Matt McKinney's Options & Futures Trading Strategies Blog

Direct: 312-277-0115  |  mmckinney@zaner.com

Matt Mckinney's Options & Futures Trading Strategies Blog is a blog dedicated to bringing updates, news and commentary on futures and commdity markets.

This blog is brought to you by Zaner Group, one of America's oldest family-owned and operated futures and forex brokers.  Zaner provides a wide range of services from research and recommendations to the execution of all your futures needs.

We invite you to join the thousands of other Zaner clients that have enjoyed our services.  Click here to learn how to open an account with Zaner.

  Subscribe to my FREE Options Play Update Newsletter

Futures, options and forex trading is speculative in nature and involves substantial risk of loss.  These recommendations are a solicitation for entering into derivatives transactions.  All known news and events have already been factored into the price of the underlying derivatives discussed.  From time to time persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives.


OPTIONS PLAY: 3 different time frames in the Euro Currency

Posted on 5/17/2015 12:14:45 PM by: Matt McKinney, Market Strategist @ Zaner. 312-277-0115.

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

 

OPTIONS PLAY: 3 different time frames in the Euro Currency

Euro Currency futures have shown a tremendous ability to rally in the face of uncertainty in the Euro Zone

 

My Technical opinion on all 3 time frames, the daily, weekly, and monthly. 

On the charts below I have placed my favorite technical indicators. They are the 9 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, blue line). I have also added the Bollinger Bands (BB's, light blue shaded area) and Candlesticks (red and green bars), on these 3 charts. Each time frame tells a somewhat different story. However, I've been taught to seek out the similarities, not the differences.

Technically, in looking at my favorite and my most reliable technical indicators, I see June Euro Currency Futures in what I have coined as a "PRINCIPAL-TREND" up on the daily chart below. In order to achieve a "PRINCIPAL-TREND" up here is what I have to see. First, I have to see a cross of the 9 day SMA (red line) up and over the 20 day SMA (green line). The second thing I need is for both of the indicators to point up on higher angles as the 9 is above the 20. Then finally, the market itself must trade above the 9 day SMA and then the 9 becomes the first area of support in a "PRINCIPAL-TREND" up market. If you look at the daily chart below you will see that all of these qualifiers are in place.

 I figured this out by placing my favorite indicators on the charts and studying them which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 70-80% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I'm using it then maybe my readers should check it out. Yes? 

 

June daily chart

Technically, on the weekly chart below we have a change in trend as the market was in a "PRINCIPAL-TREND" down. However, over the last couple of weeks, as each bar on this chart represents one week of trading, the market has rallied higher through two critical areas of resistance. First, up and through the 9 period SMA (red line) and then through the second area the 20 day SMA (green line). So the bottom line here is that we have a market that could be changing from a "PRICIPAL-TREND" down to an upward trend or a sideways trend. Anyway you slice it, according to my favorite indicators we have a change in trend. The market could go on to rally up to the next area of resistance at the 50 day SMA (blue line).

 

Weekly Euro Currency chart

 

Technically, in looking at my favorite and my most reliable technical indicators, I see June Euro Currency Futures in what I have coined as a "PRINCIPAL-TREND" down on the monthly chart below. In order to achieve a "PRINCIPAL-TREND" down here is what I have to see. First, I have to see a cross of the 9 day SMA (red line) down and under the 20 day SMA (green line). The second thing I need is for both of the indicators to point down on lower angles as the 9 is below the 20. Then finally, the market itself must trade below the 9 day SMA and then the 9 becomes the first area of resistance in a "PRINCIPAL-TREND" down market. If you look at the monthly chart below you will see that all of these qualifiers are in place. Finally, if this is a healthy long term bear market then it should rally up to the resistance of the 9 period SMA, hold, and go on to make new lows.

 

Monthly Euro Currency chart

 

OPTION PLAY:

For exact details on strategies in this Euro options trade, types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com. In addition, I am by no means "married" to the silver market. I like to make trade recommendations to my clients in the direction of the existing trend whether the market be the precious metals, energies, financials, softs, grains and more.

 

 

FREE QUOTE- "Success is measured by your discipline and your inner peace." -Iron Mike Ditka

 

 

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

 

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS.


Older posts

Matt's Links

 

Recent Posts