Here we go again- to the downside ?
The stock market is in a correction. How deep and penetrating this correction will be only stock pundits and fortune tellers can hawk those numbers to you. As a Technical analyst I can only show you where it has been and what you can expect based on the charts itself. We don’t predict the stock market, nor we ever attempt to read the future. However using Technical analysis lots of nonsense... [Read more]
The economy has stalled.
by Robert Reich Friday’s jobs report for April was even more disappointing than March. Employers added only 115,000 new jobs, down from March’s number (the Bureau of Labor Statistics revised the March number upward to 154,000, but that’s still abysmal relative to what’s needed). We need well over 250,000 new jobs per month in order to begin to whittle down the vast number of jobs lost in the... [Read more]
Uncertainty kills the Stock Market
Uncertainty kills the Stock Market- A bad unemployment report adds to it. There was no surprise. The economy has been stalling for sometime. Various indicators and reports pouring the doom and gloom for several weeks. Retail sales, consumer confidence, home sales and manufacturing reports have been lackluster lately. After a three month of optimism we are again descending into the era of economic malaise.... [Read more]
How to hammer SPX orders home
Having difficulty getting in and out of SPX orders? Frustrated with executions? Calling your order desk and debating them only to hear that you to need execute orders at the bid and ask prices ? What a bunch on nonsense that is. Well you are not alone. If you are going to trade SPX, RUT or NDX try this method it will work. SPX was a nice product to trade till they changed their strategy of making money.... [Read more]
Why the current stock market selling off ?
The market is in the hands of bears today.They have an upper hand. No use fighting this. We have been talking about it for most of this month. We know what is causing it. Let me recap the same thing again. It was war drums that spiked Oil futures and the gas prices went to $4 and that started taking its toll sooner than later. That in turn undermined consumer confidence and business owners and they... [Read more]
The market is selling off ! Why ?
The market is selling off. All major indexes are down 1 or 1.5 percent and VIX has jumped up 1.5 points. Most of the leaders are under pressure and they are down from $5 to $15 at the moment. The sell off may continue here, unless we pull up over 1400 on SPX and close higher. Here is a intraday chart on SPX. Please click to enlarge. Feds dependency may have come to a halt for this stock market in... [Read more]
Stocks Window Dressing or what ?
First quarter of the year is nearly over. Here comes the part Window Dressing ! Fund managers, Hedge funds, and miscellaneous investors on wall street are invigorating their windows by selling off some the stocks and buying some which have fallen by the way side. The quarter should look very good because the stock market has such a wonderful run so far this year. The pull back seen today is just... [Read more]
Market pulling back a little
Just a little not much.. This the intraday chart on SPX, please click to enlarge. The market is certainly pulling back here and the upside momentum is on hold. SPX is down 12 points and RUT down 11.5 at this writing. The stochastic is showing a curve at the top in lower pane on daily charts, and the general market is trading to the downside for the time being. This is what we wanted to see, some kind... [Read more]
The market is up relentlessly AAPL declared dividends.
The market is up relentlessly. The SPX has been up relentlessly for 10 session so far as you can see in the chart. Please click to enlarge. Everything is up with it from the opening bell. Notice on the chart how we are in the upper range of the Regression channel on the daily charts. It plots the market valuation and now we are nearing to the upper limits on a year basis. Things are are good , in... [Read more]
Why the current stock market is rallying ?
Despite high gas prices and other constraints on the economy stocks rallied hard towards fresh highs. The reason : News, good news. the economy is still in shambles and delicately poised to lose steam if gas and oil prices keep hovering higher. But the stock market is rallying hard driven by the news. Click on the chart to enlarge. Retail sales came in strongest in the last 5 months. That was at... [Read more]
AAPL : What goes up must come down
What goes up must come down Law of gravity, law of nature and the law of stock market. Nothing stays up forever. You throw a ball it comes down, you have an apple in the tree it falls and higher it is bigger the fall. This is what is happening around a stock named AAPL and the general market. A blowout stellar earnings on January 25 and the stock gaps up and runs from 454 to 525 in just a matter of... [Read more]
S&P500 making a Golden Cross
What is a Golden Cross? It is an event when a 50 day moving average crosses 200 day moving average from underneath. It has all the bullish connotations. That means the market is bullish and that the long term outlook also has changed from sideways to a slight slant to the upside. If the market advance continues than both 50 day MA and 200 MA will keep rising side by side. Take a look on January 30... [Read more]
Current Stock market in a bullish channel
Since the start of New Year stocks have been barreling to the upside killing bears and short sellers alike in a hurry. The shorts have disappeared completely. The earning season is also reaping rewards. Most S&P 500 companies have hit high marks this month and continue to dazzle institutional buyers. AAPL, NFLX and others have blown street expectations. The Feds have also decided to add... [Read more]
How to trade a Time Bomb Butterfly
Dan Sheridan of CBOE fame coined the phrase " Time Bomb Butterfly" few years ago. Now its like a normal phrase on the Internet. I get get asked all the time do you trade any time bomb butterflies ? Yes we do, in fact we learned the " craft" from Dan Sheridan in many ways. Dan is a great instructor and with a zest of driving home a point. So whats a Time Bomb Butterfly? Its an out of money Butterfly... [Read more]
Stock Market is Trending upward
The market just crossed a major hurdle the 1300 level for the first time since August 1 2011 almost five months after that horrible Summer. The trend is not visible to most untrained eyes. Take a look here is this a channel? Was it visible earlier ? No. That is what happens when data is added to the charts patterns emerge and they take hold of the market direction. If we close above 1300 levels that... [Read more]
What is the stock market doing ?
The stock market seems to swoosh past many investors these day as it clears the resistance of 200 day moving averages. Now investors are chasing the bus literally. It has gone past them quickly. Last year was no picnic in the park , but this year is turning out to be much fair to the bulls than the bears. But when they came back from vacations and what not, and they saw the tail lights of the SPX as... [Read more]
Why Netflix stock is on the rise?
Shares of Netflix have rebounded 40 percent in just 5 session in 2012. Why? There is a story behind it. The worst performing stock of 2011 that dropped from 300 to 67 in just under 3 month period is now making a comeback. You know in stock market the memories are on short lease. Those who get burnt get out and curse and never come back, but those who don't get burnt, take another stab at the perpetrator.... [Read more]
Free Calendar Trade Closed
The above is display chart of the trade when it was placed. Its has changed quite a bit now,because the stock ran up 25-30 points over the holidays. Happy New Year. Our FREE trade posted here on this site few days ago below is now closed. The stock ran up 30 points over the holidays, something I did not expected and but today we are still making money in the amount of $700 for a few hours of work.... [Read more]
Happy new year
Happy New year to you. Lets see how 2012 goes. Last year was no bed of roses as far as trading goes. One of the most difficult years I have seen in stock market. But we still made out well. There is no doubt had we had a better stock market to trade we would have lot better. Now again I am getting into " couldas" and " shoudda" and that does not applies. There were times when I had to stop trading.... [Read more]
Free Calendar spread Options trade
There are many ways to skin a cat. Some option traders take no sides, they chose to fight battles they can win and win by a great probability on their side. Why risk money on directional trades like buying stock? Buying stocks is inherent with downside risk and one mistake and it all ends in losses. You have seen that how that goes. This has been a tough year for most professional traders and Hedge... [Read more]
How to Hedge Index options trading- Protecting Profits and Trading Capital
How to Hedge Index options trading- Protecting Profits and Trading Capital Its a well known secret for fund and portfolio mangers. Fund Managers regularly spend a portion of their trading portfolio protecting against eventual losses in case the markets drop suddenly causing pain and havoc to their portfolios. Its called portfolio insurance, and its like a monthly bill, just like your homeowners fire... [Read more]
Is this my Santa Claus Rally?
Where is my Santa Claus Rally? I want to know. Its all discussed endlessly this year. Today the market broke out from its strong Flag like pattern formed since December 5, 2011. Take a look here. We talked about it last night in the daily video. The market tried to rally last week and ended up fizzling out. There barely 10 days left for the stock market to show up with a Santa Claus rally or may... [Read more]
Stock market is Pavlov’s dog
The description couldn't be better as Scott Blier founder of create Capital says “ Ben Bernanke is like Pavlov and Wall Street is like Pavlov's dog”. The dog is trained to respond the way the master rings the bell. As long as Bernanke is there to pick up the pieces, the market is there to respond and maintain its levels based on hopes. This is seen time and again. Since the US economy is improving... [Read more]
Market trading on European Politics
Market trading on European Politics The market has been fleeced by whats coming out of Europe. Its been months one thing after another which keeps nagging the market trajectory. The situation seems to get better and than it reverses back to bad and the headlines keeps driving the market. Basically its the Europe headlines the way they blow and take the market. When the market is not sure volumes thin... [Read more]
A Bull market on its knees
Equities dived again and we saw one day which carried the bulls and than short sellers started hitting hard and drove the prices to the 200 day moving averages. All the indexes are sitting on it. If we bounce here, market my have a run if we break down here there is no telling how low this will go. When looking at the charts I noticed we are making an inverted J type pattern. This is usually a bullish... [Read more]
Current Stock Market forming a cup
Will there be a handle? Looks that way doesn't it. The pattern is nicely complete with a nice cup formed over 2 months. First the downside of the cup that touched the 200 day moving average and than a slight bounce and the formation of the right side of the cup shaped pattern. Given below is a daily chart on SPX complete with a cup shaped pattern. This is a bullish chart pattern and that usually leads... [Read more]
Debt default averted, Stocks keep plunging
Senate passed the debt ceiling bill today with a bi-partisan vote 76-24. This takes off the threat of US default on its debt obligations and possible credit downgrades which may still happen. The world will live and US markets will live ,because today is August 2 , 2011 and if this bill had not passed, it would be another catastrophe we all have endured. The stock market has been falling since July... [Read more]
S&P downgrade massacres markets
S&P downgrades US Treasury debt for the first time in history sending financial markets into turmoil. The market plunged 300 points at the open and now is extremely oversold here. This downgrade was no surprise and the wrangling in Congress over debt ceilings last two weeks have contributed to the negative outlook. S&P further downgraded Fannie Mae and Freddie Mac bonds and 32 banks associated... [Read more]
Hiring grinds to halt and stocks dive
All of us saw the bruising debt crisis debate? All of us saw the eventual US credit downgrade? Specifically what you feel it did to the thought process of consumers and employers? It spooked them. In a fragile monetary economic climate any such detrimental stimulus towards the senses does a single issue only: It freezes the decision making process. Both consumers and employers froze in their tracks.... [Read more]
What is the best site to register for Day Trading?
I really want to get started in Day Trading and make money. But there are so many sites out there and I am not sure how to pick one. I have small account and I am starting with just very little money. I just want to test the waters and dip my toes and get a good feel how it works. I don't like to pay a lot of extra fees and cost to brokers. I wanna know how the capital gains taxes work for day trading... [Read more]
Investing in stock Index options
The stock index options are the options which are not a single stock but an index which comprises of many stocks altogether in pool. They were introduced in 1981. The investors and speculators invest in stock index options in order to lower risk to the entire market or some parts of the market without a single stock. By investing money in the stock market, you may be able to pay off some your debts... [Read more]
Why the current stock market rallying ?
After a long and brutal Summer, its about time to get back at the Golden goose and make it lay some eggs. The Golden Goose almost got slaughtered in July and August, but never harmed. It always manages to operate its way out of it under some pretext and alibi. Well that is true. Fall is here and markets usually take off when it starts getting chilly outside and vacations are over and traditionally... [Read more]
Current stock Market action
Here is what it looks this week as European debt crisis gets a fair shake by 17 Eurozone countries. Expecting some kind of long term solution at this point. As a result stock market rallies hard with leaders going up 10 to 15 points in today's action. There is however resistance above with 200 day moving average and the market is getting overbought here in the short term. Both the 50 day and 21 day... [Read more]
How to Hedge in any markets 5 Strategies
How to Hedge in any markets 5 Strategies Jay Pestrichelli describes why investors should hedge in any markets. Hedding can be done with options or simple strategies. if you are a portfolio holder hedges can be done with married puts and selling options on your stocks. Todays volatile markets have large swings on daily basis becuase $vix is high and the portfilio can swing wildly depending on the... [Read more]
Stocks surge as US economy grows 2.5 percent
Stock are surging in broad based market rally on news about Europe's debt crisis that has been adequately handled by 17 Eurozone countries with a massive $1 billion plus Euro package. Greece debt is getting addressed which has been harking our stock market for the last 2 years. It is seemingly possible that bondholders may have to take haircuts of as much as 50 percent. Efforts to recapitalize... [Read more]
Trading volatile markets and Euro debt problems
This nice rally in October made the case for further upside to the market. The debt crisis in Europe seemed to end with 17 member Eurozone coming to the rescue with a $1.4 billion in aid package and giving a helping hand to Greece to avoid a disastrous situation. But the Greek's Prime Minister shocked the financial markets by asking for a referendum on the deal. European leader were quick to show their... [Read more]
Super Committee Fails and stocks dive
The Super committee entrusted to cut debt spending 1.2 Trillion dollars has failed. Its deadlocked as expected and we are back where we were in August. Stocks have taken a cue in the past and will go down for few more days. Market does not like this kind uncertainty on top of European debt woes that have ringing alarm bells all Summer long. Now there will be mandatory cuts as a part of deal negotiated... [Read more]
Stocks dive 7 straight sessions
Its been rough this last week in trading stocks or equities. For seven straight sessions the market has gone down. SPX has plunged from 1260 to 1158 just about 100 points in a week. That is an extreme and shakes up weak hands, people give up and sell and take a loss. But what it does it creates extreme oversold conditions and than the market rallies and rallies hard. The McClellan Oscillator is now... [Read more]
4 Stocks to Remember in December video
WOW! Are we back in the saddle again? Not so fast. There will be time we will, ride those wild wild horses, they couldn't drag me away. That was a line I stole from Rolling Stone's song and distorted it. Actually butchered it. The market crashed last week and it looked like the world will end. No the market will never end in your and my lifetimes. It has been there for the last 100 years or so and... [Read more]
Stock gap up – a follow through day?
There was a rally on Monday and the marker rested on Tuesday and today the market gaps open heavily on the upside. All the stocks gap up likewise. Its a work of professionals. They are jockeying this beast to heavens, Last week it was being pummeled to death and this week everything is hunky dory? I mean if you have been in this game for sometime like I am , how long it takes to recognize the same... [Read more]
What is the best stock trading site for a beginner?
I'm 18 Through years of age, except a few thousand, actually trying to find alternative ways to ensure financial stability in the side of a good race. O? Do talk about the investment? N in actions before, but not quite sure what I'm doing. ? A qu? site be? at the best for me? to acquire shares, and c? mo decide what? stocks to buy? Read More →
