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 are Sectors Saying about the Risk in the Market Right Now?
In tonight's video, we start by highlighting a clear message sent by sector leaders and what that likely means for the broader market. Then we discuss the critical target price levels we're watching and trading in equity indexes along with a warning from the bond market we need to continue monitoring…
Volatility On the Verge of Exploding!
Stocks begin to make another leg lower today. The key thing to watch is the weekly SPX expected move. The SPX is trading below the lower range which means dynamic hedging kicks in and can take the market even lower. This could be a make or break week for the markets. Watch this crucial video…
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…
Will Rising Interest Rates Pressure Markets?
—Wild range on the week—Bonds down, rates up.—Bonds doing what the FED did not—Evergrande risk QQQ vs SP500 Get Your Volatility Game Face On!--QQQ vs SPY weekly EM--Intertest Rates VS. Tech--Tech NVDA, GOOGL, MSFT, FB--Home Depot--Financials SPX Expected Move----last week EM-- 95.29--next week-- 70.88
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…
Relief Rally Surprises after the Fed Day
A bearish sell-off Monday was met with buying ahead of Wednesday's Fed Day and now one day later, markets rallied even higher continuing a surprise support bounce from the daily chart abyss. In tonight's session we discuss which stocks are leading the market higher and which key name continues to weaken in a new downtrend…