Trade Strategy

DS Trading: Position Update (DTO, SDS, VXX)

Jun 29th, 2010 | By Rob

Positions currently held at DS Financial are SDS, DTO, and VXX. Refer to our DS Trading Ledger, a new page where you can track the results of calls we’ve made, to see the entry points on these three positions. As of Monday’s close our positions are as follows:



Trade Flash: Long VIX, Short S&P 500, Short Crude Oil

Jun 1st, 2010 | By Rob
Trade Flash: Long VIX, Short S&P 500, Short Crude Oil

There are several positions we had been waiting for and on Friday the limits were hit and trades were placed. We are exceedingly confident about these three trades, and we feel that it’s worth our readers’ time to take a peak at where we’re putting our cash. This “trade flash” will target those three trades.



Is Greek Contagion Crushing Crude Oil?

May 6th, 2010 | By Rob
Is Greek Contagion Crushing Crude Oil?

Crude Oil has reluctantly played follow the leader with U.S. equities for much of the past 12 months. More recently, fundamentals took a back seat to short term speculation as risk takers drove the price of hot button commodities up with stocks. Crude has been in a holding range between $80 and $87/barrel for all of March and April, but in the past two trading sessions NYMEX WTI crude plunged directly from the top to the bottom of that range.



The VIX About to Pop!

Mar 23rd, 2010 | By Rob
The VIX About to Pop!

The VIX is the CBOE (Chicago Board Options Exchange) metric of volatility regarding S&P 500 futures (SPX).Currently, the VIX is trading near it’s lowest levels since 2008, allowing bear traders and bull hedgers an attractive entry point for some risk or insurance in their portfolios.



U.S. Treasury Insolvency: “It’s Greek to Us”

Feb 11th, 2010 | By Rob
U.S. Treasury Insolvency: “It’s Greek to Us”

“That will never happen to this country.” – Timothy Geitner in response to suggestions that the U.S. Treasury may one day lose its Aaa credit rating. Perhaps inspired by Niall Ferguson’s dramatic Financial Times piece, “A Greek Crisis Coming To America“, we see today as a prime opportunity to recap our short U.S. Long Term
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Playing With Financials, Not Fire, in 2010

Feb 4th, 2010 | By Rob
Playing With Financials, Not Fire, in 2010

The last week has seen 100 day moving averages torn apart, surprises from economic data reports, and one of the most notable sell-offs for stocks in some time. Recently, many home gamers and pros alike, have put financials out of their purview. The erratic and effectively risky nature of these names are less than inviting, but
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Crude Oil: The Path to $70

Jan 20th, 2010 | By Rob
Crude Oil: The Path to $70

Supporting our highest conviction trade yet, we now see fundamentals, sentiment, and technicals aligned for a significant correction in Crude Oil prices. While DS partners already hold a position in DTO, we are moving to formally call a short term WTI Crude Continuous Spot price target at $70. Below we explain in detail our thesis
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Weekly Spectrum: Short Week, Housing & Earnings Focus

Jan 18th, 2010 | By Rob

The January 18 – 22 business week will begin one day late, due to Martin Luther King Jr holiday, leaving only Tuesday to Friday for market action to be staged. The most notable economic data releases will be the Housing Market Index (HMI) and Housing Starts numbers; while Treasury International Capital data, the Producer's Price
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Trading Notes: Crude Oil, Consumer, Financials

Jan 15th, 2010 | By Rob

Crude Oil The oil issue has been speculative to this point. It's hard to argue against 90 dollar oil when we saw 145 in July 2008, but the fundamentals aren't congruent with the price growth we've seen and this trader finds it easier to argue FOR $60/ barrel oil. Crude supply in the U.S. remains
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Alcoa Miss Spells Trouble for Q4 Earnings

Jan 12th, 2010 | By Rob

Earnings season officially began, as the first member of the S&P 500 and Dow Jones Industrial Average to grab Q4 2009 earnings headlines, Alcoa (AA), reported a net profit of $0.01 EPS on Monday, January 11. The shortfall to the $0.06 EPS market consensus was explained by CEO Klaus Kleinfield by the unexpected weakness in the dollar,
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