Thursday, September 24, 2009

Be Careful: G20 Meeting to Have Major Effects On Currencies and Stocks; How to Profit

The G20 meeting, which we have written so much about, starts tonight with a dinner in Pittsburgh. The other 19 nations are extremely upset at the collapse of the U.S. Dollar. The situation is truly explosive and the meeting could well have major effects on the markets, currencies, and gold.

The likely outcome is either all hell breaks loose if they can't reach an agreement, or that the U.S. Dollar is supported, at least temporarily. The latter seems to be favoured as yesterday the Fed announced they will be doing no more POMOs.

The likely outcome if a agreement is reached is that the U.S. Dollar will go up, gold will go down, stocks will fall.

How to profit from this in a safe way. Very simple, with our favorite method, straddles and strangles. You are protected with either direction the markets moves.

Below are some straddles for GLD, UUP, IWM, XLF.

(please click to enlarge)

You will have more of these during the day, please stay tuned. Straddles were computed with our StraddlesCalc V2 tool.

If you choose not to buy straddles, please make sure you have some protection.

Note: You may receive technical analysis and alerts of these ETFs, sent automatically to you by entering the symbols in the Technical Trend Analysis Tool, (powered by INO).

Please do your own due dilligence.

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