There is a setup in the markets currently that mirrors the setup just before Black Monday in 1987 that you should be aware of. This does not mean that history repeats; as traders we look at probabilities first. Let me make the case: In 1987, from June to October, the market was seeing a winning … 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.
Since the March lows, we have seen the Fed do incredible things never seen before. It started with conventional things (like slashing rates and providing liquidity to markets) and quickly spiraled into modern day money printing via debt monetization and, even more drastically, buying corporate junk bonds.
John Carter made over $1,000,000 in one day trading Tesla using options strategies. And this isn’t the first time. In trading, we’re going to miss a lot of moves, but sometimes, we see opportunities where everything lines up and we do a full-court press.
“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.
Outside the markets, our economy is teetering in weird limbo. With stay at home orders around the world, the US has been faced with the highest unemployment that has occurred in our country’s history. Many companies were shut down as others learned how to work from home to stay on track.
Normally it would be redundant to say to technically minded traders that “news is noise” … but these are not normal times. Let’s talk about what a chart represents. A chart is a visual representation of the collective decisions and subsequent psychology of millions of market participants.
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.
The first quarter of 2020 has shocked the global energy market to its core. The venomous mix of COVID-19, a global economic recession, and a shocking OPEC+ price war has disrupted every single aspect of the crude and energy industries.