Bigger Range Around the Corner

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9fbkRob1UyeHNyQQ==[/video_player] U.S. stocks with a stealth rally this afternoon, pushing to highs throughout the session, with over 40 new 52-week highs in the S&P 500. Including IBM which TheoTraders had a position in and closed today with a 70% profit. With today’s gains, the Nasdaq Composite traded above its prior intraday high of 5584.26, led by gains in Internet, semiconductors, and software names. Materials pushed higher (52-week high for FCX) while oil prices advanced for a fourth day. There were also five Dow components reporting today (DD the only one higher, with VZ, JNJ, TRV, MMM all lower). Once again, after a few days of weakness, U.S. stocks have found themselves pushing higher as fear dissipate (CBOE Volatility VIX index falls back to January lows near 11 – not far from all-time lows). Markets also continue to sort out impact of new Trump

Read More »

Skew Remains Large in a Tale of Two Markets

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9Uakd5Z093OEhmQQ==[/video_player] U.S. stock averages opened the day in negative territory, but pared losses into to the close for 9th time in the last 10 trading day. Most of the news of the day focused around Donald Trump and several policy changes on his first working business day in the new administration. The NASDAQ bounced more than 30 points off its lows, while the S&P and Dow were weighed down by weakness in energy, as markets await a very busy week of corporate earnings. With all eyes on comments/policies from President Donald Trump let’s check out the SKEW and what it means. This has only happened 6 other times in the last 3 years… To learn more about these opportunities join me for a free online seminar called, ““The Right Trading Strategy for 2017 and Beyond” sign up here: https://theotrade.com/snap/

Read More »

Finding Opportunity in the ETF Market

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS84UnpncHZYRGtRMA==[/video_player] With Friday’s gains, the Dow Industrial Average snapped its 5-day losing streak as earnings helped buoy stocks on the day. However, if we look back in the last 2 weeks the broad based S&P 500 index literally did not move. In this weekend edition let’s hunt for the best opportunity in today’s markets.  To learn more about these opportunities join me for a free online seminar called, ““The Right Trading Strategy for 2017 and Beyond” sign up here: https://theotrade.com/snap/

Read More »

Is SKEW Good For You?

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS93a2pYZ3Fac19mcw==[/video_player] Stocks slipped again, as the Dow Industrial Average fell for a 5th straight day, down about 300 points from all-time highs reached two-weeks ago (1/6) and at 6-week lows heading into tomorrow’s Presidential inauguration. Today marked another round of positive economic data with jobless claims plunging and housing data rising. The dollar rebounded on the better data and as ECB President Draghi said QE may be expanded if needed (which weighed on gold)…but the dollar pared gains and bonds pared losses. The CBOE Volatility Index (VIX) tops 13 level, above 2-week highs and up for a 3rd day. The NASDAQ 100 Index touched a record intraday high earlier – before sliding. In tonight’s learn about SKEW and the opportunity it presents in the short term…

Read More »

The reality of earnings and a quiet market

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9JeTFhT3lQUzVURQ==[/video_player] Treasuries slumped, as bond yields surged sharply to the upside for the 10-year to around 2.42%. The tech heavy NASDAQ rebounded after posting its worst performance of the year yesterday (falling from record highs reached last Friday) amid a jump in semiconductors and ahead of NFLX earnings. All eyes on the European Central Bank tomorrow morning. In tonight’s video we will go through the quarterly lesson of the positions you can take around earnings…

Read More »

Financials Take the Hit From Dollar Comments

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9KeVBPWFJTT2w0SQ==[/video_player] Stocks opened in negative territory, losing steam throughout the session ahead of a busy week of corporate earnings. Equities fell on Brexit commentary from UK Prime Minister Theresa May and on a plunging U.S. dollar after Trump talked tough amid the recent strength. The dollar fell after an interview with The Wall Street Journal late last week, Donald Trump said the U.S. currency has gotten “too strong.” Trump said dollar strong especially considering the China’s is “dropping like a rock.”…said “our companies can’t compete with them now because our currency is too strong…and it’s killing us”. Today the Volatility Index (VIX) jumped over 7% after reaching its lowest level since July 2014 on Friday. Financials led the S&P 500 lower, the recent market leaders, led the decline as investors fled to Bonds driving yields lower. This is the opportunity I’ll be looking

Read More »

Buy Volatility in the Zombie Markets

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9lYXhZN1FxR1VyRQ==[/video_player] Stocks posted small gains on Friday and remain near record all-time levels heading into the start of earnings season next week. Financial earnings grabbed the headlines and were mixed, but still posted solid returns, led by a jump in regionals. Large cap banks rallied as well as JPM posted solid returns, while BAC and WFC were mixed but rally with jump in bond yields early after economic data sent bonds rolling. Markets are closed on Monday in observance for Martin Luther King Day, but then the earnings floodgate opens, with reports from several banks, and tech companies early next week. Note volatility remains subdued, as it has now been 26 days since the S&P closed with more than a 1% move (12/7). This is what to buy in a zombie market…

Read More »

ATR a Leading Signal for Potential Pullback

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9Zb1ZQSzgzQ2doNA==[/video_player] Can’t keep this market down! Even though major U.S. averages ended lower on the day, as the NASDAQ ended its 7-day win streak (and 4-day streak of consecutive all-time highs), markets finished well off their earlier lows as investors continue to take advantage of any opportunity to add to positions on the slightest pullback. In tonight’s video we take a look at one signal that might be a sign of a longer lasting pullback for a swing trader or long term investor…

Read More »

Placing a Trade in the Emerging Markets ETF

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9EZnltRlVkbkRVOA==[/video_player] The Nasdaq managed a 4th consecutive record close despite the bumpy ride in biotech following comments from Donald Trump on pricing. Oil prices recovered after two days of hefty declines, despite bearish weekly inventory data. The story of the day was Donald Trump, holding his first press conference since July 2016, targeted drug pricing, sending large cap/specialty pharma and biotech stocks plunging. With earnings season starting and geopolitical risk on the risk in tonight’s video I will share the type of products to trade and the strategy to use…

Read More »

Shell Game until Next Catalyst

[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9MaWVJb2s5WGtUYw==[/video_player] Stocks ended mixed for a second straight session, as the Nasdaq posted its 3rd straight record close (and up a 6th straight day), but the Dow Industrials slipped again as its race to 20,000 failed. All eyes will be on the banking sector this week, when JPM, WFC, BAC headline the start of earnings season this Friday morning. Market volatility has dried up over the last few weeks, as it has been over a month since the S&P 500 last posted a more than 1% closing move (12/7). What will be the next catalyst – a earnings surprise, something from the new administration or the Fed? Let’s take a look at how you can play the opportunities ahead…

Read More »

Most Recent

The Boeing Rule That Cost Me $4,000
My First 2 Trades Were Winners. Then Came the Hard Part.
Where Big Money Leaves a Fair Value Gap on the Nasdaq
What Bailing Early Cost My Trading Room
Where the Real Selloff Starts

Get educational market insights sent right to your inbox.