Futures Magazine January 01, 2008
Cover Story
2008 Economic Outlook:Wicked Housing Market Spins Economy
Despite an increase of 4.9% in gross domestic product (GDP) in the third quarter, the negatives confronting the U.S. economy are many. First, the United States is facing a significant economic
Software Review
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OptionVue 5 Options Analysis
Price: $1495 one time purchase, $2195 for the Pro version. A 15-minute delayed feed (NetVue) is available for $500 annually. Streaming real-time data is available through E-Signal. Additional modules
Trading Techniques
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Using equity DNA to improve your portfolio
Just as computers forced the evolution of technical analysis tools, such as static simple, moving averages to sophisticated indicators that dynamically adjust to market conditions, technology is
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Failed flags can lead to E-mini success
A five-minute E-mini S&P 500 chart provides an incredible amount of information. But despite this massive flow of information, simple analysis of its price action is all that is needed to trade
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Using market breadth in trading systems
Most traditional trading models use historical price data series as the only data inputs for the rules that decide whether to buy or sell. However, you can build better systems by looking beyond this
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Smoother way to trade interest rate swaps
Electronic, or automated, trading of interest rate swaps has created an easily accessible method for controlling interest rate risk as well as for hedging and speculating on interest rate movements.
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Avoiding common trading pitfalls
When I began my journey to trading full-time, an opportunity to speak with an exceptionally successful investor presented itself. We talked about several aspects of trading, including the differences
Forex Trader
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FX Outlook for 2008
If 2007 provided any lessons, they were on the emergence of intermarket relationships. No matter what kind of trader you were, currency movements crossed your radar screen. The synchronicity of the
Futures 101
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To be or not to be
“A” is the event defined by the exchange listing the option. Examples include gold achieving a certain price per ounce, a corporation filing for bankruptcy, or the Federal Reserve cutting its target
Industry Trends
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Market index: Danger! Danger?
Sometimes, you just want to play a hunch, or pick a bottom, or otherwise break your rules. Or, if you’re just getting started and don’t have much to lose, you want to trade small — smaller even than
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Forbidden fruits
This past July, nearly 2,000 retail traders converged on the upscale Frankfurt suburb of Aschaffenberg, Germany. The draw was Trading Expo – an event formerly known as Futures Expo. One reason for
Markets
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Trendlines - BMF IPOs
The Brazilian Mercantile & Futures Exchange S.A. (BM&F) completed its initial public offering in November, and its shares leaped more than 20%, closing on the first day of trading at 24.40 reais; the
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Trendlines - Subprime bailout or washout
Media coverage of the subprime crisis often centers on confusing new securitized-debt obligations and how mechanisms to price them were so wrong that it led to massive losses for dealers. But behind
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Testing the limits of “resilience”
The year ahead will provide a test of the U.S. economy’s “resilience,” about which Federal Reserve officials have so often spoken. The Fed’s own flexibility, guts and credibility may also be tested.
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Tech talk: T-bond analysis
The U.S. Treasury bond market has been trading inversely to equities, which are being dragged lower by subprime lending issues and the related credit crunch. When the bonds rally as equity markets
Breaking News
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Reprieve for borrowers?
Media coverage of the subprime crisis often centers on confusing new securitized-debt obligations, and how mechanisms to price them were so wrong that it led to massive losses for dealers. But behind
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Forex min cap increases
Having a hard time getting your forex dealer on the phone? Dealers who cannot meet the new $5 million minimum capitalization requirements by Dec. 21 are scrambling to merge, repositioning themselves
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SEC/CFTC tie up a no go
Rarely do business leaders who must deal with regulators criticize those regulators so openly, but there is no getting around the lack of respect heaped on the Securities and Exchange Commission
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MTS Star continues to fade
MTS changed the way European governments manage their debt, by restructuring debt for countries one nation at a time, and then centralizing all of the liquidity on its central order book. The
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BM&F IPOs
The Brazilian Mercantile & Futures Exchange S.A. (BM&F) completed its initial public offering in November, and its shares leaped more than 20%, closing on the first day of trading at 24.40 reais; the
Editor's Note
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Don't get fooled again
For some reason, awhile ago I began receiving Mike Gasior’s e-newsletter and admit to reading it with some glee, enjoying his writing style and for the most part, although not always, agreeing with
Book Reviews
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Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game
Using a question and answer format, this book offers insight into the lives of a dozen traders, including background, trials and tribulations, trading methods and tools used, best and worst trades,
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Naked Option
If you are headed to the beach for a break this winter, or just want a quick read on the train, this is the book to take. Joe Kolman’s Naked Option is a fun read, steeped in Wall Street speak and
Market Analysis
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Is S&P bull back?
In the first week of December, the E-mini S&P had retraced 50% of its fall losses, almost 100 S&P points, putting traders in a holiday mood. “Growth is the key word,” says Hector Galvan, senior
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Bargain bin gas
Warmer weather, near-record storage levels and a lack of trading volume have dragged the natural gas market down, observes Dean Hazelcorn, trader for Coquest Inc. “After the Amaranth thing, you see a
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Euro peaks?
While the euro lost ground against the dollar in early December, few analysts think it is the start of a greater trend. The news from the Gulf Cooperation Council in early December could have been
Managed Money
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Whatever happened to diversification?
Never has a financial disaster unfolded in such an excruciatingly slow-motion fashion as the subprime debacle and resulting credit liquidity crisis. It was mid-July when several hedge funds either
Options Strategy
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Butterfly spread
The high cost of buying an outright call or put option on many markets makes ownership quite expensive and in most cases a bad bet unless held for a short period of time. The vertical spread is my
New For Traders
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New for Traders
Eurex launched Eurex SecLend, an electronic marketplace for secured securities lending and borrowing, based on the Eurex Repo markets. The product is designed to help banks and financial service
People
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Thain named CEO at Merrill Lynch
The Chicago Board Options Exchange (CBOE) elected 10 individuals to its board of directors: Robert Birnbaum, Janet Froetscher, R. Eden Martin, Roderick Palmore, David Fisher, Anthony McCormick, Kevin
Trader Profiles
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Weldon: Old school trading
The first time Gregory T. Weldon saw the Comex trading floor in 1983, he found himself in awe of the excitement and the physicality of the pit and of how much it reminded him of playing basketball
