Monday, July 13, 2009

Morning Update/ Market Thread 7/13

Good Morning,

Futures are flat to up a little this morning after being down hard last night and then making a U-turn. Oh yeah, that's real natural looking (not!):



No economic data this morning, the Treasury releases their budget this afternoon and later in the week we’ll get the PPI and CPI numbers for June. As trumped up as they are, they will still give us an indication of how close we are to being in a deflationary spiral.

Here’s the 60 minute snapshot showing the Head & Shoulders pattern. It is now confirmed and the 888 area is acting as resistance for now:



There was a small change in the McClelland Oscillator on Friday, so look for a large price movement today or tomorrow. The short term stochastics are all in the middle, so no help with direction there. The daily stochastic is oversold and the weekly is still on a sell signal.

Below is a link to a video called “What is an Option Worth?” It’s 45 minutes long and is a terrific video on how to value an option. This is an upper level lesson on implied volatility, yet it is simply presented so that you can understand it. If you are trading options, you really should spend the time to view this video. Thanks to Dean Mouscher for starting this new website to educate retail investors:

What is an Option Worth?

Emerson, Lake & Palmer - Welcome Back My Friends, To The Show That Never Ends