Market CommentaryMore Market Commentary
The market is continuing its rebalancing today, but my small cap trades are holding on well. This tells me this “sell off” is not wholesale. At least it is a clue that this downturn is not full force. Yet, as the days go by with more selling, the clamor of voices yelling about the “big correction” increases.
- I think more than anything, the reason stocks dipped was just an "enough is enough" consensus - people are deciding to take profits. Thing is, unlike a news-prodded rally or pullback, t...
Consider buying a call option on March ICE cotton futures.
See on the daily bar chart for March cotton futures that prices have just hit a six-week high and a bullish “rounding-bottom” reversal pattern has also formed. The cotton bulls have gained near-term technical momentum to suggest prices will continue to trend sideways to higher in the coming weeks. Consider buying a call option on March cotton futures, with an upside price objective of 88.00 cents, or above. The option expires in early...Read More
Thursday morning brought us Jobless Claims, along with a bit if a surprise. Most market watchers were looking for a consensus of around 325,000, with a wide range of 315,000 to 350,000. Most of us were surprised to see the number come in at 368,000. The holiday season can make it difficult to interpret this type of data. One thing that does not need to be interpreted is that claims are at highest level since the government shutdown in October.
The Fed has indicated that they will rely on a c...Read More
Today, let's take a look at the broader U.S. equity market. SPY is an ETF that tracks the S&P500.
It is very fun to trade, moves well and now even has mini options. This gives you the opportunity to buy 10 shares at a time and still do covered calls while controlling shares in increments of 10. My thoughts on SPY and the market is we are about to have a small correction; nothing cataclysmic .
You may notice some support and resistance lines on my screen. The blue horizontal l...Read More
Kroger reported Q3 EPS of $0.53 on December 5th, a year over year increase of 15.21%. Revenue also saw an increase of 3.21% from Q3 2012 results. The management team reiterated FY13 earnings of $2.73-$2.80 per share. The P/E ratio currently stands at 14.57x this year’s earnings and a forward P/E of 12.98x 2014 estimates. Given the expected 11.50% EPS growth and 5.72% revenue growth for 2014, shares of Kroger could see gains north of 10% and still not be at an excessive valuation.
OPTIONS AC...Read More
Featured StoriesMore Featured Stories
As the New Year approaches, one year passes and another arrives. It’s an excellent time to review the year that’s been, take some “biggie” improvement action points out of it and step forward with clarity and purpose for an even better year ahead.
Here are 5 majors to consider when taking stock.
1. Are there ways to improve your EXECUTION PERFORMANCE?
If you have a systematic trading system with well defined trading entry, exit and position sizing methodology, you will know where you should hav...
"Will the markets close up or down today? Should I take profits? Cut my losses? Get short? Add to my position?" The accuracy by which a trader can predict today's closing price will ultimately determine the size of his profits . The Wall Street 'Pros' take action before the market moves against them. Like sheep led to the slaughter, the Main Street 'Joes' often wait and pray - costing them hundreds or thousands of dollars in potential profits.
How do the Pros know? They don't. But they d...
The head and shoulders top, coils, ascending triangles, descending triangles, wedges, and last but not least…scallops. There are a large number of patterns that the technical analyst uses to define particular setups in price action that he can act upon and trade with a favorable risk to reward.
Many are common, with varying names, some are more rare, and less known, such as the scallops, initially brought to my attention by Technical Analysis of Stock Trends by Edwards and Magee. The market h...
With the holiday season and year end approaching, the IPO market looks poised for one more flurry of deals before firms close their books on 2013. Among the twelve confirmed upcoming IPOs is one more headliner that is sure to generate plenty of interest.
Hilton Worldwide Holdings , the world’s largest hotel company with over 4,000 properties worldwide, is set to go public on December 13, offering 112.8 million shares within a range of $18-$21. Given the prominence of the IPO, it’s not surpr...Read More
Without a doubt wave labelling is one of the most important skills an Elliott Wave practitioner must learn and work on.
It is of my opinion that this is where a lot of students of the principle fail in understanding and gaining the real benefits of the principle, this requires in-depth knowledge of the patterns, rules and guidelines. A diagram of an idealized Elliott Wave Cycle should always be in clear view of the analyst and under that multiple degrees of the wave labelling the practitione...