Thursday, June 28, 2012

Choppy Conditions - Look for Range Setups

Some News in an otherwise quiet market, as we see ourselves ranging between 1300- 1350 last 2 weeks.Europe's bourses make solid gains ahead of EU summit
Energy displays strength for second straight session
Durable goods orders rise, weakness persists
Pending home sales prove stronger than many expected
Merkel rebuffs pleas for debt action on summit eve
 Lennar orders jump as housing recovery gathers steam

Agriculture has been finally breaking out, due to supply concerns, we could see trending markets.  Oil saw a one day breakdown below 80, which stopped out my USO etf, and I had positions in CHK and NBR both stopped out.  Pending the market reaction from EU summit I will try to establish a position back in the above names and also looking to get some GS.

I took some short ATVI options with Aug expiry - looks like the feared selling from its parent Vivendi may take longer than most pundits are thinking - and the transaction may not occur on market, which would depress shares given their 61% holdings.

I'm taking some fade-trades in the USDYEN - going long on today's weakness and looking for a continuation on the AUDUSD breakout of 1.01 if I get a retrace entry at 1.008.