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Jack Bouroudjian
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H. Jack Bouroudjian is the host of the syndicated program “The Jack B. Show” on the Salem Radio Network, a regular commentator on CNBC, author of “Secrets of the Trading Pros” (Wiley, 2007) and a columnist for Townhall Finance. He is also chairman of Bull & Bear Partners, a financial... More
My company:
The Jack B. Show
My blog:
The Trading Jacket
My book:
Secrets of the Trading Pros: Techniques & Tips that Pros Use to Beat the Markets
  • Gold and S&Ps: Key Technical Levels
    If you read this blog or listen to my podcast on a regular basis, you know that I don’t consider myself a technician. But that doesn’t mean I don’t pay attention to technical levels—you have to take information from multiple places in order to make the best decisions. So to close out the first full trading week of 2012, I’m going to go over a couple of the technical levels I’m watching.

    First, gold. It’s been holding steady around 1625 for the last day or two, but what I want to see is for it to hold above 1620 on a weekly basis. I think there’s still a lot of upside, but we might do work in the 1600-1650 range for a while. We are now at a point where gold has to be bought on dips like that bear trap we saw last week—with currencies being debased around the world, I think gold could find ourselves as high as the 2100-2200 range this year.

    I’ve also been watching the S&P 500, waiting for it to give me some confirmation. I think that if we can settle above 1281 on a weekly basis (that’s on the March futures contract folks, not the cash) then we are technically breaking out. That’s when I think the nonbelievers will rush in and start chasing. And that’s when yours truly will start selling it to them. I might miss the top, but no one ever went broke taking profits.

    --

    If you’re trading grains (specifically corn) and missed today’s show, you’re going to want to download the podcast to hear Howard Marella of Index Futures Group talk about the trade he’s got on, plus what he thinks is on the horizon for the commodities markets over the next few months. Wonderful stuff!

    www.thejackbshow.com
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    Jan 06 3:50 PM | Link | Comment!
  • What This Week’s Jobs Reports Mean for the Markets
    Folks, this morning’s ADP number blew away street. Private-sector payrolls increased by 325,000 last month, far surpassing the forecast of 178,000. Now the expectations for tomorrow’s non-farm payrolls are even higher, but the range is still pretty significant—the projections are anywhere from 110,000-200,000.

    Tomorrow’s number will be the real tell, of course, but it’s nice to see some improvement on the jobs front. I’d hoped we’d see growth like this sooner, but considering we’re living under regime that’s as hostile to business as just about any in U.S. history, numbers like today’s really tell me something about the real underlying strength in the American economy. My hat is off to the entrepreneurial spirit in this country—people have found a way to create jobs in spite of my fellow Chicagoan, not because of him. Just imagine what we could be doing with a free-market capitalist in the Oval Office!

    Politics aside, the question on investors’ minds is: What do these jobs numbers mean for the markets?

    Right now, there are a lot of portfolio managers who were pleased to see the ADP number reverse an overnight market that was down based on, you guessed it, news from Europe. So now they’re waiting to see what happens with non-farms before they make their move. If the numbers come in anywhere at or above expectations, I think we’ll see the markets react very well.

    What we don’t want to see tomorrow is a market that opens the day higher and then breaks. That means portfolio managers are buying the rumor and selling the news. Pay attention to what happens after the announcement tomorrow—if we’re able to continue to grind higher throughout the course of the day, that’s a sign of real strength.

    www.thejackbshow.com
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    Jan 05 4:27 PM | Link | Comment!
  • Gold Bounces Back: Managing a Winning Trade
    How about gold, folks!? When we dipped down around 1520 I called it a bear trap, and I warned people not to get caught in short positions. Now, over the last four days, we’ve seen gold bounce up around $90. Incredible!

    As a long-term gold bull, I was very eager to take advantage of that pullback and get into a long position. So I brought Greg Hadley of Bull & Bear Institute on the show. Greg walked us through a wonderful high-probability trade—a 15-16-17 fly—that turned out to be a real winner.

    So now that we’re in the money, I asked Greg back on this morning to find out what he’s doing next.

    Like me, Greg still maintains his upward bias. And he still has a lot of upside wiggle room in that trade. Since he doubled up on his initial position (long two 1500s, short four 1600s and long two 1700s—all calls), he’s taking half off while the shorts are in the sweet spot. That will give him around a 4-1 return—enough to pay for this trade and the next one too. Meanwhile, he’s holding on to the other half of his position, looking for a chance to make even more money down the road—remember, we’re talking about April strikes here.

    Every once in a while you have to pat yourself on your back when you make a great trade, and, like I told Greg, this is absolutely one of those times. A brilliant high-probability trade where we always know our exact risk-reward ratio—and the timing couldn’t have been better. This gold trade is just another in the long list of reasons why I’m so glad I came across the Bull & Bear Institute. I aim to be a good steward of information, and they bring that same philosophy to each and every one of their classes. Heck, I’ve been in the markets nearly 30 years and I’m still learning things from them!

    www.thejackbshow.com
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    Jan 04 3:28 PM | Link | Comment!
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