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Stocks, Bonds and Commodities Trading Opportunities for 2010

Stock-Markets / Financial Markets 2010 Jan 05, 2010 - 12:37 AM GMT

By: Patrice_V_Johnson


Best Financial Markets Analysis ArticleWelcome to The J.E.D.I. Way.

In 2010, The J.E.D.I. Way will attempt to build its equity from one or more trades on the following: (1) Mini-Sized Dow Jones [YM, CBOT]) Futures Options, and/or (2) Gold (Gold 100 oz [GC, COMEX]) Futures Options, and/or (3) ETF's (specifically ticker symbols: SIJ, SRS, SKF, QID, GLL, IYJ, URE, UYG, QLD, and UGL)


First, The J.E.D.I. Way expects prices on the 2010 Mini-Sized Dow Jones Futures (the "Dow") to retrace 750 points or more in 2010 if prices on this index violate its 50 Day Moving Average to the downside and subsequently decline below 10,250. The Mini-Sized Dow Jones Futures (the "Dow") for March 2010 is currently 115 points away from violating its 50-Day Moving Average and approximately 365 points away from Dow 10,000. The long-term trend of the market increases the likelyhood of "the Dow" violating its 50-Day Moving Average. Otherwise, The J.E.D.I. Way expects prices on the 2010 Mini-Sized Dow Jones Futures to rise 800 points or more in 2010 if prices on this index can overcome resistance at around 10,600. The Mini-Sized Dow Jones Futures for March 2010 is approximately 235 points away from overcoming its upside resistance at 10,600. However, the long-term trend of the market decreases the likelyhood of the Mini-Sized Dow Futures violating its resitance area at 10,600.

One point on the Mini-Sized Dow Jones Futures Option contract gives $5.00. $3,750 ( or $750x5) if we capture at least 750 points of the downside move; $4,000 (or $800x5) if we capture at least 800 points of the upside move in just the options contracts for MAR 010, JUN 010, SEPT 010, and/or DEC 010.

GOLD (GOLD 100 oz [GC, COMEX]):

Ah, yes. Gold! Here's the deal with this commodity. First, the bull market in Gold started from a "Rounding Bottom" (a Technical Analysis term) nearly eight (8) years long, back in 2002. Second, it is hard to say when the bull market in Gold will be completed in the long term (greater than one year) because there is no precise measuring rule for "Rounding Bottom" patterns. Third, prices on this jewel (gold) experienced its first major pullback since 2002 in the year of 2008 that took the price of gold down 300 points to around $700 per ounce (oz). Prices for gold subsequently rose to nearly $1,200.00 per ounce since then as selling pressure gave in to buying pressure. Fourth, I will be bullish long-term on gold as long as it trades above its major resistance level at $1000 per ounce (oz). I will be bearish long-term on gold, if this commodity ever trades below its major moving average at $900 per ounce (oz).

The J.E.D.I. Way expects prices of 2010 Gold Futures (Gold 100 oz [GC, COMEX]) to rise 450 points or more in the year of 2010 to around $1,700 per ounce if prices on this commodity can violate its resistance level at around $1250 per oz. Gold 100 oz [GC, COMEX] is approximately 154 points away from violating its resistance at $1250 per ounce. Otherwise, The J.E.D.I. Way expects prices on 2010 Gold Futures to decline 50 points or more in 2010 if prices fall below $1000 per ounce or if prices decline below its major moving average at $900 per ounce. The long-term trend says to look out for a major pull back in gold possibly to the $1000 level before it may continue back up. But, gold just may continue to retreat below $1000 as it approaches this level due to the price action taking place in Crude Oil or due to the price action taking place in the U.S. Dollar.

One point on the Gold 100 oz [GC, COMEX] Option contract gives $100.00. $45,000 ( or $100x450) if we capture at least 450 points of the upside move; $5,000 (or $100x50) if we capture at least 50 points of the downside move in just the options contracts for FEB 010, APR 010, JUNE 010, AUG 010, OCT 010 and/or DEC 010.


The J.E.D.I. Way currently owns shares in ProShares Ultra Short Industrials (Ticker Symbol: SIJ), ProShares Ultra Short Real Estate (Ticker Symbol: SRS), ProShares Ultra Short Financials (Ticker Symbol: SKF), ProShares Ultra Short QQQ (Ticker Symbol: QID), and ProShares Ultra Short Gold (Ticker Symbol: GLL) in 100 lots each. The J.E.D.I. Way will hold these etf's which have a tendency to rise when "the Dow" declines until "the Dow" breaches its long-term resistance line at 14,175 as this breach would signify that the long-term (or major) trend has changed from down to up.

If "the Dow" breaches 14,175 at any time in 2010, The J.E.D.I. Way will close out its positions in the above mentioned etf's and then purchase 100 shares of each of the following: ProShares Ultra Industrials (Ticker Symbol: IYJ), ProShares Ultra Real Estate (Ticker Symbol: URE), ProShares Ultra Financials (Ticker Symbol: UYG), ProShares Ultra QQQ (Ticker Symbol: QLD), and ProShares Ultra Gold (Ticker Symbol: UGL) which have a tendency to rise when "the Dow" rises.

But The J.E.D.I. Way believes that the long-term trend decreases the likelyhood of 14,175 on the Dow let alone Dow 14,000. It is more probable that we will see Dow 10,000 before Dow 14,000 in 2010.

The J.E.D.I. Way expects its equity to increase by $1000 or more from its current portfolio of etf's, alone.

If the J.E.D.I. Way's 2010 goal is obtained, we could see equity increased in our account by $10,000 for the year of 2010. (Explanation: $4000 (min) from Dow Mini Futures Options plus $5000 (min) from Gold plus $1000 (min) from the above ETF's.


The J.E.D.I. Way's will be providing trading opportunities for the (1) The Mini-Sized Dow Jones Futures Options, (2) Gold 100 oz [GC, COMEX] Futures Options and/or (3) one or more of the ETF's listed above for 2010 in its next issue.

So keep an eye out for The J.E.D.I. Way's SETUP CRITERIA for The Mini-Sized Dow Jones Futures Options, Gold, and one or more of the above-listed ETF's.

Until next time...

Thanks for listening, and good luck with your trading.

Best Regards,

Patrice V. Johnson

E-mail : if you have any questions about this trade or any other questions or comments.

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Important Disclosure
Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.
Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.
In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.
For a complete understanding of the risks associated with trading, see our Risk Disclosure.

© 2010 Copyright Patrice V. Johnson - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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