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Market Commentary

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Airlines Stocks Poised To Fly

Hi, World! I hope you’re doing sensational. I’m back from GA and had an enjoyable visit with the family. The market is closed this upcoming Monday. My girlfriend works at a bank and she’s actually off. Hopefully I am, too? Anyway, take time off this weekend. Make sure you enjoy yourself and spend time with your family. Maybe fly somewhere you haven’t been before!

Airline Stocks

Speaking of flying gets me thinking of the airline industry.  I believe the airline industry is poised to break out ...

Aug 28, 2014
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U.S. Treasury Bond Gaining Strength, TIP Bond Losing Strength

Bond, iShares Barclays 20+ Year U.S. Treasury ETF absolute price rose above its highs of the previous 15 months on 8/27/14, thereby reconfirming its preexisting bullish trend.

U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year ETFs Relative Strength Ratio fell below its lows of the previous 5 months on 8/27/14, thereby reconfirming a medium-term downtrend. TIP/IEF remains systematically neutral.

The S&P 500 Composite Index absolute price opened higher but quickly reversed to the...

Aug 28, 2014
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A View Never Seen Before

Here we are, right smack in the middle of the week and the market is holding steady at the higher altitude. True, the air is thin, but the footsteps are certain to avoid a serious fall. Even Poroshenko and Putin seem to be stepping boldly toward a higher place.

  • Ukrainian President Petro Poroshenko promised after late-night negotiations with Russia's Vladimir Putin to work on an urgent ceasefire plan to defuse the separatist conflict in the east of his former Soviet republic.

Geopolitics has t...

Aug 27, 2014
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October ICE Sugar Futures: Trading Idea August 27, 2014

October ICE Sugar Futures a Selling Opportunity on More Price Weakness

 See on the daily bar chart for October ICE sugar futures that prices are in a steep downtrend and this week hit a contract low. The bears are in solid near-term technical command to suggest still more downside price pressure to come. A move below chart support at this week’s low of 15.30 cents would become a selling opportunity. The downside price objective would be 14.00 cents, or below. Technical resistance, for which t...

Aug 27, 2014
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Psychology: The Five Trader Personality Types, Which One Are You?

I’ve learned from over a dozen years as a coach to top traders that traders, like criminals, can be profiled   In fact, just 5 Trader Personality Types encompass all the personality variations I’ve ever encountered, if one includes hybrids. Over the last 5 weeks I’ve presented these Five Types to Trader Planet readers. They correspond to the acronym AWARE.TM

‘A’ stands for Agrarian

You may not realize it, but farmers were the first traders and they still dominate the futures market in Chicag...

Aug 27, 2014
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Featured Stories

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The Versatility Of The 1-2-3 Iron Butterfly

Traders may be aware of the iron butterfly, a strategy that creates a limit on possible losses, in exchange for a limit on potential profits. Expanding this further, the 1-2-3 iron butterfly is a strategy consisting of three expiration dates and three butterflies.

The middle is a reverse iron butterfly. This structure means that half of the positions will always become profitable whether the stock price moves up or down. And even with no movement, half of the positions – all of the short optio...

Aug 27, 2014
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Yellen Pulls Away the Punch Bowl, Will Rates Rise?

Let's focus in on negative interest rates and the potential for gold to increase in value.

As the Fed met in Jackson Hole over the weekend, gold was trying to hold on at the $1,300 level. Using a negative real interest rate model, gold should be around $1,400. Why? There is lots of concern about global GDP growth maintaining itself.

Let's take a look at the overall metals landscape. Some precious metals appear to be doing well. Palladium is at a 13-year high and rhodium is up 45% from the start...

Aug 25, 2014
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Use Oscillators To Determine Market Direction (Or Not)

Oscillators come in a number of different forms such as stochastic, relative strength and the commodity channel index.  Although the mathematical equations are different in each, the underlying principal by which oscillator calculations are made remains the same. 

How They Work

All oscillators compare the high and low of a given market move to its close.  This is the reason that oscillators are a bounded set of indicators. As the close of a market move approaches its high, the oscillator tra...

Aug 20, 2014
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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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