Death of the DOW? Not yet.
The Dow has been the poster child for the post-Trump rally moving up 2,000 points since the election. Since all the non-professionals look to the Dow for market sentiment let's take a closer look at the index...
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…
Monte Dei Paschi Is The Key To Europe
If you thought the Monte Dei Paschi story was over, you underestimated the situation. It is only getting started. The results of how this plays out will have wide ranging ramifications for other troubled banks in the future. In the European stress test, the bank came in last place out of 51, so it will…
Bitcoin About To Make Record Highs
The price of Bitcoin has rallied to above $900 as it closes in on the record highs it made in 2013. For those who compared Bitcoin to the tulip bubble, this is tough to understand because it should be at zero by now if it was a fad. Fads don’t recover their losses and they…
Poor Data: Weak Economy?
The Dow has fallen two days in a row for the first time since the election as negative data was able to temporarily stop the Dow from reaching the much heralded 20,000 level. It’s quite amusing to see the media and traders get disappointed from such a meaningless number not being reached. I think the…
Monte Dei Paschi The Zombie
The day the zombie bank Monte Dei Paschi is rescued is finally upon us. The bank tried to raise 5 billion Euros through the private market, but failed. The bondholders’ debt for equity swap only netted the bank 2.45 billion Euros. The Qatar sovereign wealth fund decided not to make a 1 billion Euro investment…
Using Multiple Timeframe Charts
In tonight's video let's take a look at how you can use multiple time frame analysis. Whether you're new or experienced you can learn some best practices for using multiple time frames with any stock, index, or ETF...
Should You Sell Stocks Now?
In this article, I will further specify the level of bullishness in the market which, I feel, doesn’t represent reality. It has made sense to be bearish this year, but logic doesn’t matter when your contrarian portfolio has had a bad year. It doesn’t give you any solace. I have been wrong all year long.…
Italian Bank Update
Italy is coming closer to the inevitable government bailout of the world’s oldest bank Monte Dei Paschi. The situation was always bound to happen at some point, but the actual nationalization process could start in the next few days. I mocked the possible loophole on how the Italian government will be able to bailout Pasche…
Understanding VIX Options
Understanding VIX Options