Watching and waiting fore breaks in the market. On the DJI. Looking for a close on the daily chart below 7500. And a break below 1.2550 on the eur/usd to target 1.23. I may enter short on a support bounce to the 1.27 level to target. 1.23
Given the evidence from the Daily and Weekly charts, 1.23 should be formidable support. I may look to take a covered call position at 1.23. With my short call @ 1.2550 to expire in two weeks. and my long spot at 1.23. This is looking ahead in the future. However, a break below 7500 on equities could cause a landslide and see the eur/usd quickly break through the 1.23 level and go into free fall mode. I think the covered call position would be appropriate as it would enable me to cautiously go long at the support level and receive about a $1,000 dollar premium which I could use as a 100 pip stop loss at 1.22. If there were a close on the daily chart below 1.23, most likely the level is broken and I would reverse my spot position going short and let my call expire worthless. However, if the market does indeed bounce from 1.23 support, and reach 1.30 in two weeks I will collect $3,500 from the position. Therefore, worst case scenario, I break even and then get to go short in the direction of the trend, or there is a bounce and I net $3,500.
Given the evidence from the Daily and Weekly charts, 1.23 should be formidable support. I may look to take a covered call position at 1.23. With my short call @ 1.2550 to expire in two weeks. and my long spot at 1.23. This is looking ahead in the future. However, a break below 7500 on equities could cause a landslide and see the eur/usd quickly break through the 1.23 level and go into free fall mode. I think the covered call position would be appropriate as it would enable me to cautiously go long at the support level and receive about a $1,000 dollar premium which I could use as a 100 pip stop loss at 1.22. If there were a close on the daily chart below 1.23, most likely the level is broken and I would reverse my spot position going short and let my call expire worthless. However, if the market does indeed bounce from 1.23 support, and reach 1.30 in two weeks I will collect $3,500 from the position. Therefore, worst case scenario, I break even and then get to go short in the direction of the trend, or there is a bounce and I net $3,500.
) if all is damn doomed.
