Market CommentaryMore Market Commentary
Yesterday morning, I took an emotional hit as a trader. I received a notification that I had sold a stock. The problem was that the sell was some 9% below my purchase price and I lost money. No, I did not “bail out” of the stock and, no, losing the money was not the worst part, although that did bother me. Something else happened. The stock itself was climbing and had I not sold, I would have made money yesterday and today. So what happened?
I am not sure what happened, but somehow my stock ...Read More
Consider buying a call option on March SRW wheat futures.
See on the daily bar chart for March soft red winter wheat futures that prices have been beaten down hard and this week scored a new contract low. This market is presently well into oversold territory, according to the Relative Strength Index . Any reading below 30.00 on the RSI suggests the market is overdone on the downside and due for at least an upside corrective bounce soon. Consider buying a call option on March SRW wheat futures...Read More
As the equity markets take a brief pause over the next couple weeks for the holidays there are some great option strategies to take advantage of during this time off.
One of the better strategies I use is selling premium for puts and calls. This action allows me to collect a premium and let the time decay with no market activity work in my favor. Like Thanksgiving, we have a half day of trading on Christmas Eve, Christmas is closed and then the following week is New Years. The January option...
When we think of how to invest in the technology sector we tend to look at the traditional blue chips such as Google and Apple , or upcoming companies such as Facebook and Twitter .
However, there is a segment within this industry which is growing at faster pace and is worthy of studying for our investment portfolios. This segment is the mobile gaming industry in China.
One of the ETFs that covers this area is the KraneShares CSI China Internet ETF , which tracks a group of Ch...Read More
Much of the market anxiety lately surrounded a 'will they or won't they' - the Fed and their cutting back on their bond purchases. On Wednesday we found out exactly what they intend to do going forward, and they did it with an exclamation point! It was a bold statement and very dovish economic forward guidance. The Committee was very clear about the future prospects for the economy, a bright outlook and re-affirmation that the QE program was indeed working. Chairman Bernanke entertained...Read More
Featured StoriesMore Featured Stories
Why are casinos so successful? The answer is because all of the games have a house edge, and the player is mathematically guaranteed to lose over the long run.
Sure you can walk in, win some money, and walk out ahead, but over time the casino always wins. If you’re not careful, trading can be no different! Without a clearly defined edge, traders are merely gamblers in a casino. Successful traders are the ones who have figured out how to find a consistent edge and transform themselves into th...
In April when the Dow was trading at 14,600 the Power of the Pattern presented the idea that the Fed and Helicopter Ben’s easy money policies could push the Dow up to 16,000, which would then become a key level of resistance.
Now seven months later the Dow has reached the 16,000 target and Janet Yellen takes over at the helm of the Fed. As she takes over, the 4-pack below in Figure 2 reflects that the Dow is facing the key 16,000 resistance level as well as another key line dating back to ...Read More
It’s December and it’s time to look at what the 2013 has left us with.
This year started with great expectations. Everyone was expecting the global economy to recover. Politicians and policy makers were waiting for the 2013 like a child would wait for Santa Claus to appear in the living room. Well, Santa Claus did really show up; the problem is that instead of presents, he brought coal.
2013 will probably be remembered like the year in which the discrepancy between financial markets and real...
With the advent of electronic trading platforms, the door of opportunity was swung wide open for traders of nearly all types and sizes to participate in the futures and options markets. In the not too distant past, this was a trading arena that was only available to well-funded and, arguably, sophisticated speculators.
The CME Group has played a big part in bringing these products to the masses through relentless strides in technology. Their efforts have paid off; exchange trading volume ...
Before we go deeper let me ask you a few questions: How often have you gone over your trading system? How often have you tweaked the EMA, the RSI setting, or developed yet another holy grail indicator? How many hours have you spent listening to what other traders are telling you to do and tried to apply it? Yet in spite of all the effort you are putting in to iron out all those weaknesses in your trading strategy you are still pretty much were you were before. Does this sound somewhat famili...Read More