Volatility, Skew, and the Trade for Next Week

Stocks end the week on a quiet note as they rallied up to the upper weekly expected move in the Nasdaq and S&P 500.  In this weekend's crucial market update video we look in-depth at the historical record low volatility.  Volatility is how traders generate returns in the market.  Many of the big banks are…

Earnings Still Matter!

One of the most important new trends is that stocks are becoming more volatile during earnings season. As you can see from the chart below, earnings moves are 4 times the size as the average daily move. The most obvious explanation that many give for this is the prevalence of ETF investing. ETF investors don’t…

Tech Earnings Are Great

Tech Isn’t A Bubble I have made it clear that the current stock market isn’t like the technology bubble of the 1990s. The biggest reason is because technology stocks aren’t overvalued compared to their earnings. The most misleading chart that bears show is the chart of the Nasdaq which makes it look like we are…

Short the Rally Tomorrow?

Stocks end the day flat.  We have been watching the weekly expected move for a long time now and fading the SPY when it hits those targets.  We are once again hitting the upper end of the expected move in the SPY.  Watch tonight's video to find out about a low risk trading opportunity for…

Fund Managers Bearish On America & Tech

U.S. Versus The World With the stock market reaching another record high let’s look at valuations across the globe. As you can see from the chart below, North America has the second highest current P/E ratio and the highest forward P/E ratio. North America has a relatively low 15-year earnings growth rate and book value…

Credit Spreads Tightest Since 2007

Spreads Tighten But Retail Is Weak Many investors are focused on the record highs in the S&P 500 and the Nasdaq and the VIX staying below 10 for another day, but I think the biggest story of Wednesday’s trading session is the tightening of bond spreads. As you can see from the chart below, the…

Why You Should be Buying Options Premium

Stocks continue higher today led by tech.  You will find out tonight's video market update very interesting.  Most option traders have learned to sell options as being the most consistent way to generate returns.  Watch tonight's video to find out why in the last 18 months this has been wrong!

Will The JCB End Its Addiction to Government Bonds?

Bank Of Japan Is In Trouble The unwind potential of the central banks’ assets that is about to hit the market is remarkable in its scope; the fact that it’s all happening at once only adds to the drama. There could be currency implications if the ECB decided to increase its bond buying while the…

Two Approaches for Low Volatility Markets

The stock market is back to its low volatility grinding higher ways. In tonight's video we look at the two trading approaches for low volatility markets. Watch this video update to find out what's working now in today's market...

GOP Healthcare Plan and the VIX

Tuesday the Dow fell because of weakness from Goldman Sachs (the Dow is price weighted and Goldman has a high price) while the other indexes were mixed. Ignoring today’s action and focusing on the last few weeks of trading, there’s no question the market has been unusually quiet. As you can see from the chart…

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