Implied volatility for options traders can give you a good idea of the market sentiment… When there is low implied volatility (generally readings under 20%) we can assume that investors are over confident in the markets and that they are not protecting themselves from risk. On the other hand, when there are high levels of ...…
Once again the NYSE Summation Index Chart is signalling a top in the markets via the bearish cross. Below I’ve highlighted all the most recent times the NYSE Summation Index has given this bearish cross – all but 1 of the past 6 have been major short term tops in the market. Click to enlarge ...…
10 Great lessons and tips to become a more profitable options trader from yours truly. Check out all our videos on YouTube:…
The financial sector (XLF) has not participated in the current rally at all. In fact both the 3 month and 1 month performance have the financials lagging other sectors: This doesn’t speak well of the strength of this rally. The chart of the XLF SPDR ETF also is pretty poor looking……
What are some low volatility options trading strategies you can use? Short Puts and Calls – This is the main strategy we use here and by far the most profitable. It’s cheap and you don’t have to enter multiple options making it an easy trade for beginners. With short options you can move your strike ...…
Based on the trading at InTrade, there’s a 90% chance the Republicans will take back the house in the coming week. InTrade is a prediction market where people buy and sell “odds” contracts on the likelihood of certain events happening. Ironically enough it’s very similar to trading Puts and Calls which I why I like the idea! Here’s the ...…
The OIH Oil Service Holdrs ETF is sporting a very classic retracement on it’s chart coupled with declining volume during this past rally. Take note of the fact that it’s hit the same trendline nearly 3 times in the past. You hear about “low risk trades” all the time…well, here’s a great low risk SHORT ...…
Good news for the bulls here – earnings overall have had more upward revisions this October than in September. Utilities and Health Care of all things had the biggest change. Here are two ETF lists to play the possible rally in those two sectors: UTILITIES Global Utilities ETFs iShares S&P Global Utilities Sector Index Fund ...…
Being that I’m still at a loss of words for this market, here are some top financial market news links to check out: Indications: U.S. futures drop ahead of earnings, economic data British Economy Slows Less Than Expected UBS investment bank loss sours client money turnaround Vestas to Cut 3,000 Jobs Oil falls to near ...…
Bet you never thought about this rally this way right? 7 of the last 8 weeks have been higher! Pretty amazing bulls, I have to say. What happens now right? Mixed trading but still marching higher… The last 2 weeks gains in the SPX have been small but they are nonetheless gains. Economic data has been ...…
With the mid-term elections just 5 days away, the clear question is “Will a Republican victory help the stock market? Or will the market fare better if Democrats hold on to Congress ? Here’s the shocking answers I found…Stocks have rallied after nearly every mid-term election since 1942. According to the Leuthold Group, a Minneapolis-based investment-research ...…
I figured this was a quick fitting post. Actually sent to me by another reader so (thanks Carole).…
This map of the percentage of houses per state currently in foreclosure really says it all right now. I live in Northern Virginia, just outside DC and thankfully we are not as bad as some other areas……
Here’s a quick look at Barron’s investor sentiment readings they gather each week. Bullishness is still running ramped.…
 5,691 Facebook Fans |
 10,063 Twitter Followers |
 6,774 RSS Subscribers |