Forex Trader Top 3: Crude Topping and AIG Trading Outlook
Mark Whistler is the founder of www.WallStreetRockStar.com and is the author of multiple books on trading. Mark’s newest book, The Swing Trader’s Bible – co-authored with CNBC/Fox News regular guest Matt McCall – will be on shelves in late summer, 2008. In addition, Mark also writes regularly for TraderDaily.com and Investopedia.com.
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1. Free Conference Call with Mark Whistler
The News:
Today, please join Mark Whistler for a free conference call at 1:00 PM EST – discussing the present state of affairs within global markets.
The Breakdown:
Crude oil is trading at highs; the U.S. economy is showing signs of recovery, all at the same time as growth in the Euro area could be declining. What’s more, recent volatility with Forex markets has more to do with comments from policymakers, over actual economic events.
What’s more, there are a few significant technical events setting up within Forex markets that traders will not want to miss.
Since the beginning of April, Mark Whistler’s track record through the Forex Force trading service shows a 646 PIP gain. The actual trades are:
The Bottom Line:
Today’s conference call is free – and informational – for all traders who are seeking guidance to present Forex markets. With a trace record clearly showing success, this call should not be missed.
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2. Crude Looking for Short-Term Top
The News:
Crude has spiked to $125 a barrel, the trade could be nearing a short-term top.
The Breakdown:
Recent supply issues have driven crude prices to all-time highs – in the $125 area. However, on Thursday, OPEC reiterated that there are no supply shortages in the present market, while also mentioning that some suppliers are having trouble finding buyers.
Moreover, the U.S. dollar has rallied from lows – thus presenting more evidence that crude is overbought in the short-term. There could be more upside left, as crude is presently trading in the second upward wave within Elliot Wave theory.
The ascending U.S. dollar coupled with comments could take some premium off of oil in the near-term. However, on a technical basis, there could still be upside left in the trade, after oil cools into the $100 to $110 area.
The Bottom Line:
If oil is to run higher, a pullback could be right around the corner, as nothing the markets ever goes straight up, or down.
3. AIG: Bombshell with an Offering
The News:
AIG
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reported dismal first quarter earnings – with a loss of $7.8 billion – due to massive losses of credit derivatives. To compensate, the company will now raise $12.5 billion.
The Breakdown:
Credit markets continue to add pressure to financial and insurance companies, as seen in AIG’s second quarter multi-billion dollar loss. Thursday’s announcement comes on the heels of a fourth quarter 2007 loss of $5.3 billion, bringing the company’s total subprime tab to $17.8 billion.
What investors need to know is this: Unlike Bear Sterns
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The Bottom Line:
Friday’s session for U.S. equity markets will be very interesting. Shares up AIG are already set to gap down – opening in the $40.50 area. Should AIG rally back above the $41 mark, the event would infer Wall Street likes how AIG is handling the wretchedness of the entire situation at hand. Conversely, if the shares trade below $40 – after the open – investors could be throwing in the towel and more downside is likely on the way.