Last Friday Mike and Carter talked about the Real Estate Reit ETF IYR. Since last year, the ETF has beenan out performer and they think that it is a bit over done. We tend to agree with the guys on Option Action on CNBC, but lets take a look at the recommendation of buying the IYR June 87 Puts for $2.67.
This option trade has 66 days to work out. Remember that we are betting that the IYR will begin to retreat a bit due to the over bullish stance that it has right now. Remember your risk tolerance and live to trade another day.
Here are some things that will have attention this week.
- Oil – There are many factors that will impact oil and we think the path of least resistance is up.
- Europe – look to more slowing in Europe.
- Fed Policy – Most agree interest rates will not rise over the next 6-9 months. What happens when the probability increases that it will.
Happy Monday. Good Luck out there this week.
Global Spotlight
High-Stakes Tech Battles. The latest court battle between Qualcomm and Apple over the former’s patent model of licensing out technology kicks off April 15, and a ruling by the Federal Trade Commission is expected to drop any day now on whether Qualcomm has a monopoly in selling wireless chips.
Off to the Races With Trade Negotiations. On Monday, Japan’s economy minister will be in Washington to kick off trade negotiations with U.S. Trade Representative Robert Lighthizer.
Italy Ain’t Looking Pretty. The Italian government has admitted the country’s economy will slow down this year, while the levels of debt and deficit will be higher than originally announced.
The Terrorist Designation. The U.S. State Department’s designation of Iran’s Islamic Revolutionary Guard Corps (IRGC) as a foreign terrorist organization — the first time the United States has labeled an entity of another sovereign nation as such — marks a significant departure from the usual U.S. practice of relying on an executive order to target individuals or entities linked to a terrorist target.
Reviving CAATSA. In a shift, the Trump administration has openly threatened to apply sanctions on Egypt under the Countering America’s Adversaries Through Sanctions Act (CAATSA) if Cairo goes through with a significant purchase of fighter jets from Russia.
A Miscalculation in Libya? Khalifa Hifter and the Libyan National Army launched an offensive on Tripoli on April 4 in hopes of gaining a commanding position in Libya’s civil war, but the offensive has met stiff resistance, stalling out on the city’s outskirts.
The Battle for Istanbul. Turkey’s ruling Justice and Development Party (AKP) is exhausting every legal avenue it can to appeal recent municipal poll results in Istanbul that awarded the prized mayorship to the party’s secularist opponent, the Republican People’s Party.
Israel’s Election Wrapup. Israeli Prime Minister Benjamin Netanyahu will likely be asked by Israel’s president to form the next Israeli government, which will end up as a right-wing coalition filled out with nationalist and smaller religious parties.
Indonesia Goes to the Polls. Next week’s national elections will serve as a litmus test to incumbent President Joko “Jokowi” Widodo. If Jokowi wins, Indonesia will see continuity through 2024 in his push to build the country’s indigenous resource-processing sector, check Islamist populism and seek out free trade deals.
Stratfor.com
Economic Calendar
Briefing.com has a good U.S. economic calendar for the week. Here are the main U.S. releases.
Briefing.com
Last Weeks Numbers
Review Last weeks numbers here.
Earnings
Thomson Reuters I/B/E/S
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