Storm shut downs WallStreet, American markets are closed for the week. Here is what the geek has to offer us:
Originally posted by Michael Hodges. For the full tips click here.
S&P 500
Call/Put = Call
Entry = below 1400
Expiration = end of the month
I still believe in my previous predictions of another bull leg. The storm will undoubtedly bring volatility to the market when it opens but this should end soon. I believe we are very near the “earnings bottom” and any more downside, especially if there is a sharp drop following the storm, will be a time to buy. Once the storm passes and insurance money starts flowing through the system GDP will surely pick up.
Allianz
Call/Put = Put
Entry = Above $93
Expiration = end of the month
Allianz appears to be topping near long term resistance. Profits and growth has been slowing and now with the added pressure of paying out millions, perhaps billions in insurance claims will surely fall short of expectations. I am buying a put on Allianz if I can get in over $93.
FTSE 100
Call/Put = Call
Entry = 5800
Expiration = end of the month
The European markets were disrupted today because of the US closing. The European markets have been improving in the face of apparent break downs of reform talks. However, each time the EU and IMF reach an impasse with Greece, Spain or one of the other troubled countries they seem to get over it. The third quarter was better than everyone thought, in the US and in Europe and this should continue into the fourth quarter and the first part of next year. I believe that any weakness in the European markets should be taken as a buy signal.