Entry Alert re: Eurodollar

By: Patrice Johnson | Sun, Jul 26, 2009
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7/26/2009 3:52:34 PM

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LONG-TERM TREND (> 1YR) OF THE MARKETS: DOWN

SHORTS

LONGS

None

August 2009 Eurodollar (Ticker Symbol: EDQ9)

This e-mail is to alert you that The J.E.D.I. Way will straddle the August 2009 Eurodollar as follows:

Buy to open one Eurodollar August 2009 99.375 Put Option (Ticker Symbol: EDQ999.375P) and buy to open one Eurodollar August 2009 99.50 Call Option (Ticker Symbol: EDQ999.50C) at a total limit price of $0.03 that is good for the day.

(See chart below for further details)

(CHART NOT AVAILABLE)

Prices on the August 2009 Eurodollar confirmed the Slow Stochastic sell signal when it closed lower than the previous day’s low on higher volume (not shown on Daily Chart) and higher open interest (shown below on Daily Chart). The next Resistance level on the August 2009 Eurodollar appears to be around 99.48 while the next Support level on the August 2009 Eurodollar appears to be 99.40. It is very well possible that the AugusT 2009 Eurodollar could surpass 99.50 even since RSI has been turning down with prices and the MACD has begun to cross over to the down side and since prices confirmed the Slow Stochastic sell signal which is why The J.E.D.I. Way is straddling the August 2009 Eurodollar.

Our total cost if we are filled at $0.03 is $75.00 before commissions (.03 x $2500 [see contract specs below for Euro$]) This is also our maximum loss on this trade.

Contract Specifications:GE,CME

Trading Unit:   1,000,000
Tick Size:   $.01 ($25.00/contract)
Quoted Units:   basis points
Initial Margin:   $1,350 Maint Margin: $1,000
Contract Months:   All 12 months.
First Notice Day:   Cash settled on last trading day of contract.
Last Trading Day:   Futures trading shall terminate at 11:00 a.m. (London Time) 5:00a.m. (Chicago Time on the second London bank business day before the third Wednesday of the contract month.
Trading Hours:   Globex: Mon/Thurs 5:00 pm - 4:00 pm;
Sun & Hol 5:00 pm -4:00 pm
LTD 5:00 am, All times CST.
Daily Limit:   none

Until Next Time.

Thanks for listening; Good Luck in your Trading; And May the force of volatility be you!

Best Regards,

 


 

Patrice Johnson

Author: Patrice Johnson

Patrice V. Johnson
The J.E.D.I Way

Patrice V. Johnson

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