On the Edge of the Volatility Box

For the third time in three weeks the S&P is at the top of the range of the volatility box. This is a crucial point in the market. The SPX all week has been skirting the top edge of the expected move for the week. Our last gravity point is a stone throw away. Don't…

Small Caps Leading the Way?

Markets explode higher led by the Russell 2000. However, we still remain inside the volatility box in myriad of products. Here's the level you want to watch for a breakout…

Big Tech on the Ropes?

Da Bears are everywhere!--Initial jobless claims - 36 million and counting--Retail Sales-16.4%, total spending down 89.3% YoY--BBY, JWN, BBBY, COST, WMT, KR--GDP could decline by 42% in the second quarter, according to the Atlanta Fed Monsters of Tech5.8*FB+6.4*AAPL+12.7*MSFT+GOOGL+AMZN--tech weak and threating to break apart--sector rotations are reversing--RUT, XLE, XLF, and Tech--if tech goes, we all…

Are Bears Back?

The S&P 500 broke below and closed beneath this week's expected move.  This leaves us with a critical day in the markets tomorrow and Friday.  If the markets close the week outside the expected move to the downside it would be a strong bearish signal.  Let's look at a few other factors to take into…

The Range Continues to Define Markets

As the S&P stays stuck in a tight range volatility futures are showing signs of returning to normal. But, here's the one thing that will determine the market's next move…

A Market in Ludicrous Mode?

20.5 million with 14.7% unemployment Even the most bullish of the bulls are skeptics--Pros are in large part net neutral--Retail driving the bias The range is everywhere...--All asset classes are in lockdown mode!--Bonds--Gold--Index/Equities--Dollar Potential is explosive...--the volatility box--aka: the hurt locker Bonds might be coming back to life, defining factor--NIRP scare--Fed balance sheet My Primary…

How Long can Tech Hold this Market Together?

Financials were weak all day while the S&P remained flat thanks to strong tech stocks. The Treasury announced new 20 year Bonds and that sent the bond market lower and rates higher. In this environment that's not good for anybody! Here's why tech stocks may not be able to hold this market up for much…

A Tight and Dangerous Range Persists in Markets

Markets continue in range bound trading. In tonight's video newsletter Don provides an explanation on how you can take long duration short trades while getting paid to hedge in case the markets continue to go higher.

Are the Sellers Back?

Sellers are very much coming back into this marketplace. However, there is a much larger take on the whole situation. It's important to slow down and take careful steps in this chaos, instead of rushing right into a burning fire. The short answer is, yes, there are plenty of underlyings and opportunities for retail traders,…

A Market in Denial?

Lots of market activity today. The FOMC announcement was no surprise and had no impact on markets. Good news about an effective drug to treat covid-19 sent the market higher. Then after the close good earnings announcements from FB, MSFT, and TSLA sent markets even higher. The IWM ratio and QQQ vs IWM pairs trade…