Oil Leads Market Higher

Oil Leads Market Higher Oil leads the market higher today after the oil report comes out. The market reversal blew through a key level in the S&P at 1911. The next level to watch is 1934. If the S&P can break through that then I would expect 2000 to be in play. Keep this in…

Stocks and Bonds Inverse Relationship

Stocks and Bonds Inverse Relationship The stocks and bonds inverse relationship holds up today. As we look at the stock sell off and bond rally a bit closer we see that the market is acting very orderly. The market is doing what you would expect and the problem is the market rarely does what you…

Bear Market Coming

Bear Market Coming Round 2 of the bear market is coming. First let's look at the S&P futures that today saw the lowest volume of the year. Over the weekend I talked about how we needed more of a rally to squeeze traders out of their positions. Today we have come to a formidable level…

Volatility in the Stock Market

Volatility in the Stock Market Here's how TheoTrade has traded with the volatility in the stock market. This week we closed out winning trades in AMZN, EEM, and SPX. Let's look to next week and what we expect. There is a strong possibility of there being a little bit more of a short covering rally…

Stock Rally Over

Stock Rally Over Is the stock rally over? After a 3 day rally stocks pulled back today. The Nasdaq COMP saw the biggest pullback. The Nasdaq was led lower by aapl, amzn, fb, googl, and nflx. At one time these stocks were leading the Nasdaq higher and now they are leading the Nasdaq lower. Also,…

Risk Reward Trading

Risk Reward Trading Analyzing risk reward is vital for any trader to give themselves the best probability of success. In tonight's video we look at the Nasdaq futures. The market has seen 3 days of the rip your head off short covering rally. Now is their more risk we go down then go up? I…

Stock Market Rally

Stock Market Rally The stock market rally in the last two days has been the most intense we have seen in a while. This is what a strong short covering rally looks like. Oil's low was at $26 on Thursday while the S&P was making a new 52 week low. Since then oil has rallied…

Sell Options Premium

Sell Options Premium This is a premium sellers dream market. Volatility remains very high and now is the time to sell options premium. Nasdaq divergence continues to play out. We have seen the Nasdaq be the weakest index on down days and not rally as much as the other indexes on up days. EWJ is…

Any Hope for a Rally?

Any Hope for a Rally? Stocks continue to sell off today as recession fears grow. Let's take a look to see if there's any hope for a rally before the 3 day weekend. There are a few rays of hope that bulls can point to. Albeit very slim rays of hope. One is the 1800…

Recession 2016

Recession 2016 More and more evidence of a recession in 2016 seems to be rearing it's ugly head. Bonds are screaming higher which is a tell tale sign that the market is thinking recession. Meanwhile financials are officially in a bear market. I keep watching the implied volatility in the XLF and that tells you…