Running across my Bloomberg news, which I tend to do most Saturday mornings. The above words leaped off the screen at me – why – because they are not the sort of language patterns that have been used in financial markets for some time, let alone all in one sitting.
A cup of earl grey in hand, I dug deeper – stories below are all from Bloomberg:
- The pound had its biggest weekly gain versus the dollar in more than three years as U.K. manufacturing, services, and home-price data beat economist forecasts. Boosting confidence in the economy.
- German government bonds dropped for a third week as European Central Bank President Mario Draghi said the region’s economy should return to growth later this year. Damping demand for fixed-income assets.
- American employers took on more workers than forecast in May as the world’s largest economy weathered the impact of higher taxes and federal spending cuts.
What does all this mean for you?
During our weekly strategy session. We were looking to our positions, and more so, what new ones were likely to be in the wings for the next few sessions. Following Friday’s crucial US data. The data stacked up and with a 200 plus point session, there should be some ooompf behind the week ahead.
Current Trading Opportunities
Positions such as Disney – the entertainment giant should continue to run well, with a summer of increased optimism ahead, margins boosted by a lift in admission fees to their theme parks and a healthy movie production line. Equally TBT, a calendar spread is also in great shape.
The above two holdings reflect part of our increased exposure toward the US market. Don’t get me wrong, we are carrying a slew of Aussie positions too, many of which should be at profit taking levels, next week.
My point is that there is a world of opportunity out there and by being open to it – taking the trades and recommendations, you are likely to be in a better position to profit.
Outside of stocks, we have traps set for Corn – why? Because it is shaping up for another seasonal move higher, based on the weather patterns and plant levels currently in play in the US, as well as the continued increase in consumption, outside of the human food chain (ethanol and cattle feed being two examples).
Very shortly for our commodities clients, we will be rolling out two new rooms, specialising in the Metals markets and the Agriculturals, with new strategies designed to help the action takers get on board.
And for those still on the sidelines
Well, for those on the sidelines, all of this really means very little, and sadly this is a position too many everyday Aussies are finding themselves. Caught in the headlights, scared to make a move – for example, instead of making a fist full of dollars from the opportunities out there, they are instead either paying their mortgage down or holding cash – neither of which are particularly lucrative, given the current low level of interest rates. Cash is currently at 2.75% – you can pick up double that on a yield play in a top 20 stock.
With less than 100 days to go until the election, some are choosing to wait until that is past – the reality of that decision is 100 days of missed opportunity! Sure, there are always plenty of trades out there – and more will always come along, but those 100 days of opportunity are going to be gone and never given back.
So here is a gift for you
Consider a well-known Aussie blue chip stock that is currently trading with a dividend yield of 6%. It has been hammered off its recent highs and typically enjoys a strong run up ahead of its dividend, which is due in a couple of months. While I am not a fan of the underlying business, there is opportunity to profit there and why not have a crack at it – after all better in your bank account earning 2.75% than not, right?
How about another gift – how you would you like to share $1000 with a mate?
In part, this is your reward and opportunity for getting this far through my article. So here’s the deal. Refer a friend or friends to AIE and once they have successfully enrolled in our Options Made Easy or Futures Made Simple programs, including opening and funding their account with us, we will credit $500 to your AIE Halifax trading account. All you need to do is complete this form and we will do the rest.
