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Market Commentary

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There Is The Ideal, And Then There Is Reality

As one writer on TraderPlanet said, “Message For The Market – Slow and Steady.” The point is clear – until we have something extraordinary, the market will chew forty times, swallow slowly, and digest the daily stream of easy news. The next phase of the market is all about central bank policies around the globe.

  • Global equities set a new record high and bond yields sank to fresh lows on Thursday as investors positioned for an extended era of cheap money ahead of the European Central Bank's lo...
Feb 26, 2015
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Long-Term Breakout In Heron Therapeutics

Two large and unusual trades hit the tape on the ARCA exchange in Heron Therapeutics on February 24th and 25th. The Apr $12.50/$17.50 bull call spread was put on a 7,000 times for a $1.28-$1.50 debit. The breakeven point on these massive trades is between $13.78 and $14.00. Call to put ratio was 10:1 and call activity was 75 times the daily volume on February 25th. There was also a seller of 1,000 Mar $10 puts for $0.60 on the same day .

Focusing on the April trades, the $337M biotech company...

Feb 26, 2015
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The Fed Calls a Fair Game

This has been an interesting week with Fed Chair Janet Yellen testifying in front of a joint committee of Congress about monetary policy.  This is a bi-annual meeting where lawmakers ask the Chair about policies, concerns, fiscal ideas, and other areas helpful to lawmakers. 

This week’s “meeting of the minds” had everyone’s eyes/ears glued to Yellen – would she give a hint about rate hikes?  Last week’s January Fed meeting minutes were completely dissected, but nothing was abundantly abstract...

Feb 26, 2015
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Message For The Market – Slow And Steady

On Tuesday Fed Chair Janet Yellen went before the Senate Banking Committee to provide semi-annual testimony about the economy and the Fed's role in it.  The central question for many market participants is whether the onset of Fed rate hikes, or "lift off" is near.  Many metrics the Fed had previously cited as thresholds that needed to be crossed for rate hikes to begin have already occurred. 

For example, as noted in Yellen's opening statement, "...The unemployment rate now stands at 5.7 per...

Feb 26, 2015
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ESH5: More Of The Same, With A Slightly Different Result

Yesterday

The S&P500 mini futures made a new high again yesterday the 11th time since the beginning of February that the market has made a new record. This time it couldn't hold the gain. The futures reached 2117.75 at one point, a price that has never been seen in the ES before, but closed at 2110.25, 3.50 points below the previous close.

It was another very narrow range day . The volume was slightly higher than yesterday, but still well below average. The ESH5 is now up only three points ...

Feb 26, 2015
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Featured Stories

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Unlocking Your Phone Is Legal Again -- What Does It Mean For The Wireless Carriers?

Believe it or not, it was illegal, until very recently, for you to unlock your smartphone and take it from one carrier to another.

Yes, illegal in the traditional sense. Thanks to a quirky interpretation of the Digital Millennium Copyright Act , those who unlocked their phones, even as recently as a year ago could wind up behind bars for an unfathomable five years. That’s a long time for something as innocuous as using your property the way you want to use it.

But in 2014, President Barack Ob...

Feb 24, 2015
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Options Trading Strategies: Lessen Volatility In Your Portfolio

Random price movements leave us with very little edge when it comes to reading the charts and technicals.  Never mind fundamental analysis, which is simply impossible to explain how stock can move violently after a news event.  The market is simply designed around accumulation and distribution, seen very clearly on a price and volume chart.  Yet, when these buyers and sellers are pulled in each direction by the market, there is an uneasy feeling about participating.

The erratic behavior in pr...

Feb 23, 2015
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A Dramatic Year – 2015 Financial Collapse?

The European Central Bank recently announced a trillion- dollar package to fight inflation. Whatever these central banks do will not have any effect on the world, short-term.

The ECB program involves printing 60-billion euros per month, which is nearly three-quarters of a trillion euros per annum, and they will start in March 2015 and end in September 2016. Their goal is an inflation target of two percent. The program involves the buying of euro-denominated assets. A bankrupt Europe does not...

Feb 23, 2015
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How Hidden Flaws in Your Decision-Making Affect Your Trading

Too many traders, trading psychology means dealing with negative emotions like fear and greed.  We all know that negative emotions can cause trading difficulties.  However, many of us don’t know that the way we think can cause big problems, too.  We can be blind-sided by our thinking and decision making—especially when we use our normal, everyday problem-solving approaches in trading.  These are traders’ mental blind spots, and they crop up in every trader’s trading.  The irony is we usually ...

Feb 20, 2015
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The Life-Cycles of Stocks Part 1: Tesla Motors

In many ways, stocks are like people. They each have their own “life-cycle” of birth, growth, maturity, and eventually death.” What sets stocks apart from humans, however, is that some of the best companies are able to have several life-cycles, as they continually re-invent themselves by developing new, innovative products that in turn drive a new sales cycle and, hence, a new price cycle in the shares of their respective stocks. There are certain common characteristics of “sentiment” that dr...

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