Finding Opportunity in the ETF Market
With Friday's gains, the Dow Industrial Average snapped its 5-day losing streak as earnings helped buoy stocks on the day. However, if we look back in the last 2 weeks the broad based S&P 500 index literally did not move. In this weekend edition let's hunt for the best opportunity in today's markets. To learn…
The reality of earnings and a quiet market
Treasuries slumped, as bond yields surged sharply to the upside for the 10-year to around 2.42%. The tech heavy NASDAQ rebounded after posting its worst performance of the year yesterday (falling from record highs reached last Friday) amid a jump in semiconductors and ahead of NFLX earnings. All eyes on the European Central Bank tomorrow…
Buy Volatility in the Zombie Markets
Stocks posted small gains on Friday and remain near record all-time levels heading into the start of earnings season next week. Financial earnings grabbed the headlines and were mixed, but still posted solid returns, led by a jump in regionals. Large cap banks rallied as well as JPM posted solid returns, while BAC and WFC…
Placing a Trade in the Emerging Markets ETF
The Nasdaq managed a 4th consecutive record close despite the bumpy ride in biotech following comments from Donald Trump on pricing. Oil prices recovered after two days of hefty declines, despite bearish weekly inventory data. The story of the day was Donald Trump, holding his first press conference since July 2016, targeted drug pricing, sending…
Asset Rotation like a Game of Musical Chairs
Stocks ended mixed today as the asset rotation game continues to play out. Today's game of musical chairs saw energy stocks leading the declines amid a pullback in oil prices (nearly 4%). Also, financials pulled back ahead of big earnings this week from banks JPM, WFC, BAC (on Friday). The Nasdaq hit a new all…
With Markets Near All-Time Highs the Russell Stalls
In this extended weekend video join Don Kaufman as he explains current market correlations and the opportunities in the market next week. Included in the video is the only selling premium strategy that is working...
Traders Throw Caution to the Wind
In light volume trading today traders have thrown caution to the wind. Just remember risk is always at the highest precisely at the time it seems like it's the lowest. Conversely when traders are panicked out of stocks that's the time to be buying. Let's take a look at the markets where the risk seems…
Black Swans and Fat Tails, goodbye 2016!
Lots to talk about in this extended New Years edition. Using thinkback we will take a look back at what worked and what didn't in 2016. Then let's look forward to 2017. The market enters the New Year with these 3 major headwinds that you need to know about...
Correlations Snap Back; Is the Rally Over?
On a seemingly quiet trading day between Christmas and New Year we are seeing correlations snap back. Today's decline, although not significant on a percentage basis, was significant in terms of the numbers of decliners far out pacing advancers.
Probability, Trade Logic and a Happy Holiday Wish
Happy Holidays to you and yours from everyone at TheoTrade. In this extended Holiday weekend edition we will look at probability and trade logic. High probability does not equate to consistent returns in the market. TheoTraders need to think about the trade logic and their risk management plan. You can be right or wrong in…