Hey Market Pilots, In trading we never know what the next trade will lead to because we simply don’t know the future. All we can do is take the setups we recognize and follow our rules. Last week I wrote about how the markets were shifting and setting up for perfect trading potential. This week, … Read more
Hey Market Pilots, So we finally had the 2020 election on Tuesday, but now it’s Wednesday and we don’t have an answer. I believe this was of no surprise to the vast majority of us, as we knew this year’s election was going to be just another crazy thing to add to the list of … Read more
I am starting to see a common pattern arise out there in the market which is generally bullish, but it can also hold for a long time before it finally takes off. Many tickers out there did an amazing job running up in early October, and I view this as a great sign, especially since … Read more
The last few days have shown that we have to be prepared for anything to happen in 2020. Yes, there are only about 80 more days but with the rollercoaster of the COVID pandemic now reaching President Trump himself, why shouldn’t we expect aliens to visit too? Oh wait, they apparently did. Watching the various … Read more
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.