The trading days surrounding the Labor Day weekend saw the market sell off hard. This was not a surprise as we had been seeing indications that the market was getting very extended. One way that I can detect when the market is ripe for a turn is by watching the UVXY. This is a leveraged ETF of volatility and can be a tool for hedging.
Having my blog this week was very timely with ThinkorSwim breaking for not just Monday, but now Tuesday as well. Fingers crossed this doesn’t go for a third or more day. I am thankful that I was in cash for this and the Markets are basically not doing anything (except for TSLA). This made me think about our reliance on technology, and in this case, a single point of failure.
Yesterday, I went out wakeboarding with my family here in Gig Harbor, Washington. The weather was great, but fairly windy, which chopped up the surface of the water. Fortunately, my parents’ place is in a cove so we just stayed further back to find smoother…
“The Fed will buy what I buy” is a phrase I have been hearing. Essentially it means that the Fed is in the business of backstopping the market and making sure it doesn’t go down at any cost. That cost is in the form of nearly 0% interest rates, digitally printing money, and buying corporate bonds.
It is perplexing to see the price performance of many stocks right now. Some do make sense such as NFLX, AMZN, SHOP, TDOC, ZM which are all benefiting from increased use and demand. But the vast majority of others don’t make sense nor are their prices reflecting reality.
One of the greatest strengths of the human race is our ability to adapt to our environment. Not the kind of adapting where we grow fur, webbing, or a new limb, but rather, adapt mentally.
As I embarked on my path to becoming a trader I would come across phrases and euphemisms that didn’t really make sense to me. Quite similar to how Luke Skywalker felt and looked when Yoda was talking to him.
I can only put more effort into myself, and that effort comes in the form of self control, discipline, and the ability to wait. Waiting for the right entry, then waiting for the position to grow, and waiting for the right exit.
This week alone, I have heard the Trade War between the US and China was both close and far from being completed. Or was that just the Phase One portion? Wait, Phase One? When did that become a thing? I have been interviewed by two different media outlets a few weeks apart and each of … Read more
FAANG was the acronym created from the powerhouse stocks that lead the way for many years as they grew to huge significance in the market. It was a catchy term that helped seat them in our brains and, with a fierce term like that, probably helped them grow on aura alone. One thing we reliably … Read more