Understanding VIX Options

Most traders, even experienced, are totally confused by VIX options and misunderstand what they represent. In a time of historically low volatility in tonight's video let's look at exactly what VIX options are, what they represent, and how to use them to trade more effectively...

Signs of Long Duration Risk Emerging

Markets continue to weaken in key areas. We have been talking for a while about a small group of stocks holding the markets higher. Today we saw a breakdown of these stocks much greater than the overall market. Here's where you need to keep your eyes on in the coming days...

How the S&P500 Will Handle the Next Week

Lots of catalysts over the next week around the S&P500 starting tomorrow with the FOMC announcement. Unemployment numbers come out on Friday. Oh and let's not forget the Presidential election which encompasses wikileaks and FBI announcements. Here's how to navigate the markets in the face all these landmines...  

Traders Are Going Long on Volatility, Are You Ready?

With traders buying up and going long on volatility, what are they preparing for? The only thing that moved today was volatility. Let's take a look...

Risk Metrics Explode as Markets Approach a Key Threshold

An October surprise sends volatility spiking higher on Friday. Here's what to look for this coming week. What types of trades to put on and how to take advantage of the election spread...

Markets Look To Fed Minutes, Jobs Report With Wary Eyes; Goldman Sees “Drawdown”

If you think it feels a bit tenuous out there you’d be right. On the heels of a rather inauspicious Tuesday session that saw the British pound hit a 31-year low while crude and gasoline futures plunged on (over)supply concerns, it was risk-off overseas, a sentiment that muddied the waters on Wall Street ahead of…

It’s Cool To Be A Bear. Do You Want To Be Cool?

Earlier today, I asked the following question: “Where’s The Bull Market?” My point was simple. Central banks have indeed driven asset prices into the stratosphere and a kind of needlessly contrarian collective gamble has driven oil back near $50 even as the fundamental picture is so bad that crude is being stored offshore in tankers…

Where’s The Bull Market?

If someone asked me to summarize my general outlook on markets - whether equities, fixed income, FX, or otherwise - in one sentence I’d say this: we are investing and trading in exceptionally uncertain times. Yes, that’s a cliche. But I think it’s an appropriate one in this case. To be sure, being bearish and…

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…

Trading Volatility

Trading Volatility Just when it looks like it's all over the markets rally higher. This is the type of day I've been looking for. The S&P Futures low of 1804 may be a short term bottom, but keep in mind the S&P was still off 20 handles today. Volatility is the name of the game…

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