Why the 1100# should not be ignored
February 18, 2010
by: Matthew Bradbard
Find two charts below; the top chart is March S&P futures and the second chart is April gold futures. As long as 1100 acts as support in gold we suggest being lightly long gold futures and have positioned clients in August call spreads. As for the S&P 1100 should act as resistance and as long as prices do not close above that level we suggest being short. Our favored play here with clients is to buy June 1000 ES puts and sit on them expecting these options to go intrinsic between now and Memorial day.
S&P, please click to enlarge
Gold, please click to enlarge
Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results.
Tags: calls, futures, gold, matthew bradbard, MB Wealth, puts, S&P, spreads
