Futures (Cedar Falls, IA) articles from May 2009

Futures (Cedar Falls, IA) archives from May 2009

ISE seeks reg reform.(CALL FOR CHANGE)
May 1, 2009... Questioning the effectiveness of the regulatory structure in the United States is nothing new, particularly in the equity options industry, which faces a much more burdensome structure. So on March 25, the International Securities Exchange...

Fed in market for treasuries.(SHOPPING SPREE)
May 1, 2009... With short-term interest rates set at zero to 0.25%, one of the few ways left for the Federal Reserve Bank to affect U.S. interest rates is through direct purchases of Treasuries. After hinting for several months, the Fed pulled the trigger on...

Merrill to pay $39.8 mil.(MORE REFCO FALLOUT)
May 1, 2009... The fallout from the collapse of commodity brokerage Refco continued when the Financial Industry Regulatory Authority (Finra) ordered Merrill Lynch to pay $39.8 million ($30.6 million, plus 9% interest per year from Nov. 5, 2005) to the Masonic...

Traders face serious jail time.(UNENJOYMENT)
May 1, 2009... Two Chicago Board of Trade floor traders were indicted in April on Federal fraud charges for allegedly engaging in noncompetitive trades that resulted in profits exceeding $2 million while depriving customers of one of the traders the...

Jones to head NYSE Liffe.(Trading Places)
May 1, 2009... Garry Jones was promoted to group executive vice president & head of global derivatives at NYSE Liffe, replacing Hugh Freedberg, who was promoted to chairman. Previously Jones was executive director of business development and strategy. "I hope...

Why silver may outshine gold.(Market Strategy)
May 1, 2009... Silver is currently underpriced relative to gold and may offer the best opportunity for long-term profit in the metals sector. While both gold and silver are safe-haven investments, particularly as a hedge against the longer-term risk of...

The search for recovery.(Forex Trader)
May 1, 2009... Despite the well-defined and ongoing credit crisis, the financial contraction triggered by the Lehman collapse was sudden, severe, worldwide and went beyond expectations, despite being telegraphed in advance. The Bloomberg Financial Conditions...

Can metals be strong in good times and bad? The current economic crisis has affected the metals sector in two distinct ways: Gold has surged due to its safe haven status but base metals have plunged due to the global recession. All metals stand to gain as conditions improve and as a result of government interventions around the world.(MARKETS)(Cover story)
May 1, 2009... [ILLUSTRATION OMITTED] By the end of 2008, the world of metals (both precious and base metals) experienced one of its most volatile years ever and investors and speculators are wondering what to do going forward. Fortunately, the future...

The put and call comfort zone: the upper and lower breakeven prices computed for strangles can be useful to traders in the underlying as well as in options. We compute breakeven using the LLP option pricing model and examine what that implies for the S&P 500.(TRADING TECHNIQUES)
May 1, 2009... Market prices for options are rigidly structured by computer models. An option trader may have opinions on the proper buying or selling price, but ultimately the price will be placed close to an option price curve that is the result of...

Day-trading silver with technicals: in these volatile trading times, traders need to rely on quick wits and pinpoint executions. For these types of trades, sometimes the best tools are straightforward technical indicators, which are quick on the fly and offer clear direction.(TRADING TECHNIQUES)
May 1, 2009... We are currently facing some of the most volatile market conditions that we have ever seen. Uncertainty in the marketplace creates this volatility and makes it difficult for the average trader to participate. Most traders find themselves...

How yield curves signal metal moves: traders must recognize how the credit and commodities markets interact with regard to prevailing risk appetites. The yield curve can tell us a lot about metals.(TRADING TECHNIQUES)
May 1, 2009... Yield curves in U.S. financial markets have long served as an invaluable guide to the bond market's prevailing assessment of the cost of money, and more important, as an effective predictor of the future performance of economic growth and...

CDS: still the object of desire: mortgage-backed derivatives may have blown up, but credit default swaps are going strong, for now. Protocols exist for cash settlement of CDS contracts and exchanges hope to earn up to $140 million per year by offering central clearing for CDSs. However, others believe tighter regulatory controls are needed.(TRADE TRENDS)
May 1, 2009... "There is a growing recognition that the dispersion of credit risk by banks to a broader and more diverse group of investors, rather than warehousing such risk on their balance sheets, has helped make the banking and overall financial system...

Molinero: the sound of markets.(Trader Profile)
May 1, 2009... Rafael Molinero must have driven the adults crazy. "I always liked the 'why' questions," he says. "Why is the sky blue? Why does soap work?' Stuff like that." Today, those questions are along the lines of "Can the same algorithms that...

Keep your options open: for a beginning trader, options are a great way to manage risk. But before venturing into options trading, you must first understand the way the market works and the mechanics of options.(FUTURES 101)
May 1, 2009... Using options and their ability to establish positions with a known risk is a good idea, but there is a catch-22. Beginner and less capitalized traders can benefit from options, but understanding them requires a more in-depth knowledge of...

Nasdaq on fire.(Hot Commodities)
May 1, 2009... Among many analysts the Nasdaq 100 is the best indicator for equities among all the indexes. That has been true in the upward correction that began on March 10. The NQ never took out its November lows and has moved into positive territory for...

Crude climb?(Hot Commodities)
May 1, 2009... Phil Flynn, senior market analyst at Alaron, says that despite bearish supply and demand fundamentals, crude oil is still poised to move higher in May. He says the Federal Reserve's quantitative easing program has influenced the price of crude....

Contract dates.(Dateline)
May 1, 2009... 3 LTD: BM&F Alcohol OF 4 LTD: CBOT Cash Settled Ethanol F, Ethanol F 5 LTD: ICE Cotton F 6 LTD: OSE Nikkei 225 O, Nikkei 300 O 7 LTD: ICE U.S. Dollar Index OF, Euro Index OF, Jun Coffee OF, FCOJ-A F, Jun Robusta Coffee OF,...

Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets.
May 1, 2009... Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets By Ashraf Laidi Wiley, 278 pages, $70. [ILLUSTRATION OMITTED] Ashraf Laidi is a highly regarded currency...

The Only Guide to Alternative Investments You'll Ever Need.
May 1, 2009... The Only Guide to Alternative Investments You'll Ever Need By Larry E. Swedroe, Jared Kizer Bloomberg Press $29.95, 288 pages [ILLUSTRATION OMITTED] Irony exists in the title and the content of this book. Had an...