Predictions For 2017
Predictions are tough to make. They are especially difficult with central banks manipulating asset prices. Excess liquidity does wonders to stocks no matter what the individual company’s fundamentals looks like. That being said, I still want to make some predictions in this article for 2017. They may not be more accurate than the typical punditry,…
Buybacks Down, Optimism Up
The equities market has rallied on the anticipation of the Dow hitting 20,000. It’s an irrelevant factor for fundamental investors, but it matters to traders who look to push the market higher. The market has looked to push higher since the election as momentum reigns supreme. It’s a weird concept to say that the market…
Drop your Probabilities, Increase Your Profits
Many of you know the concept of selling high probability iron condors. However, in this past year the juice hasn't been worth the squeeze. Here are the two things that you want to be aware of in this current market environment...
Italy Kicks The Can
This week Monte Dei Paschi, the weakest Italian bank, is under renewed scrutiny because it still needs to raise money to recapitalize and get rid of 28 billion Euros in bad loans it has. The reason why I focus on this issue is because of the two risks in play. The first is the potential…
Trump Optimism Shown In Markit Index
As the year ends, not much looks to be changing in the markets as volumes decrease and data points become less frequent. The prognosticators have made their picks for another bullish year in 2017 even though stocks are at near record high valuations. We are in ‘wait and see mode’ on whether the optimism is…
Trade Logic means Everything
What's more important than direction is whether or not the logic of your trade makes sense. In tonight's video you will learn one way to determine if you're using the right trade logic. When you have the right trade logic whether you're right with direction becomes secondary...
The Risk/Reward is Ripe! Get On These Trade Ideas
Bonds have been sold hard recently and now we know who the sellers are. The Chinese are no longer the largest international US bond holders that title now belongs to Japan. The interesting part of the story is that the Chinese need the money to plug holes in their own financial system In other words…
2017 Will Be Like 2016
The optimism about earnings and the economy heading into this year is higher than last year even though the Fed is more cautious. The Fed expected 2.4% growth in 2016. This likely won’t be met looking at the numbers which have come in so far. For 2017 the expectation is for 2.1% growth. There isn’t…
Currency Jenga Game
The game has changed ever since Trump was elected and inflation started to pick up. This is a risky proposition because the system is unstable. The only reason why it looks stable today because central banks are doing everything in their power to make it look good. However, this very action is what makes it…
Facebook Is Playing Catch-up
Facebook continues to copy other social media apps with its new announcements. If almost every single new feature is a copy of another app, then it makes you wonder how long it can stay on top of the social landscape. There is a trap you may fall into when thinking about these new changes. For…