Stock Market Capitulation

Stock Market Capitulation [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9UdXpuVGlkVUZoWQ==[/video_player] Stock market capitulation day. This is the type of action you wanna see when the market throws in the towel. After some heavy sell side activity culminating with record negative ticks the markets rip higher. As we look at the activity we look at the possibility of a short term rally. Keep in mind there are a lot of traders trapped in trades that will be selling into any rally. Don’t get caught up in any rally. Access each day as a new one.

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Stock Market Crash 2016

Stock Market Crash 2016 [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9YMEpPbUtKLWN0SQ==[/video_player] The word of the day is tumultuous. We still can’t get any type of relief rally in stocks. At the same time there doesn’t seem to be any capitulation in sight. The VIX is at a moderate level and we haven’t seen a big spike higher that would indicate traders are throwing in the towel. This is a liquidation event and they will hit all stocks. The Russell is down 20% in the last 9 months that is a full blown bear market in the small caps. This could be just the beginning of the sell side activity in 2016.

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Bonds and Stocks Relationship

Bonds and Stocks Relationship [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9KaFVYZ3Q4TDFtcw==[/video_player] Another roller coaster day, but today finished positive. The bleeding has stopped temporarily. Is there more upside? After such a down move there is always that potential. Stocks went higher and bonds went higher. Does something have to give? It is not likely that we will see stocks and bonds continue higher together.

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Oil Futures ETF

Oil Futures ETF [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS83QnNSczV4NHJVTQ==[/video_player] A wild roller coaster in the markets that ended massively unchanged. Where is the bounce everyone is looking for? Maybe it’s not happening because everyone is looking for it. 1900 is a big number though. I know many of you are waiting for that bounce to get out of positions. If we get it do not be the last guy out the door. The markets are looking very weak here and lower prices long term is in the future. One product I am bullish on is oil. The action today looked like capitulation. This is a position I am holding for a few days.

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How to Trade Volatility

How to Trade Volatility [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9QaFFpOXdzY0h6Zw==[/video_player] Volatility was at an extreme this week with this markets dropping 7%. What should you expect next week? And, what should you be looking at? After 15 years in the brokerage industry I know that retail investors do the worst during periods of market volatility. In the midst of volatility everything may feel like you’re doing is wrong. Every trader on the street will be talking about selling the rally. Indices will drive stocks so focus on the indices. In this type of market you want to choose spreads. Any directional option, a call or put, can lose money even if you’re right. You never wanna be in a position where you’re right and still lose.

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How Long Can The Pain Last?

How Long Can The Pain Last? [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9rZGdWLWNzTnJGbw==[/video_player] Markets are getting ugly. Let’s take a look at the indexes on what to expect tomorrow. Unemployment numbers in the morning could drive a lot of the market action.

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Can You Handle the Volatility?

Can You Handle the Volatility? [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9QLWk3Y2dzbHVNYw==[/video_player] Volatility has been front and center to kick off 2016. Yes, 2016 has been good for Don. But, all experienced traders know the biggest move you’re gonna get is the short covering rally. I wouldn’t be surprised to the SPX back to 2000 by Friday. This is not the time to start buying puts. Wait for the “rip you face off” rally to the upside before establishing new short positions. Stay focused on the broader market. There’s going to be very few glimmers of light when the overall market is being slammed.

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Lower Highs and Lower Lows

Lower lows and lower highs [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS84ZGd5MHRSR1YxWQ==[/video_player] Lower lows and lower highs in the markets. Tonight we take note of significant and minor support and resistance levels you should keep an eye on. The Nasdaq has a head and shoulder pattern developing. Lastly, let’s take a look at the Russell 2000 which is made up of small cap stocks. The technicals are starting to break down and it’s time to be very careful long.

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Volatility Inversion Watch

Volatility Inversion Watch [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9Xb2ppQzlsYXpvcw==[/video_player] The markets start the year with a bang. The FANG stocks that kept the markets a float in 2015 led the way lower today. I also want you to watch the financials very closely. The financials are the second largest market cap to the S&P. All the hallmark signs of volatility is there. What I also want to watch is volatility futures to see if there’s a volatility inversion. A volatility inversion is when the front month volatility futures are higher than the back month volatility futures. Right now the volatility skew is flat.

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Market Divergence Lead to Volatility?

Market Divergences Lead to Volatility? [video_player type=”youtube” youtube_remove_logo=”Y” width=”560″ height=”315″ align=”center” margin_top=”0″ margin_bottom=”20″]aHR0cHM6Ly95b3V0dS5iZS9SQXZDSzdGYkdxNA==[/video_player] The markets ended 2015 essentially flat. Will we see more volatility in 2016? That’s what I will discuss in this video. The story is market divergences. We will use comparison chart to compare all these indexes and analyze the divergences in the market. Large divergences have always ended in wild bouts of volatility.

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