Market CommentaryMore Market Commentary
Quite the bang out of the market this morning. The Dow and the S&P ran up solidly in the first hour, and are still hanging in there, even though the buying has tapered off. The finish today will tell us more about the conviction and buying power of the bulls in this long-winded rally.
In the meantime, let's consider a thought about the market relative to the long-term outlook.
- "Perhaps the best name is not the 'great rotation' but the 'gradual rotation'. If you look at the state of investment...
Whole Foods Markets Inc. has been trading in the range of $84.00 - $104.00 in the past 30 days and is seeing very strong technical and fundamental characteristics that make it a buying opportunity.
WFM stock has been showing support around $93.40, with resistance in the $113.00 range. The stock is trading above the 50-Day Moving Average and above the 200-day moving average. RSI indicator shows neutral reading at 65.50.
A LOOK AT FUNDAMENTALS
WFM's bullish technical indicators are supported ...Read More
Deere and Co recently gapped down on earnings breaking through some key support and challenging its previous uptrend.
On May 15, 2013, DE gapped down taking out the $90.00 support level. The stock immediately sold off and pressed down into the $88.50 short-term demand/support level.
DE has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into the $88.50. Key demand exists at $82.00. These levels give us a guide of risk to setup...Read More
September Australian dollar futures another selling opportunity on more price weakness.
See on the daily bar chart for September Australian dollar futures that prices are in a steep downtrend and have just hit an 11-month low. See, too, at the bottom of the chart that the Directional Movement Index has a green ADX line reading of 36.52. Any reading above 30.00 suggests a powerful price trend is occurring. The Aussie dollar bears are in full technical command, which suggests prices will cont...Read More
Crude oil has been extremely volatile in the last few weeks, with large swings both to the upside and the downside, but the movements possibly revealed where support and resistance lie.
PLAYING THE RANGE
The range it has traded in has held over the last few weeks. Crude oil has been a sell in the $96.50 to $97 areas, and a buy between $93 and $92. If we look at the trading behavior going back to March, it reveals to me that dips continue to be bought and I believe that upside potential to bre...Read More
Featured StoriesMore Featured Stories
In my recent article, I introduced you to the concept of using options as a way to manage risk in a trade.
As a quick recap there are two types of options:
Call option - Gives the buyer the right to buy a stock
Put Option - Gives the buyer the right to sell a stock
As an investor buying calls or puts can be used to insure your position against a sudden unexpected move that is not in your favor.
WHAT ABOUT SELLING THE OPTIONS?
Most students I work with understand the idea of buying opt...
Did anyone get the license plate on that truck? That is an old cliche, however; for many weeks I have been fielding emails and calls with a similar theme. Many traders, plainly, have not believed the stock market could get this far without a significant correction. The same goes for investors, raising cash, as the market rallied to all-time highs, wondering why such a large percentage of their investments are in low-yielding instruments; while the stock market soared some 14% since January. T...Read More
High yield stocks and bonds have seen tremendous inflows of assets over the last four years as investors actively seek both growth and income to boost their portfolio returns. In a world of zero interest rates, being able to achieve a yield of over 5% with capital appreciation potential is a very attractive investment opportunity. But it's important to exercise caution and carefully research the high yield landscape to determine the best sectors to allocate your hard earned nest egg.
This art...Read More
If you are an active trader of securities for your own account, you may qualify under special IRS rules to file taxes as a business . As a one-employee business, you are eligible to participate in a one-participant 401 plan. And this, of course, allows you to set some of your earned income aside tax deferred for retirement. But how do you qualify as a "business?" let's take a look.
For the IRS to consider you in "business" as a trader in securities , you must meet three conditions: Profit mu...
A flash crash is a sudden and dramatic drop in prices - warranted or unwarranted - that seems to quickly spiral out of control.
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This is part three of a four-part series on High Frequency Trading . In the first article the use of computers to quickly identify and execute trades was discussed. In the second article, the belief that data is unfairly disseminated was discussed. Today's topic is the possible role HFT plays in flash crashes.
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THE CRASH OF 2010
The flash crash that occurr...Read More