Five Indicators for Spotting a Market Bottom
A lot of rookie traders would give their left arm to be able to correctly spot and call a bottom in stocks, the better to get in position to reap maximum upside on the run back up. āHave we seen the bottom?ā Thatās a question on a lot of minds right now as weāre finally…
Time to Take Your Precious Metal and Energy Profits Off the Table
Energy stocks have been on a tear recently. Gold, silver, and other metal shares have had an impressive run, too. Their rise has been particularly impressive because the rally has defied the long odds imposed by rising bond yields. But thatās all in some doubt now. These markets find themselves in a fairly precarious position…
Bond Yields Break Outā¦ And This Energy Trade Just Exploded
Equities had a decidedly mixed day - just three of 11 S&P 500 sectors finished higher by 4 PM. The energy sector, as tracked by the XLE ETF, was one of those standouts, and itās easy to see why: Geopolitical risk and tension is continuing to increase, and supply is getting thin. Oil in particular…
Vol Markets Flash First Warning Since December as NVDA Tests High
One of the sources of fuel for a market rally is volatility selling. However, it's the selling that ultimately leads to the last squeeze higher before the fall. Looking at term structure of volatility and skewness is a way to identify volatility expectations and hedging. Over the past few days, these vol-based indicators have been…
Google Gaps, the S&P Stretches, and Big Money Hedges - Hereās What You Need to Know
Word that Apple might let Google play with its powerful Gemini AI product sent both stocks strongly higher today; GOOG gapped up more than 4% by late in the day. AI is once again providing the rocket fuel for liftoff. The S&P 500 is pushing toward new all-time highsā¦ but the FOMC will release a…
Nvidia Options Are Fading - Here's What Comes Next
Maybe you were camping on a mountaintop or lost in the woods this past Friday, but Nvidia, one of the marketās most important, high-volume stocks right now, took a wild ride to close out the week. Options volatility exploded higher as the seemingly unstoppable bullish fever on the stock broke. Shares slid around 10% from…
Here's the Real Reason Nvidia is the Only Stock That Matters
You probably understand correlation in the markets - assets moving together in some kind of relationship, even if that happens to be inverse. It usually makes intuitive sense. If stocks drop, safe-haven assets like gold or bonds move higher as the crowd looks for safety. That makes sense, right? The dispersion trade, on the other…
The "FOMO Trade" Moves Downstream in AI and Crypto
"When YOLO, you're all about FOMO." The Magnificent 7 tech mega-caps and AI are the quintessential "fear of mission out" plays - it often seems there are more bettors there than bona fide traders. But another "leg" has been kicked out from under these stocks" Google. Tune out the noise and we find...the stock is…
What to Make of Nvidiaās Earnings
Stocks got a little shot in the arm in the last hour of trading on the expectation that Jensen Huang and the Nvidia board would have good news for them. And thatās what they got - big beats, particularly in the revenue column, which saw a 265% year-on-year increase. Itās tough to exaggerate how important…
Get Ready for a Potentially Volatile Week
I hope you didnāt get your fill of competition this weekend, because weāre about to be treated to a matchup that I think will give Super Bowl LVIII a run for the moneyā¦ Itās all about the bulls vs. the bears. Hereās what I meanā¦ The S&P 500 started off the day pretty strong but…
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