[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9xOVVGR3hrYXFzbw==[/video_player] We take a look into the last 100 years of the S&P 500.
[video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9xODRVZzhaRjRRNA==[/video_player] Markets hit new highs… here’s what to expect going forward.
[video_player type=”youtube” youtube_auto_play=”N” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS94Yk13LU5VZHUySQ==[/video_player] There is divergence in the force… the market that is. Looking at the 3 major indexes – the SPX, RUT, and QQQ – the weakest index has become the strongest and the strongest the weakest. One thing that we have been harping on is historical volatility vs. implied volatility. Everybody wants to be premium sellers including us at TheoTrade. However, we have a shift in dynamics that traders need to be aware of or they will be run over by the market. When historical volatility exceeds implied volatility the juice isn’t worth the squeeze. This is a rare time in the market when you want to be long gamma (AKA an option buyer). TheoTraders buy options the smart way though through debit spreads. We recommend In Out Spreads in today’s market. Let’s dive in…
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9zQzFUR1hQaWRLZw==[/video_player] Thanks to Brexit, political and global uncertainty the Fed is now out of the way for the foreseeable future. TheoTraders will know what the risks are in the market. Here’s what to look for in bonds and stocks.
[video_player type=”youtube” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly93d3cueW91dHViZS5jb20vd2F0Y2g/dj1xSU9zOE52MUhkSSZmZWF0dXJlPXlvdXR1LmJl[/video_player] TheoTraders look for disparages between historical volatility and implied volatility to determine what kind of an edge the market is giving us. TheoTraders love nothing better than to sell premium. However, that’s not what the market is giving us right now. The SPX implied volatility is telling us that it is more advantageous to be a premium buyer. TheoTraders use in/out spreads to minimize risk. Get the In Out Spreads class here: https://theotrade.com/spreads-class/
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9kVVEwV1dvTkFsYw==[/video_player] TheoTraders look back at past bubbles in the market to look for similarities within the markets today. It is important that TheoTraders keep risk at a minimum during a time when volatility can explode at anytime. Let’s look at some of the pitfalls of trading in today’s market so you can avoid them and become a consistent trader.
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS96NEZNamQwN00xTQ==[/video_player] TheoTraders must zero in on where the risk is in the market. Let’s look at a comparison chart of the bonds, gold, and stocks. This will help us determine whether or not risk is still on the table.
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9aM0J0enFGMG5tQQ==[/video_player] A strong 3 day rally takes the S&P back to nearly pre-Brexit levels. Is the panic over? Well, let’s go back and look at some other past events in recent stock market history. Also, we will look at a few fractal charts to determine some possible trade entries.
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9aczJEeHUyOXNKMA==[/video_player] TheoTraders, today’s move was a hallmark sign of volatility. The question is – when do you get short again? And that’s why we get these explosive moves to the upside. Traders try to short these up moves all the way up. Remember, it’s all about duration over direction. Here’s how to handle the volatility…
[video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS82X3BCSlFfdzVLMA==[/video_player] The markets have some strong headwinds to overcome. From a fundamental perspective multinational companies have a lot of currency risk at stake. From a geopolitical point of view “global Order” has been rocked as the movement towards nationalism and away from globalism continue to gain steam. And tonight we look at the markets breaking down from a technical perspective.
