A Market in Denial?
Lots of market activity today. The FOMC announcement was no surprise and had no impact on markets. Good news about an effective drug to treat covid-19 sent the market higher. Then after the close good earnings announcements from FB, MSFT, and TSLA sent markets even higher. The IWM ratio and QQQ vs IWM pairs trade…
Correlations are High, but Divergences are Higher!
A great lesson today on the right way to be short this market. Despite being delta negative (short) the market Don's P&L was flat today on a massively up day in the market. Plus discover one of the greatest opportunities in the market today. Find out more in today's video newsletter update…
Are Markets Approaching a Breaking Point?
The economic blows keep coming-- --earnings are brutal, guidance pulled --20% unemployment min with another 4.4 mill jobless claims --PMI crashes around the world --6.4% of mortgages in forbearance, 764 billion unpaid principal --Durable goods -14.4% --Google slashes marketing budget 50% --and the Nasdaq is only down -1% YTD! Here comes the FED meeting-- --expect…
Are Earnings Trades Worth the Risk this Quarter?
The S&P continues to ping back and forth between our gravity points. Hitting one yesterday on the selloff to rally back and come only a few points shy of hitting another one today. One thing we should be concerned about in today's rally is this was the lowest volume day since Corona Crash started. I…
All is Not Well in the Markets
The financial markets are not well! Futures markets across the board are seeing very light volume. The front month oil futures contract went negative for the first time in history. With the world running out of storage for oil people were being paid to take the oil. The VIX is rising as traders see all…
The Bad News Rally?
The stock market continues to shake off bad economic news as the Fed continues to pump more money in expanding their balance sheet by over $300 billion this week alone. Is long term investing and fundamentals dead? Even the oracle of Omaha is quiet, but trading is alive and well. There's much to discuss on…
The End of the Rally?
Stocks back down while bonds back in action get bid up today. Financials continue to get hammered after dismal earnings announcements. Energy down 50% this year. So, where's the next opportunity? We look to consumer staples and big tech in tonight's video newsletter...
Will Earnings Season Matter?
Major sector rotation today as investors pull out of financials and into tech stocks. Earnings season begins with JPM and the options market is forecasting huge volatility. Here's the opportunities we will be looking at during this earnings season…
More Fed Stimulus! How Bad are Things?
Thursday the Fed announced unprecedented intervention. In short they are buying everything, but individual stocks now and that may not be too far behind. In the midst of all of this it's important for you to not let the news interfere with your opportunity to profit during these times. The S&P 500 continues to ping…
A Classic Volatility Trap
The market continues to ping back and forth off of gravity points creating what Don calls a volatility box. We've seen 2 volatility boxes in recent years that use gravity points to ping off of. Here's what to expect in and out of a volatility box…