Saturday, December 31, 2011

End of Year

As the year ends we will be looking back at what the market has done in 2011. The overall markets closed near no gain for the year , The Dow , NASDAQ and S&P traded nearly even with no growth for the entire year 2011. The market has overall been volatile for the year and we saw Gold and Silver drop considerably towards the end of the year. Yesterday we saw a small rally from Gold closing near $1600 and Silver getting back to $27 oz after Gold touched $1500 and Silver $25 this year ,we sent our members updates on why we felt Gold and Silver would pull back in a major correction and allowed members to make money on PUTS and also shorting SLV ETF.

Gold and Silver 2012

We strongly believe that Gold and Silver will offer a great opportunity for our members in 2012. Gold could likely have a correction as low as $1200 and Silver could see $20 an oz. This will be a great opportunity for those that are not invested in Gold or Silver. Precious metals are the only tangible assets that in some time could easily double or triple in investment. We are firm believers that fiat currencies will be hit hard in the coming year. In the next three to five years we expect heavy inflation in attempts to prop up fiat currencies around the world. China will be the next country to be hit hard and will devalue its currency even more in order to keep the cheap imports and export trading and we will have a huge currency war world wide. Interest rates will reach close to 0 and many will flock back to these metals. The precious metal shake out will allow members to add in slow accumulation and protect there wealth . It is extremely important in the next year to preserve wealth in tangible assets and we believe this will be a great year for members to add gold and silver to there portfolio at fire sale prices. We strongly recommend doing research on Gold/Silver brokers, a company that we recommend and use is :

Micro Caps , Small Cap and OTC pink sheet stocks

Micro Caps and pinksheet stocks are risky forms of investments, but when traded with research could pose a very lucrative profit. These stocks usually trading under $5 per share sometimes as low as .0001 tend to run on there own. We have had great calls in the last year. Stocks like SFIO and LDPP gave members opportunity to make close to 2000% profits on each. Buy and Holds like HLLXF , PELE and USSIF gave members opportunity to make 300% on each. Our Flash email alerts are given to members via Radiosilentplay Twitter and also via email and skype chat. Our weekly updates and blog give members access to the best in debt research on OTC investment opportunities. We recommend that investors use funds they can afford to lose. Our main objective is to give members solid entry points and minimize loss. Micro Cap stocks can be tricky at best but if group maintains solid win to loss ratio these investments can be a great addition to investment portfolio

(London Pacific) alerted Aug 2011 at .0026 hits .04 Dec 30 over 2000%

Put and Call Options

With such a volatile market we have had opportunity to make money with buying Put Options on Financials like BAC Bank of America over 100% from our call st $6.91 hit a low of $4.92 , SPY S&P ETF calls 120-125 over 100%  our IBM puts at 194 hit over 700%  dropped as low as 178. The bottom line is there is profits for stocks both ways , and we will give our best ideas to members on stocks we believe could be great opportunity to buy PUTS or Options. These investments pose risk as well but if group could minimize loss and enter a trade at best entry , we could see great profits for 2012


Another investment Ideas are currencies, with the Global economy in fears of recession, investors look for safe havens, usually the U.S Dollar is looked upon as a safe haven currency , with that said we usually see the Dollar Index do well when the stock market is down. Commodities usually go down with the strong dollar, we mentioned to members to keep an eye on the UUP ( Power Shares US Dollar). The stock market usually trades inversely to the Dollar and when we see a big spike in the dollar we recommend in watching currencies in the Emerging markets. We recommended to members to buy Singapore Dollar , Canadian Dollar and Mexican Peso on dollar spikes , this year we could have opportunity to make trades and profit on the currency volatility

USD/CAD Jolts Higher When Stocks Plunge

For instance, pairing the U.S. dollar with the Canadian dollar in the Forex market (USD/CAD) can protect you from a market like this.
The USD/CAD pair generally trades in the opposite direction of stocks anyway, but it really “lights up” when stocks take a hug dip
When Stocks Start to Drop...Buy USD/CAD

Looking at this chart we notice when the S&P 500 drops, the USD/CAD currency pair rallies.
So buying the USD/CAD in the Forex market is a great way to profit when stocks are diving. Those profits can provide a nice cushion for the rest of your portfolio.
Why does USD/CAD respond so nicely when stocks fall?
First, as a commodity currency, the Canadian dollar is very sensitive to economic conditions. So as stocks fall, the Canadian dollar falls. Secondly, the U.S. dollar tends to rally when markets fall apart, because traders run to the world’s reserve currency.Thats why we like to follow the UUP (Power Shares US Dollar Index) we can get a sense of what the stock market does when we see this ETF do well , when it does well buying the USD/CAD and USD/MXN poses a significant opportunity
You can play both of these outcomes by buying the USD/CAD.
You see, Canada is a huge oil exporter. When economies are growing, countries demand more oil to fuel that growth. But when economies contract and stocks tank, countries don’t need as much oil. As a major oil exporter, that hurts Canada’s economy, and the Canadian dollar. That makes the Canadian dollar very sensitive to economic fears.
Right now, we have fears that the European debt crisis will spread to the U.S. and affect our economy even more. So when those fears hurt stocks, it also makes the Canadian dollar dive, and the U.S. dollar rally.
Buying the USD/CAD is the easiest way to profit off that.

USD/MXN (Mexican Peso)

The next pair is extremely responsive to sell-offs in the stock market.
In fact many times, it can “more than make up” for slide-offs in stocks because of the very exaggerated, quick moves that happen in USD/MXN (U.S. dollar vs. the Mexican peso) during those times. Check it out below.
Make Huge Gains when Stocks “Pay the Price”

Mexico exports a lot of oil too, particularly to the United States. So this makes the peso another very “economically sensitive” currency.
Why does USD/MXN move more than USD/CAD? Because Canada is considered a developed nation while Mexico is still considered an emerging market.
So when stocks start to pullback, traders grab their money and run from riskier emerging markets, much more so than developed nations. It makes the money-flow movements more extreme.
Therefore, if you’re comfortable with the more volatile, extreme moves of an exotic currency, then buying USD/MXN can be a great way to hedge your stock portfolio.
If you’re looking for a tamer version of this trade, buy USD/CAD when stocks fall.

Sunday, December 18, 2011

Options to watch this week Dec 18-23

Call Options to watch are stocks short term with high liquidity:

SPY (SPDR S&P 500) 121.58 This stock could serve as a day trade with support at $120 we could see a rally before Christmas or end of the year. So with that said we could see SPY at $120 with strong support at this level. Buying SPY calls  120 range for a swing trade could be a nice trade, always ensure to set a stop loss in case the stock drops lower than 30% but this could bode well in a swing trade 3-5 days.

USO (United States Oil) 36.30 This is an Oil ETF and with the dollar drop we could see this drop as well down to 34-35 level we could watch this to drop to 34.00- 35 and we could see a nice bounce, this is a trade of spot crude oil , this will be short term as we believe long term Oil can drop lower but for now a drop to 34-35 is a great buying opportunity for a bounce trade.

Stocks at or near 52 week high to look for puts:

MCD (McDonalds Corp) 97.49 we gave this stock at 97.60 range we recommended for Put Options we believe that this stock could see $95 range by Jan 21 for a swing trade, our last recommendation of Puts on a stock at or near 52 week high was IBM at 194 range we alerted Put Options for Dec 17 strike 190 @ .84 and the Options reached 7.40 , IBM is now trading 183.57 this brought close to 700% in profits

Stocks that could see a bounce for calls:

BBY (Best Buy) 23.20 This retail giant has dropped close to 18% on less than anticipated earnings, with a strong support at $22 we could see this bounce , calls for $25 range could be a great risk reward for Jan 21 , we could see a report of good earnings or news after holiday sales and Super Bowl LED , LCD entertainment sales

 Call Options to buy on pull backs

AMZN (Amazon) 181.55
we like to add on a pull back to 175 -177 range and we could see a nice bounce to 20 day moving average 190 range , but staying disciplined only buy if we see a pull back to 175-177 range and holds. We have a uptrend on the weekly chart , still could serve as a solid swing trade: