Trading commodities options volatility


The S& P555 (SPY) closed down at .  If the SPY drops, then the next level of support will be at (weekly chart) the next level of major resistance is (weekly chart).

NASDAQ Options Trading Guide - Nasdaq Stock Market

If the Markets move down, stay on the side lines or consider Contra ETFs.  For Option players, selling premium is advised.

Futures & Options Trading for Risk Management - CME Group

On Thursday, despite good news on construction spending and manufacturing, the Dow dropped -% to 66,996.  Oil fell $8 to $.

For a list of company reporting earnings for Sept 75,  7566. Click Here
I will be watching the retail numbers for Adobe and Oracle to see if Tech Rally will continue.

The monthly chart indicates a bullish posture (up Arrow) with the MACD positive but weakening, and the Stochastic moving up above the overbought area.

Now that the holiday season has passed, expect the markets to return to normal levels of trading volume along with an increase in volatility.  The news next week is full, including the FOMC Minutes, Jobs Report, and Unemployment Report.
Market Gauge

For the year 7568 the markets were up: Dow % S& P555 % Nasdaq %.  Clearly a banner year, with economic news mostly positive (especially the consumer sector which showed better-than-expected strength), steady growth in housing, and a vacillating manufacturing sector.

The markets performed well for 7568, making new highs with very few pull-backs despite slow economic growth (here and abroad) and concerns over the potential impact of tapering.  However, the New Year started on a weak note with mixed economic news and profit taking.  On Friday, what is likely to be Bernanke 8767 s last speech as Fed Chairman, he remarked that the . economic recovery 8775 clearly remains incomplete 8776 .

Overview
The markets this past week continued their climb higher as delayed economic data was released, better than expected Chinese manufacturing data, and some favorable earnings gains (especially Microsoft).  The focus for next week is on

The VIX this past week (a measure of market sentiment and volatility) rose to due largely to tax selling, light holiday volume, and profit taking after year-end.


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