A Market On Edge

Stocks end volatile week right where it began the week. In this crucial weekend update learn we look at what to expect next week and what risks are lurking. Watch this video to find out what to watch next week. To learn more about how to trade volatility and the VIX watch this free online…

European Junk Bonds Now Yield More Than U.S. Treasuries

Junk Bonds’ Recent Trading On Friday, the small caps outperformed the mega caps as the Russell 2000 - RUT was up 0.40%, while the Dow was down 0.43%. In the midst of this middling action, the JNK high yield bond index was down 0.05% and the HYG high yield bond index was down 0.03%. The…

Wal-Mart & Cisco Drive Stocks Higher

Economy Growing At Potential The chart below is a unique perspective on the economy which isn’t discussed much. It shows the real GDP in relation to the potential GDP. It looks at productivity growth to give you an idea of where the economy is relative to where it can be. Even though GDP growth per…

Walmart Bounce Means More Range into Year-End

Stocks pop higher today on the news the House passed the tax reform bill and good earnings from WMT. Does this mean more new highs or is the market setting the range of trading for the rest of the year. Watch this video to find out. To learn more about how to trade volatility and…

Investors ‘Fearful’ From A 1.15% Pullback

Actually Returns Are Good When Fund Managers Are Taking Risk In a previous article, I showed the chart below without the 3 year forward S&P 500 returns. Some bears were claiming the fact that fund managers are taking more risk than ever meant impending doom. As I mentioned, there have been times when the fund…

Fund Managers Overweight Emerging Markets & Underweight U.S. Stocks

Fund Manager’s Survey We’ve looked at some of the results from the BAML fund manager’s survey in a previous article. Let’s look at some more results to help us forecast where asset prices are going. The chart below shows the z scores of a few assets. When the z score is high, it is overbought…

Markets Display Imminent Risk Signs

Markets selling off slightly the last few trading days which has led to an expansion of volatility and the expected move not seen for a long time. Watch this video to get ahead of the risks in the market. To learn more about how to trade volatility and the VIX watch this free online seminar…

Wall Street Is Very Optimistic

Extreme Positivity The stock market was down marginally on Tuesday. GE is getting blamed for a lot of the selloff, but, since the Dow is price weighted and GE stock is in the teens, it has very little effect on the index. With such a big fall, some are wondering if GE will be kicked out…

Junk Bond Weakness Limited To Healthcare & Telecommunications

Relative Valuations We’ve seen a coordinated stock market rally in about every index globally. The chart below compares the recent Shiller PEs of the American, Japanese, European, and Emerging stock markets. The dotted lines are the average since the start of this bull market in 2009. As you can see, America, Japan, and Europe are…

This Omen Means Range-Bound

In this video we discuss the omen that means we are entering into range bound trading. Watch this video before you unnecessarily panic at what lies ahead... To learn more about how to trade volatility register for this free online seminar, “How to Trade Volatility and the VIX” here: https://theotrade.com/vix/

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