S&P 500 - bounced off the 9day EMA looking to attack recent highs at 1570. Could reach 1600. Talk of feds decreasing interest rates is bullish for the economy.

Ways you could trade the S&P 500:

Synthetic call: Buy a put at 1550 (39.20), Long Market

Collar : Sell Option at 1600(13.80), Buy at put @ 1550 (39.20) , Long Market

Option as a stop: Buy @ 9day EMA 1535 Put (27.60), Long Market exit at 5% rule or better

Ratio Calls: sell 1550 (39.20),buy 2 1560(33.10), 1570 (27.40)  or 1575 (24.80)

Bull Call Spread: Buy 1550(39.20), Sell 1600 call (13.80)

Bears!

Crude Oil-coming off of all times after summer drive time season is over. There is a tremendous amount of oil inventory un accounted for and OPEC is panicking at the threat of biofuels. There may be a potential for a huge dump of oil in the markets.

Ways to trade Crude Oil:

Synthetic Put: Buy call 80 (2.36), Short futures

Collar: Buy Call 80 (2.36), Short futures, Sell put 74 (.48), 75 (.56)

Ratio Put: Sell put 82(3.60)/80 (2.36), Buy puts 81 (2.94)/78.50 (1.60)

Bear Put Spread: Buy put: 80 (2.36), Sell put: 74 (.48)

Gold - With currency collapse of the dollar gold has found unexpected renewed interest. Unfortunately if the Fed drops interest rates a flight from gold to stocks is the likely direction. Gold's recent heights have been ambitious, even for this storehouse of value, some profit taking and retracement has to occur. 

Ways to trade Gold:

Collar: Buy call 750 ( 7.00) fs (14.30), Short futures, sell put 695 (2.20)fs(4.70), 700 (1.60)fs(5.70)

* E-mail me at noble@liverpoolgroup.com to obtain "Bull/Bear Charts" or visit us at www.speculatoracademy.com to sign up for your trading course today.

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