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Market Commentary

More Market Commentary

Selling Option Premium: Ideal Chance Next Week, But HURRY UP!

I talk about many different money-making strategies regularly, and among this is selling option premium.  This is one of the best and simplest ways to earn income, it can also allow you to get into a stock position at a lower price.  Next week offers a particularly good chance to get some positions working, as there are only 3 1/2 days of market action .  This is very similar to the market schedule during Thanksgiving week.  In fact, this is the third instance this year where there have been ...

Dec 20, 2014
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Well, Well, Well … No Market Collapse?

Well, yesterday’s market rebound from recent losses impressed me, as it did many others, but the closing was absolutely breathtaking. Yesterday’s finish surprised me in its strength and the message sent was the bulls were never out the game, that they were just waiting for the moment to capitalize on the bears insistence. Yesterday was the moment.

Today’s market action pushes this thesis further. The bears have an opportunity to capitalize on the sudden rush back toward recent record highs, a...

Dec 19, 2014
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A Deep Look At LNKD

Against a backdrop of a fallen market that, until two days ago, couldn”t quite manage to regain its footing, LNKD impressively managed to shrug off the weakness by flexing its muscles to the tune of 13 percent. What next?

The chart below was released to my TradeWinds subscribers on December 9th, the exact day of the reversal. Having rallied in “wave a of 3” up to 238.77 through November 4th, profit-taking “wave b of 3” swiftly got underway and wouldn”t relent until almost filling the entire p...

Dec 19, 2014
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Forget The Speed, Watch The Patterns

Sometimes, it seems our brains move in slow motion as it relates to market action.  Perhaps it is the computers and High Frequency Traders that are just lapping us.  Maybe our hopes and expectations get in the way of sound judgment and free thinking. Maybe it is the angst we sometimes feel when the market is as volatile as it has been recently.

I can't seem to put my finger on the reason why it this way, but, in any case, it doesn’t matter, as it is the patterns that truly matter. I look for...

Dec 19, 2014
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A Snippet Of Classroom Talk About Options

Reward to risk is not the be-all-end-all of risk management.  I talk about this concept all the time in my classroom. Recently, Macy's Department Store was a topic of discussion regarding risk-reward is risk management. A student was looking for an opportunity to take a directional long in M, so we did some live analysis in the classroom. 

There are no weekly options available for M, and our time horizon was longer than one day, so we were considering January expiration. 

Using the implied v...

Dec 19, 2014
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Featured Stories

More Featured Stories
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Holiday Stress and Trading Pressure: How to S.T.O.P. the Torment

The holiday season is here.  It’s time for celebrating and good cheer.  It’s also a time of heightened stress.  For many traders, who already feel lots of stress, the holidays can feel doubly difficult. 

Trading and Holiday Stress

We all know trading stress.  Recent losses and drawdowns can bring on stress.  So can managing a position, especially if it backs up on you.  Even profitable positions can be stressful.  We don’t normally think about profitable trades as stressful, but I have seen m...

Dec 16, 2014
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RSI, Better Price Oscillator Than MACD

Most traders are unaware there are three types of oscillators used for stock analysis. These are based on three different data streams –

  • Price Oscillators that use price and time data,
  • Volume Oscillators that use quantity and time,
  • Hybrid Oscillators that use price, quantity, and time.

There are innumerable price and time indicators and many are oscillators, but one stands out from all the rest – Relative Strength Index . It is not the most popular, but it is the best price oscillator for sho...

Dec 16, 2014
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Trading Fears – Why We Have Them And What To Do About Them

Trading fears are not the sole domain of new traders, actually far from it. Much misunderstood, fear can hit at any time. The real issue about trading fears has to do with bumping up against your thresholds, which can happen at any time.

Growth and Development, Evolutionary Universal Laws

You are growing and changing all the time, for the most part not noticing that it is happening. However, when an evolutionary impulse hits, and you are standing in the way, like most people are, it can get ...

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Planning For Retirement? Plan Again

It's Christmas time. Everyone has been good little boys and girls, working diligently these past 40 years or more, marching toward America's promise, the golden years when one can lay down the work tools and enjoy the comforts of retirement.

A False Promise

The post-war generation – World War II – came back and raised families based on a simple promise –work hard, buy a house, save money, and when old enough, retire, as in stop working. Now, their children are ready to realize that promise an...

Dec 9, 2014
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Estimated Tax Payments, A Primer For Traders

For the majority of Americans, income taxes are collected on a pay-as-you go basis through the automatic withholding on their wages through their employers. However, if you receive substantial income from dividends, interest, business income, and/or capital gains, you should check your estimated tax liability to verify if you need to make estimated tax payments. Failure to pay a required estimated tax installment will subject you to a penalty based on the prevailing IRS interest rate applied ...

Dec 9, 2014
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