Talking Currencies On A Sleepy Summer Friday
Let’s talk currencies because it’s Friday and there doesn’t seem to be much else to talk about (it’s the whole summer doldrums thing). Have a look at the yen and the yield on 10-year Japanese debt: So the yen’s trading at 100 and is on a tear against the dollar. It hit 99.84 at one…
Finding Opportunity in a Boring Market
Where to find opportunity in during the dog days of summer in the markets? Let's first do a sector review and see where the sectors are and see which sector(s) are showing opportunity. From there we can look at individual stocks for trading opportunities. In tonight video we find a few potential trade set ups...
Calling Crude Prices: May The Farce Be With You
We weren’t going to write about oil again today but while perusing analyst commentary it occurred to us once again that no one has any clue whatsoever where prices are going. It’s turned into something akin to astrology at this point and it kind of goes back to something else Bloomberg’s Richard Breslow said today:…
Three Things For Thursday: Wal-Mart, Oil, ‘Dud’ley
Well, it certainly feels like summer. If it weren’t for the Fed’s increasingly schizophrenic policy banter we’re not sure there’d be much to talk about. Thankfully there are a few notables today. First off there’s Wal-Mart which is riding high Thursday after reporting its eighth consecutive quarter of rising same store sales. That may sound…
$100 Billion Pile of Risk
For the last 30 days the markets have been in a historically tight range. Whether the market breaks out to the upside or the downside TheoTraders need to be comfortable with the risk they have on.
Markets Call Fed’s Bluff After Minutes Reveal Split
One of the things we’ve discussed at length in these pages of late is the extent to which markets have begun to do the opposite of what central banks intend. The latest examples include the reaction in the aussie and the kiwi following RBA and RBNZ rate cuts: Well in what feels like a replay…
Watching The Dollar As Fed Minutes Loom
As we discussed on Tuesday, the FOMC appears to be dusting off the May playbook as the NY Fed’s Bill Dudley suggested that a September hike is indeed on the table after all. Obviously that’s a pretty silly contention - they’d be out of their minds to hike before the election. Still, it was enough…
Conditions for Reversals and Long Calendars
TheoTraders know how to identify situations where stocks are at an exhaustion and volatility is going to increase. What we like to do is go long calendar spreads in these situations. If you're new to spreads and calendars check out the Options 201 class: Vertical and Calendar Spread Essentials. You can get this 5 part…
Fishing For Growth In Maine
It’s never fun to watch people lose money. That’s why we find it irksome when someone brands us “permabears.” We don’t enjoy triple-digit declines in equities and we’re not going to enjoy it when yields finally explode higher and every retail investor who owns a junk bond ETF suddenly realizes what all those pundits meant…
“September With Risk To Never”
Perhaps SocGen was right after all. On Monday we highlighted a note in which the bank suggested that the current environment in which stocks and bonds rally in tandem is “as good as it gets.” Of course Monday’s market moves begged to differ as stocks continued their inexorable push higher. Well on Tuesday we got…