Watching Paint Dry

Is More Exciting

Just wanted to check in with an update on the three futures discussed in the past. No there are no short term “Footprint” or “Depth of Market” screenshots; they’re not as important to position traders to the exclusion of determining initial entry points. Let’s leave that to others, you know the day, scalp and swing traders who today are taking No-Doz so as not to fall asleep at their multiple synched screens.

I’ve got a better way to avoid today’s boredom. After posting this article it’s time to go rake some leftover leaves, plant grass and watch it grow. Ah, the excitement of May is in full bloom. Watch, between now and the end of the trading day that will change. I’ll take my chances besides doing “honey-do” tasks for the better half allows me to do what I like best; this.

It also provides the time to structure and strategize where The Ticker EDU is heading but first a word of thanks to you; our early adopters and those who have told us what they want to see. Across the board we’ve had a simple recurring request; “show us the tools you use to make your trading and investment decisions” and “teach us how to use them”. OK, you’re on but given it took me more than a week to better learn how to use Camtasia, let’s shoot to start doing that next week. Stay tuned and again thank you for the advice, it’s important to listen to your market.

So let’s take a look at what we’re currently involved in. Remember, as a position trader we’re more interested in longer term trends. With respect to futures, we use many types of financial instruments. One course we’ll definitely offer will concentrate on futures options. My history in trading options goes back to 1973. My Dad had a client holding 300 shares os US Steel and he wanted to sell three covered call contracts. in 1973 we didn’t have the luxury of functional listed option exchanges. We did have US Steel based in Pittsburgh so I contacted the Treasurer who took the buy side of the transaction. It made sense to everyone as if exercised the 300 shares would just be retired. In this case the options expired worthless. Back to the discussion of current positions.

Japanese Yen

Look at that, a fancy longer term 10-year chart that’s available for free on BarChart. As I illustrate the tools used, I’ll do my best to stay on the “free” side but there will be times when it’s necessary to step up and spend some money. We’re using a couple indicators on this chart that have been standards for years; Bollinger Bands and the Volume Profile histogram. Time does not let me get more in depth into my analysis at this time; I have leaves to rake and grass to plant. Besides my reasons for being long the Yen versus the Dollar at this time are due more so to the changing of the guard at the BoJ. The minutes of the last meeting were released last night and we added to our position as most of the “street” interpreted the release as a continuation of the dovish policy. You can get access to the same report as I did on FXStreet; it’s available for a monthly fee right on your overpriced iPhone.

Carbon Emissions

Talk about a channel; this one’s better than the one I’ve heard everyone talking about the S&P being in but this one is better; there’s a reason for the price of this future to go higher. It might not happen until purchasing things of this nature are required but I’ll take that chance especially at the bottom of the channel’s range. When embarking on the true educational side of The Ticker EDU it’s guaranteed I’ll spend much more time on this commodity. Hopefully there will be a little more credible data to work with as well but that takes time; just like learning how to do anything takes time.

Sugar

Been a nice run here but everything comes to an end, right? I don’t know. Admit it, uncertainty has its limitations but tools exist to allow traders to “play both sides of the coin”. With 5+ points in this trade, knowing that seldom has there been two years in a row of a bad sugar crop it’s time to hedge. With that in mind long positions have been opened in put and call options; if it runs higher we’ll participate in the upside of the 27.5 call strike. If, as believed and the run is over, the 23.5 put strike option will do the same. Since protecting your profit is a smart thing to do, the put option position is twice the size of the size of the call option position. There’s a lot to learn here and a lot to teach. Time to figure out the best way to do that; any suggestions let me know.

Lots going on here at “The Ticker EDU”; what do you think? The first segment of “Trading Psychology” is “in the books”. Saturdays seem to me to be the best day to provide informative commentary of this nature; hope it works for you. There’s much more to come from The Ticker EDU. Stay tuned and as always, let me know what you want to learn; I listen.

Hope you enjoyed this post. I’m just a young 68 years old; my Dad became a broker when I was 13. It’s time for me to ‘give back’ to all of you what’s in my head. It’s not always pretty but it’s based on history . . . and history, unchecked, repeats itself.

Everyone learns at their own pace. If you pick everything up the first time through, great but if not email me at david@thetickeredu.com so we can further help. Thanks again go out to Danny www.mrtopstep.com . . . check him out; he’s worth your “click” and thanks to all of you who have adopted what is being created and presented; we’re humbled by the response and referrals. Again, let me know what you want to learn, I’m all ears.

How about a little of The Who and Tommy . . . you know, the Pinball Wizard . . . I have a story for that one as well but for now just enjoy.