance

The EURUSD surged yesterday, breaking above the 1.1 psychologically key resistance level, along with downchannel resistance (on the daily chart).  Significantly, it refused to fall towards the 2015 low last week, forming what appears to be a higher low versus the March and April lows.  The EURUSD is now nearing upchannel resistance (on the 4hr chart).  Weekly and daily RSI, Stochastics and MACD are mostly rallying or about to.  I will look to go long intraday today near the 4hr chart's upchannel support.

For more information about Tradable Patterns, click here.

 

EURUSD Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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