1. Jeanette SchwarzYoung,CFP®,CMT,M.S.
JordanYoung,CMT
83 HighwoodTerrace
Weehawken,NewJersey07086
www.OptnQueen.com
December14, 2014
The OptionQueenLetter
By the OptionRoyals
Rememberthe oldrule inPhysics,foreveryactionthere isanequal andopposite reaction. Thisshould
be rememberedwhenlookingatthe benefitsof lowercrude oil. While we initiallysee the positive
effects,ahuge cost savingsforthe general public,the eventual resultsthatflow throughtothe
economyare not necessarilybeneficial. Oureconomiesmeagergrowthhasbeen,inlarge part,due to
the explosive growthinthe crude oil recoveryindustry. Withthe price of crude oil under$65 it is
unlikelythatthisgrowthwill continueanditisreasonable forusto expecttosee large jobcuts inthat
industry. Entire townshave revitalizedbecause of the shale recoverindustryandnow,thiswillcome to
an unfortunate halt.
Yes we have reducedourimportsbutmore importantlyourexportsare fallingoff acliff. There isa
negative toa strongUS Dollar.Ourexportsare becomingnon-competitiveandimportsare becoming
cheap. At home we buymore of whatis importedbecause itischeaper. Ourproductsto those around
the globe are becomingtooexpensive topurchase andthuswe will have aproblem. Inan economy
where there islessdemand,lessisproduced.Whenlessisproduced,fewerare employedandthat,in
turn,affectsthe jobsthat were formallyneededintimesof higherdemand.Withdemanddropping,
those jobswill be injeopardy.
Bottomline isthat the S&P 500 and Russell 2000 are settingupto printa new life-of-contract-high. The
NASDAQ100 isa mere 536 pointsawayfrom itscontract highprintedonMarch of 2000. We have a
mechanical sell-signal onthe NASDAQ100 basisthe weeklycontinuationcontract. Itis likelythatthis
index will squeakinayearlyhighbefore 2015 ringsin.
Althoughcrude oil tradedhigherinthe Fridaysession,itmanagedtoprinta lowerhighonthe day,not a
goodthing. Crude oil seemstobe bottomingbutthatsaid,we do notadvise nibblingasyetinsomuchas
lastminute tax salesmayappearand keepthe pressure oncrude oil. The weeklychartclosedpositive
for the week,whichisthe firsttime inthree weeksthathashappened.
By ChristmasEve,goldshouldeitherclose distinctlyhigherorfail miserably.We believe thatitwill
continue tothe upside. Platinumprintedadoji candlestickthatwasan inside day inthe Fridaysession.
Platinumneedstoclose above 1256.30 forus to go long. Platinumisreflectingthe weaknessinenergy
sectorand is alsowarningusthat thisverytentative recoveryseeninthe USA mightnotlast.The US
DollarIndex isa beastand continuestoplow higher.
We wishall ourreadersa veryHappy Holiday! Enjoythe shortenedsessionandshortenedworkweek.
