Stock Screener [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9RdnhTRDFoTm5IMA==[/video_player] Using the stock screener to find trade ideas will save you time, money, and stress. Tonight let’s look at the thinkorswim scan tab and some of the numerous stock screeners I use to scan for trade set ups I like.
Expected Move thinkorswim [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS8yaDZnemVFSUNvTQ==[/video_player] The expected move in thinkorswim is showing us the SPX is not expected to move much this week. The market is closed on Friday, March Madness has started, and volatility is as low as it gets right now. We can look across the board even with AAPL and there big news announcement the implied volatility is low. Let’s take a look at what the market is expecting in this shortened week.
Dividend Paying Stocks [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9ZMjNlT29wNjBEVQ==[/video_player] Dividend paying stocks are on the move. Fund managers are shifting their asset allocation around to put more money into stocks that are paying at least a 3% dividend. No matter what dividend paying stocks you pull up they are all near 52 week highs with many at multiple year highs. This is a defensive position fund managers are taken. This is also a sign they are worried about the possibility of negative interest rates. Let’s take a look at the dividend paying stocks I’m watching.
Stock Market Correlations [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9EaWgxNlpaVkJQQQ==[/video_player] Stock market correlations are all wrong right now as the market continues to process the Fed announcement from yesterday. Bonds continue to march higher with all the commodities and the stock market. The weaker dollar is driving commodity prices higher. The Fed signaling a reduction in rate increases this year seems to have the markets running. Tomorrow they may realize the Fed is actually signaling their expectation for the economy to weaken this year. Also, the dollar may get a lift when traders realize unlike Europe and Japan at least U.S. interest rates are still positive!
Stock and Bond Market Correlation [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9EX3phWkdhdnZBWQ==[/video_player] The stock and bond market correlation will dictate what happens next. If the bond market explode higher we can see a sell off in the stock market. However, if the bond market breaks down further you could see a bigger move higher in the stock market. Although I remain bearish in the long duration the short term duration could remain bullish. The bond market will be the tell tale sign.
Put Debit Spread Strategy [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9QMkFNNG5fazRCdw==[/video_player] Today I used a put debit spread strategy in GOOGL. As I mentioned over the weekend I was looking for GOOGL to trade up to 750 today. That is where I want to set up a put debit spread. Let’s review specifically what I did if you decide the trade is right for you.
Implied Volatility Expected Move [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9iblBzaXdyc3ktcw==[/video_player] Every week we need to look at the implied volatility and expected move for the week. Comparing the implied volatility and expected move to the previous week will tell us if there is more risk in the market. For next week the oil production report is coming out and the FOMC will make a decision on rates. According to the implied volatility and expected move the market saw more risk in the ECB announcement last week than they do in the FOMC announcement next week. Let’s also look at few potential trade set ups. For example, GOOGL is on my radar as a potential candidate for an in and out spread.
Volatility is Your Friend [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS94WjBlWGVPdXczVQ==[/video_player] Volatility is your friend and it’s back! Today’s market saw more than a 40 point move in the SPX and 100 point move in the NDX from high to low intraday. This sets up some great trading opportunities for us. Today I was able to intraday date FB and QQQ short. The bigger picture though is an increase volatility tends to lead markets lowers. When the risk is on investors seek safe havens and the stock market is no safe haven. Find out how we can take advantage of this volatility.
Risk in the Stock Market [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9sMkxFdERlMThsTQ==[/video_player] Do you know what your risk is in the stock market? The way the VVIX is moving is telling us that we are about to make a big move in the market or traders are hedging like crazy. There is a big demand for VIX options. There could be a lot of reverse type of trading in the coming days. It’s time to get positioned because the stock market is about to make a big move.
Volatility of Volatility [video_player type=”youtube” youtube_remove_logo=”Y” width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9yUjltWGI0VFhDYw==[/video_player] Looking at volatility of volatility is one way to look under hood of the market to determine what is actually happening. The product symbol is VVIX and what is conveys is the volatility on option prices. By looking at the VVIX we can see that fear is coming back into the market and we can expect higher volatility in the future.
