Monday, February 19, 2007
Day Off!!
Its Presidents Day in the US today so the markets are closed.
You should have all received by now March's play. If it gets filled tomorrow it looks very nice (but don't they all)!!
Looking ahead to this week I hope it will be fairly quiet with some profit taking going on. There are very few earnings now being reported by companies and the only economic data of note is coming out on Wednesday.
On Wednesday, the Consumer Price Index from the Labor Department and minutes from the recent meeting of the Fed should offer further insight into the US economy's state. Those reports, coming on the heels of Fed Chairman Ben Bernanke's largely reassuring testimony to Congress this week, are expected to support the view that inflation is tame against a background of slowing economic growth. However if that CPI figure comes in stronger than expected then prepare for some down movement.
Also we will again be watching the oil price. On Friday it was nudging that $60 a barrel resistance mark. Any significant move through that barrier will spook the markets simply because higher oil prices means higher production costs for manufacturers which are passed on to the consumer in the form of higher prices....which means inflation!
Finally slightly off topic, I'm constantly asked whether you should always fully reinvest your options profits back into your account and my answer is no. Reinvest your profits until you have a $20,000 to $40,000 account but then start to take some of those profits off the table and invest in different asset classes.
For me that is property and gold. After a year of not doing much gold is slowly nudging its way back up. Its $670 an ounce and I'm informed by my contacts in the know that prices of $1600 to $2000 an ounce are easily achievable.
Anyway, why am I harping on about this. Well gold is also a barometer of how "safe" the serious investors feel. When they are happy go lucky gold is cheap. But when they start to get nervous in times of worry and unpredictability then gold goes up. We need to watch gold prices.
I won't every day be reporting on the price of gold but please do all keep an eye on the price yourself as you can learn how all these different market prices and data relate to each other.
Anyway lets see how we do tomorrow.
Until next time.
You should have all received by now March's play. If it gets filled tomorrow it looks very nice (but don't they all)!!
Looking ahead to this week I hope it will be fairly quiet with some profit taking going on. There are very few earnings now being reported by companies and the only economic data of note is coming out on Wednesday.
On Wednesday, the Consumer Price Index from the Labor Department and minutes from the recent meeting of the Fed should offer further insight into the US economy's state. Those reports, coming on the heels of Fed Chairman Ben Bernanke's largely reassuring testimony to Congress this week, are expected to support the view that inflation is tame against a background of slowing economic growth. However if that CPI figure comes in stronger than expected then prepare for some down movement.
Also we will again be watching the oil price. On Friday it was nudging that $60 a barrel resistance mark. Any significant move through that barrier will spook the markets simply because higher oil prices means higher production costs for manufacturers which are passed on to the consumer in the form of higher prices....which means inflation!
Finally slightly off topic, I'm constantly asked whether you should always fully reinvest your options profits back into your account and my answer is no. Reinvest your profits until you have a $20,000 to $40,000 account but then start to take some of those profits off the table and invest in different asset classes.
For me that is property and gold. After a year of not doing much gold is slowly nudging its way back up. Its $670 an ounce and I'm informed by my contacts in the know that prices of $1600 to $2000 an ounce are easily achievable.
Anyway, why am I harping on about this. Well gold is also a barometer of how "safe" the serious investors feel. When they are happy go lucky gold is cheap. But when they start to get nervous in times of worry and unpredictability then gold goes up. We need to watch gold prices.
I won't every day be reporting on the price of gold but please do all keep an eye on the price yourself as you can learn how all these different market prices and data relate to each other.
Anyway lets see how we do tomorrow.
Until next time.
# posted by Paul @ 8:17 AM 
