Tesla’s Autopilot Breakout Is Only the First Event of a Busy News Week
Tech had a pretty good day. Tesla shares finished the day more than 15% above where they started on news the company will roll out its advanced driver assistance tech in China. Mega-cap stablemate Apple also helped lift the S&P 500 as Citi confirmed the stock would keep a “Buy” rating ahead of May 2…
Here’s What You’ve Got to Watch for as Earnings Ramp Up
Stocks rallied back strongly today after shaving off more than 1% last week, but the buying fizzled heading into the close. It was gold, which until recently had been rock-solid, that took the biggest hit as traders took profits. But the question on every trader’s mind right now has to be: “Can we trust it?”…
Five Indicators for Spotting a Market Bottom
A lot of rookie traders would give their left arm to be able to correctly spot and call a bottom in stocks, the better to get in position to reap maximum upside on the run back up. “Have we seen the bottom?” That’s a question on a lot of minds right now as we’re finally…
Time to Take Your Precious Metal and Energy Profits Off the Table
Energy stocks have been on a tear recently. Gold, silver, and other metal shares have had an impressive run, too. Their rise has been particularly impressive because the rally has defied the long odds imposed by rising bond yields. But that’s all in some doubt now. These markets find themselves in a fairly precarious position…
Bond Yields Break Out… And This Energy Trade Just Exploded
Equities had a decidedly mixed day - just three of 11 S&P 500 sectors finished higher by 4 PM. The energy sector, as tracked by the XLE ETF, was one of those standouts, and it’s easy to see why: Geopolitical risk and tension is continuing to increase, and supply is getting thin. Oil in particular…
Vol Markets Flash First Warning Since December as NVDA Tests High
One of the sources of fuel for a market rally is volatility selling. However, it's the selling that ultimately leads to the last squeeze higher before the fall. Looking at term structure of volatility and skewness is a way to identify volatility expectations and hedging. Over the past few days, these vol-based indicators have been…
Google Gaps, the S&P Stretches, and Big Money Hedges - Here’s What You Need to Know
Word that Apple might let Google play with its powerful Gemini AI product sent both stocks strongly higher today; GOOG gapped up more than 4% by late in the day. AI is once again providing the rocket fuel for liftoff. The S&P 500 is pushing toward new all-time highs… but the FOMC will release a…
Nvidia Options Are Fading - Here's What Comes Next
Maybe you were camping on a mountaintop or lost in the woods this past Friday, but Nvidia, one of the market’s most important, high-volume stocks right now, took a wild ride to close out the week. Options volatility exploded higher as the seemingly unstoppable bullish fever on the stock broke. Shares slid around 10% from…
Here's the Real Reason Nvidia is the Only Stock That Matters
You probably understand correlation in the markets - assets moving together in some kind of relationship, even if that happens to be inverse. It usually makes intuitive sense. If stocks drop, safe-haven assets like gold or bonds move higher as the crowd looks for safety. That makes sense, right? The dispersion trade, on the other…
The "FOMO Trade" Moves Downstream in AI and Crypto
"When YOLO, you're all about FOMO." The Magnificent 7 tech mega-caps and AI are the quintessential "fear of mission out" plays - it often seems there are more bettors there than bona fide traders. But another "leg" has been kicked out from under these stocks" Google. Tune out the noise and we find...the stock is…