And They're Off!
Like a gunshot at the Kentucky Derby, this morning's opening bell launched traders into a bull market with the S&P 500 gapping up 6 en route to it's current 1270 area. But can this move really be credited as the start of new the bull market of 2011? Let's not get too carried away just yet. The first week of trading in a new year can be deceptive. This week gives Wall Street a chance to get positioned and as the tape clearly shows, there is some buying taking place but I'm not convinced this is the true nature of things just yet. So while the indexes attempt to assert their dominance in the first trading session of the year, I'm going to remain cautious, take a look at our weekly close and look into a few new front month options plays in the meantime.
Last week we discussed a trade in the silver ETF, SLV ($30.35). The trade has since moved in our favor and getting into other equities that benefit from a rise in silver prices makes sense. One equity that allows for this is Freeport-McMoRan Copper & Gold (FCX). This company specializes in mining of precious metals and our bullish outlook for gold coupled with a daily and weekly Squeeze in silver should give the boost we're looking for to hit our next target.