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Trading > Netto's Numbers

Enigmatic Equities Spend Day in Trading Range, Metals/Energies/Ags Come to Life

John Netto | Thu, 12/11/2008 - 1:48pm | Energies, ES, EURUSD, Gamma Trading, gold, Inflection Points, metals, USDJPY |  3 comments

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John Netto – Chief Investment Strategist – NetBlack Capital
Wednesday, December 10, 2008 – 6:29 PM –
       My last post 48 hours ago touched upon my concern for the equity
indexes to maintain their robust tone as some of the underlying
metrics in Monday's rally raised some eyebrows. Tuesday's pullback in
the global equity indexes, flat lining action in a number of major
currency crosses, and attempt by the metals, ags, and energies to
probe lower seemed to corroborate my trepidation.
       Wednesday's price action in the metals, particularly gold, and
ability to see crude fend off bad inventory data are encouraging signs
for the sustainability of a short-term, tradable bottom. Like I
mentioned in Sunday night's write-up, a move to 800 in gold would be a
great spot for me to get delta neutral and play a move back down to
the 760 area. It's a trade that I worked into today and was never on
the right side but the fact that I am now fully short against my 725
calls places me in the market at a pretty low risk spot to play a move
back lower. On Yorba TV Tuesday, (see interview at
(http://www.yorba.tv/archive-2008-12-118-2-start.htm ) I gave a
synopsis of what has taken place a over the past few months and how I
see things playing out in terms of working my gold position. For now,
we are maintaining a nimble posture between now and the end of the
year and would really prefer a market sell down as it does wonders to
the volatility.
       Looking for tomorrow and the free all day webinar being hosted by IB
Times (see webinar schedule on IB Times or www.osoktrading.com), I will be seeing if the ES
can hold onto the 885 level and if the USDJPY will hold 9212. 13025 on
the Euro give me the insight on the overall strength of the dollar so
this will be an interesting Thursday.

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