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Market Commentary

More Market Commentary

Some Days Just Throw Me Off

My guess is that the bulls are doing a three-day ropes course thingamajig somewhere in the outback, far, far away from any news.

  • Economy in U.S. Grew 4% in Second Quarter vs. 3% Estimate
  • ADP Employment Report Shows Job Growth at 218,000 in July
  • Euro zone economic sentiment unexpectedly improved in July despite the deepening crisis between the West and Russia over Ukraine,

How else can I explain the market movement this morning? The above economic news is remarkably good, and those are just t...

Jul 30, 2014
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How To Play A Bear Put Spread On Bearish Gap Down

GlaxoSmithKline gapped down on earnings on July 23, 2014 breaking below $51.00 demand level.* 

Key Levels

Because of the gap, GSK now has overhead supply at $51.00 and potential demand at $48.00.  I will use the demand level as target one.

TroyJuly30.jpg

Trade Setup

I will look to take a short position with options if the stock trades below the gap down low at $50.01.  I will look to use a Bear Put Spread to capitalize on this trade.

Option Trade

Since I know the stock is broken on the gap down side I wil...

Jul 30, 2014
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November Soybean Futures: Trading Idea July 30, 2014

Consider Buying a Call Option on November Soybean Futures

 See on the daily bar chart for November soybean futures that prices took a beating in late June and early July. Recent price action has been choppier and hints of a market bottom being in place. See, too, at the bottom of the chart that the Moving Average Convergence Divergence indicator has just recently produced a bullish line crossover signal, whereby the thick blue MACD line crossed above the thin red “trigger” line. Also, the mo...

Jul 30, 2014
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Psychology: 5 Trading Personalities - The Warrior

Last week I discussed how one’s personality has a substantial influence on investor/trader behavior. In fact, one often hears the advice to “trade according to one’s personality,” but most models used by psychologists for defining personality are designed for the corporate world, to help management identify leaders and team players.

These standard models provide very little useful information to those who are active in the financial markets, because leadership skills and the ability to play w...

Jul 30, 2014
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Gold Forms Wedge Into Fed, Jobs Data

Precious metals traders have much to digest this week before July ends and we enter into August on Friday. Significant earnings releases, a heavy slate of economic releases highlighted by the monthly jobs non-farm payroll number released on Friday, and major political turmoil in North Africa, the Middle East, and Eastern Europe that has dominated headlines. 

FOMC Meeting Concludes Wednesday

Oh, and let’s not forget, the FOMC meeting that ends on Wednesday with a policy statement and post meet...

Jul 30, 2014
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Featured Stories

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Government Economic Data: Read Between The Lines

Last Sunday morning at 8:45 the U.S. State Department announced via Twitter that it had satellite images proving artillery was being fired from Russia into the Ukraine. And apart from the U.S. media, the world almost fell down laughing.

The 'proof' was a series of blurry photos taken by a commercial – not government – satellite. They show vague marks and dark spots labelled blast marks and shell craters from Russian rockets.

To the reporters covering the State Department, the pictures showed...

Jul 30, 2014
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What Could The End Of QE Mean For Markets?

The end of quantitative easing in the next few months, could lead to a drop in asset prices followed by yet another QE round, more debt and a further devaluation of paper currencies.

The QE economy —which started in 2009 and has continued through 2014 — saw the banks buying stocks, bonds, and real estate, while loaning money to Wall Street, which sparked an asset bubble. That economy is coming to a halt.

The crisis in Ukraine, pro-Russian rebels in Ukraine shooting down a passenger airliner a...

Jul 29, 2014
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Strange Times: The Unprecedented Bull Market

The S&P 500 is on pace to triple its March 2009 low of 676.53 in 2014, leaving many wondering what is driving such an unprecedented bull market.  Indeed, a widely respected figure at a major financial news network said to me earlier this month, “Even in the media, we’re left scratching our heads by a lot of what we’re witnessing right now.”  

On Thursday the SPX touched an intraday peak of 1991.39 to close at yet another new all-time high of 1987.98.  The 10-year Treasury yield had closed th...

Jul 25, 2014
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Top 10 Free Trading Resources

The following is a list of my top 10 favorite free resources on the web for investors and traders. None of these websites involve any cost, though some do offer the possibility to upgrade to a pay service. We did not include TraderPlanet, since you are already here.

1.www.TopStepTrader.com If you are intraday trader that is tempted to have CNBC on during your trading day here is an entertaining alternative. "Eddie the Broadcaster" will keep you informed with a solid mix of market news, specia...

Jul 23, 2014
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Forex Tips: When Trading Discipline Goes Too Far

“Stick to your trading plan” is what we hear said all the time and I’ve been known to say it too.  Although that may be the best thing to do, if your trading plan is ok, there’s the odd time that crops up that makes you question it.

Being a dedicated forex trader I’ve done some serious screen time.  Eyes locked furiously on the charts waiting for my setups, mesmerized by the ebb and flow of the markets.

While going about my normal trading day, there have been several instances where the radical...

Jul 22, 2014
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