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Market Commentary

More Market Commentary

What’s Not to Like About the Market?

The market overall had quite the day yesterday and how about that NASDAQ? Hitting a 14-year high is quite impressive, given that the index fell so far from grace in 2000, just 14 short years ago. Perhaps the NASDAQ is providing a clue as to where the money is beginning to flow. Better yet, a clue as to where the money is returning.

It appears today is a follow up day for the bulls. Right out of the gate, the market is pushing hard into the green. So much for the various floors in the recent d...

Aug 19, 2014
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Unusual Options Activity Seen In Kate Spade & Company

Kate Spade & Company recently reported earnings, and news of contracting profit margins sent shares tumbling over 10 percent. 

Unusual Options Activity

At least one institution thinks this move was overdone. Monday’s session saw a trader come in and buy 5,000 KATE Sep 33 Calls for $0.95, paying the ask against 700 contracts of open interest.  

Huge Position

This order has the potential to control half a million shares of stock, or about a fifth of KATE stock’s average daily volume.  With a t...

Aug 19, 2014
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Trading When Moving At Warp Speed

In today’s market environment, it isn’t the one who “has the money” that controls the market direction. Instead, it has changed to the one that “controls the information,” controls the direction of the markets.

Instead of reading an article to see whether it could be bullish or bearish for the markets, we have created computers that do the reading and then trading for us.

When these algorithms read something that they are programmed to be deemed bearish, they automatically remove any bid an...

Aug 19, 2014
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December Silver Futures: Trading Idea August 19, 2014

December Silver Futures a Selling Opportunity on More Price Weakness

 See on the daily bar chart for December silver futures that prices are in a six-week-old downtrend and have just hit a two-month low. The bears have the near-term technical advantage and have downside momentum on their side. A move below chart support at Monday’s low of $19.535 would become a selling opportunity. The downside price objective would be $18.50 or below. Technical resistance, for which to place a protective buy...

Aug 19, 2014
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Bear Pennant Makes Eurodollar A Nice Short

The euro's value to the dollar was one of the more bullish currency pairs in the first half of the year, but the trend reversed in May. The chart exhibits the Wall Street adage that “markets take the stairs going up and the elevator going down.” I don't see any technical evidence suggesting the downtrend is near an end.

The Chart

Since the beginning of August, EURUSD has been tracing out a small bear pennant. This comprises a tight triangle shape that characterizes a period of short covering...

Aug 19, 2014
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Featured Stories

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The Professional Traders Opinion: Russian Sanctions Smoot-Hawley Revisited


Russia was once described by Sir Winston Churchill, as “a riddle wrapped in a mystery inside an enigma.”  Those words, spoken in 1939, eloquently described the Western sense of Moscow as inscrutable and a menacing country that plays by its own rules; perhaps they are no different now with the extraordinary exception that today’s Russia is dressed in diplomat’s pinstripes folded around a pugilist’s muscle with a checkbook of an oil baron.  

What’s more, today Russia, along with China, Brazil, I...

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Go Long: Concerns Over the Chinese Yuan’s Weakness Are Overblown

On March 6, 2013 we initiated a long recommendation for our clients on the Chinese currency, the yuan, through the purchase of offshore, yuan-denominated bonds an exchange traded fund.   DSUM closed 2013 with a 6.32% gain, the year’s best-performing bond instrument on a risk-adjusted basis, compared to a dismal performance of -4.83% for the average emerging market bond fund.

After this stellar performance, this year’s weakness in the yuan is no surprise to us.  While the U.S. Treasury and th...

Aug 18, 2014
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Trading Psychology: Clear Your Head

As traders, we try to maintain a high level of concentration and performance at all times. The focus is on trading plans and processes, risk and reward, indicators and charts, coding and strategies, and about a million other possibilities at any given time. Truly, it is impossible for any human to keep track of all the information available.

When you get to the point where nothing makes sense it’s time to look away for awhile. I call this “data fatigue” and it occurs on many time frames. In t...

Aug 18, 2014
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Alternative Assets: The Coming Silver Short Squeeze

Last year, total mine production of silver was 819 million ounces, but demand for silver was 1.1 billion ounces.

Therefore, there was a 262 million ounce shortfall in silver. Thus far, the shortage has been mostly met by using recycled silver and from government stockpiles. Even so, the shortage is there.

Looking At The Numbers

Recently published data points argued that recycled silver cannot continue to meet the gap between supply and demand. The supply of recycled silver dropped 24% last ye...

Aug 14, 2014
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GoPro IPO (GPRO): Should Traders “Capture” This Opportunity?

One of this year’s most highly-anticipated IPOs has been wearable, high-definition camera maker GoPro .  With the help of high-profile events like the Olympics and a Red Bull Super Bowl commercial featuring Felix Baugartner’s free fall from space, the popularity of these devices has sky-rocketed in recent years. This is evident in the company’s triple-digit and high double-digit topline growth rates.  Further, unlike most IPOs, GPRO actually has an established track record of profitability.

T...

Aug 13, 2014
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