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Hi Everyone,
Just wanted to let people know that I am pulling some very interesting
readings from some of my indicators.
Indicators:
DOWNS Fear Index - An indicator which measures psychological and
emotional market levels.
FIBFEAR Indicator - A matrix indicator which is a combination of
mathematical fear, Fibonacci and Gann retracement levels and moving
averages.
Market Outlook:
FIBFEAR and the FEAR index indicate a major breakout in Corn, Wheat
and especially Soybeans.
Possible strategies:
Volatility ATM Long Option Straddles OR
BUY March calls for short-term trade and Buy May Calls looking to sell
higher options against favorable moves for the long term. I'm looking
for a particularly strong move in Beans today or tomorrow.
Low otion volatility makes these trades attractive.
**********
Both indicators also show a possible bottom in Crude Oil.
With Volatility at high levels, ratio spreads in either direction
look tasty. How about a combination here of calendar/ratio spreads.
Bear ratio spreads in the front month, and bull ratios in the back
months.
With Clinton "Fornigate" going on, look for massive volatility surges
in OTM options in Silver, Gold and the foreign currencies. I will be
placing Bull ratio spreads in the late afternoon to take advantage of
this.
********
FIBFEAR and FEAR Index also indicate possible bottom in Bonds.
Excellent opportunity to put on bull ratio spreads on prices near
Friday's low. Option vol is high and may go higher during all of
this week .
CHARGE!!! <G>
Walt Downs
CIS Trading
http://cistrader.com
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