Another Mixed Bag for the S&P 500 as FB and AMZN Falter and TSLA and Utilities Bid
The S&P 500 finished off the lows of the session, but didn't get any help from the Monsters of Tech. The outage and whistleblower for Facebook Inc (NASDAQ: FB) proved too much for the bulls and Amazon.com Inc (NASDAQ: AMZN) tested it's August support. While those names were being sold, Tesla Inc (NASDAQ: TSLA) closed…
Candlestick Patterns 101: Bullish Breakaway
Sometimes you experience a significant amount of selling, only to find buyers rush in. That should sound relatively familiar after what we experienced this past week. There probably isn’t a more representative candlestick pattern than a Bullish Breakaway. Bullish Breakaway Basics As you’ll see in the description, Bullish Breakaway’s aren’t the most common pattern. However,…
Markets Fade Gently as Retail Stock Chaos is Now on Deck
The S&P 500 tested new weekly lows as traders sold into the close. The most concerning thing for bulls is how orderly it was done. While the selling in the broader market was orderly, Bed, Bath & Beyond (BBBY) collapsed following it's earnings report. Are their earnings a prelude to a very troublesome outlook for…
Candlestick Patterns 101: Advance Block
Candlestick patterns like the Advance Block are all about short-term reversals in the trend of the price. When you have a period of significant selling, knowing when to go long is important. However, the amount of confirmation needed to go long can vary. With any setup, it’s about risk, reward and probability. The better the…
What Does the Options Market Know About Micron Earnings?
There is a fair amount of randomness to an earnings announcement and Micron Technology Inc (NASDAQ: MU) is no different. It seems that price does what it wants a lot, which can be really difficult to trade. At TheoTrade, we use the Expected Move Indicator to understand market expectations. However, you still have to make…
Markets Pause as the Debt Ceiling Trade is Engaged
With the first stage of the debt ceiling kicking in on September 30, what does that mean for the market? Well, today's neutral finish didn't provide a heads up, but the underlying trade in banks, bonds, and the dollar may be tipping their hand…
What is the Options Market Saying about Debt Ceiling?
The first hurdle in the debt ceiling saga is the September 30 deadline for funding Federal agencies or face a partial government shutdown. This would mark the second partial shutdown in the last three years. While the threat of an outright default is likely a non-issue, it is interesting to see how traders are positioning…
Candlestick Patterns 101: The Candle Body
History of Candlestick Patterns Candlestick Patterns were originally created in Japan during the 1700’s. They were used as a means of trading rice warehouse receipts—which represented the first-ever futures contract. They are referred to as candlestick, or candle, patterns because of the way the open, high, low and closing price is represented graphically. Candle patterns…
Candlestick Patterns 101: Dark Cloud Cover
What’s more ominous than dark clouds forming on the horizon. The temperature drops and the winds pick up as you sit back and await a torrential rain, hail or worse. If the skies turn green, you know that you better run for cover. From a price standpoint, what is the equivalent of dark clouds on…
SoFi Eye’s Bank Charter as Option Traders and Analysts Buy
The addition of a bank charter for SoFi only adds to the company’s “flywheel” marketing approach. SoFi uses their UI/UX tools to draw customers into other products within their ecosystem. The addition of bank balances only helps with the add-ons because of the share of wallet already being captured. SoFi Technologies Inc (NASDAQ: SOFI) advanced…