http://www.options-trading-education.com/4437/united-states-stock-advances-lead-declines/ - United States Stock Advances Lead Declines -
United States stock advances lead declines recently by roughly four to three.
The broad range of United States stocks, as measured by the S&P 500 index, markets have had their best first quarter in 14 years.
A positive approach in trading options on the US economic recovery has worked for many options traders.
The United States manufacturing sector continues to beat expectations and the real estate market may have finally hit bottom.
Meanwhile, gold and copper mining company, Freeport-McMorRan Copper & Gold Inc. - FCX - rose a couple of percent.
The fact that FCX went up may be tied to the same things that are helping the economy in general.
First of all, commodities have benefitted from the slow but sure US economic recovery.
Copper futures respond favorably to a rising economy. Gold, on the other hand, is largely a defensive investment.
As United States stock advances lead declines, how is it that many are buying stocks in a rising market while others are buying gold stocks as a hedge?
Economic stimulus, Printing Money, the Recovery, and Gold
Gold bugs are concerned that while the Bernanke Doctrine may well get the US economy back on track that it will also devalue the dollar.
If you believe that the US will not be able to handle its debt and that it will print money in excess you may well want to buy gold.
An attractive alternative for many is to buy gold stocks such as FCX. Gold mining stocks commonly rise faster than gold in a rising gold market.
Unfortunately, gold mining stocks also tend to fall faster than gold in a falling gold market.
While the S&P 500 has done well of late there is still a lot of concern about the debt situation in Europe as the EU upped its bailout fund limits.
As United States stock advances lead declines the other news is about Europe flirting with a recession and Chinese concern about lower exports as well as a real estate crash.
While manufacturing is expanding in the USA many are considering if Euro Zone austerity or growth is going to be the next factor that drives stock prices.
Trading Options
As United States stock advances lead declines many are still uncertain about the strength and depth of a US market recovery.
The options trader is familiar with this sort of situation and can profitably adapt to the rise and fall of the market.
A savvy options trader learns when to buy puts and when to buy calls on stocks of his choice.
This trader does not let his emotions drive his stock picks.
He does not let the psychology of trading take over from careful fundamental and technical analysis.
Trading options as United States stock advances lead declines gives traders the ability to reduce investment risk and leverage their investment as well.
As always we offer this discourse to stimulate thought with profitable options trading as the aim.
2. To see a complete version of this presentation and
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Stock-Advances-Lead-Declines
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Stock-Advances-Lead-Declines
www.Options-Trading-Education.com
3. United States stock advances lead declines recently
by roughly four to three.
The broad range of United States stocks, as
measured by the S&P 500 index, markets have had
their best first quarter in 14 years.
www.Options-Trading-Education.com
4. A positive approach in trading options on the US
economic recovery has worked for many options
traders.
The United States manufacturing sector continues
to beat expectations and the real estate market may
have finally hit bottom.
www.Options-Trading-Education.com
5. Meanwhile, gold and copper mining
company, Freeport-McMorRan Copper & Gold Inc. -
FCX - rose a couple of percent.
www.Options-Trading-Education.com
6. The fact that FCX went up may be tied to the same
things that are helping the economy in general.
www.Options-Trading-Education.com
7. First of all, commodities have benefitted from the
slow but sure US economic recovery.
Copper futures respond favorably to a rising
economy. Gold, on the other hand, is largely a
defensive investment.
www.Options-Trading-Education.com
8. As United States stock advances lead declines, how
is it that many are buying stocks in a rising market
while others are buying gold stocks as a hedge?
www.Options-Trading-Education.com
10. Gold bugs are concerned that while the Bernanke
Doctrine may well get the US economy back on
track that it will also devalue the dollar.
If you believe that the US will not be able to handle
its debt and that it will print money in excess you
may well want to buy gold.
www.Options-Trading-Education.com
11. An attractive alternative for many is to buy gold
stocks such as FCX. Gold mining stocks commonly
rise faster than gold in a rising gold market.
Unfortunately, gold mining stocks also tend to fall
faster than gold in a falling gold market.
www.Options-Trading-Education.com
12. While the S&P 500 has done well of late there is still
a lot of concern about the debt situation in Europe
as the EU upped its bailout fund limits.
www.Options-Trading-Education.com
13. As United States stock advances lead declines the
other news is about Europe flirting with a recession
and Chinese concern about lower exports as well as
a real estate crash.
www.Options-Trading-Education.com
14. While manufacturing is expanding in the USA many
are considering if Euro Zone austerity or growth is
going to be the next factor that drives stock prices.
www.Options-Trading-Education.com
16. As United States stock advances lead declines many
are still uncertain about the strength and depth of a
US market recovery.
www.Options-Trading-Education.com
17. The options trader is familiar with this sort of
situation and can profitably adapt to the rise and fall
of the market.
www.Options-Trading-Education.com
18. A savvy options trader learns when to buy puts and
when to buy calls on stocks of his choice.
www.Options-Trading-Education.com
19. This trader does not let his emotions drive his stock
picks.
He does not let the psychology of trading take over
from careful fundamental and technical analysis.
www.Options-Trading-Education.com
20. Trading options as United States stock advances lead
declines gives traders the ability to reduce
investment risk and leverage their investment as
well.
www.Options-Trading-Education.com
21. As always we offer this discourse to stimulate
thought with profitable options trading as the aim.
Never trade unless you understand both
fundamentals and technical aspects of the equities
involved.
www.Options-Trading-Education.com
22. For more insights and useful information regarding
options and options trading, visit www.Options-
Trading-Education.com.
