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Market Commentary

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Gold And Silver: Backing And Filling After New 2016 High

Both the Gold and Silver markets continued their upward surge last week with both markets posting their best gains and new 2016 highs to end the week on Friday April 29th. The impressive range up action in my view has been the result of ongoing weakness in the Dollar. It is also worth noting that there is growing concern that a soaring Yen due to continued financial concerns has also pushed Gold and Silver higher. Weak economic data last week in the U.S. was highlighted by a very weak GDP rea...

May 4, 2016
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An Objective View of SPX and NDX

The stock market had a lackluster finish to the week last week.  So is the pullback over?  Or is it just beginning?  Here’s the important price levels that will give you that answer.

The S&P 500 index is again testing into the zone of support at 2041 – 2059.  Any breach of 2041 would be a signal of a larger bearish shift taking place.  On any rally attempt, there remains resistance at 2078 and 2092 – 2115.  A move above 2092 or below 2041 would signal a shift to favor either the bulls or bear...

May 4, 2016
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Use This Old Trader's Trick To Spot Exits And Entries

 

Reading price charts can be tricky. Get it right and you find yourself profitable almost immediately. Get it wrong and you sweat when the market moves against you, sowing FUD ... Fear, Uncertainty and Doubt.

And when your confidence is shaken, your trading is ruined too.

But there’s an old trick traders have used for years to change their perspective on a trade, and give them an edge in selecting entries and exits.

They simply change the time frame of the chart to see a different way of cal...

May 4, 2016
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Sit Tight, Folks Are Flying, And Oracle Goes Big Energy

If nothing else, the market is consistent in its inconsistency. One can depend on the market to be inconsistent. The reason is simple – the Market R Us. We the people are the market and we the people are irrational beings when it comes to money . We can act like a herd of horses stampeding of a cliff when the media fires a gun above our heads.

My point? Recognize this and panic will not be an issue for you; you will not go over the cliff with the herd. Stay cool.  

- This week could very well...

May 3, 2016
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Should You Double Down On A Trade?

To roll or not to roll, that is the question.  I get this a lot in our room.  Invariably, it is when an expiring position is not working out for us.  “What can we do with our position in XYZ?  Can we cost average in?”  You name it. 

A gambler calls it “doubling down”, a trader calls it “cost averaging”.  I don’t care what you call it, it’s the same thing.  There is nothing wrong with doubling down and there’s nothing wrong with cost averaging. 

The question you have to ask yourself is:  “why ...

May 3, 2016
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Featured Stories

More Featured Stories
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Three Things To Know About The VIX

The Chicago Board of Options Exchange’s volatility index, known as the VIX, is a popular gauge of stock market fear, but it has also become a venue for mass speculation.  The VIX is the only futures contract listed on what is otherwise known as a stock option exchange.  However, given that the CBOE is the creator of the popular volatility index, it is only fitting to see the product listed on their exchange.  Yet, because the VIX doesn’t trade on the Chicago Mercantile Exchange as most U.S....

May 4, 2016
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The NFL Draft is Enticing but Traders Need to Think IRA

We are so addicted to the entertainment drug that is the NFL that we can’t turn away, even from the unwatchable draft coverage. But maybe in between analyzing your team’s picks, you can turn off the cringe worthy moments and spend some time focusing on your IRA.

From sophisticated traders to financial neophytes to every type of investor in between, 46 million American households owned at least one type of IRA accounting for over $6.5 trillion in assets at the end of 2013. However, across all ...

Apr 29, 2016
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Trading Levered ETFs? Better Make Sure Vol Drag Doesn’t Kill You.

As we recently explained, you’ll have to deal with a few problems when using ETFs to “buy oil”. But if you want to juice your returns further using levered ETFs, you’re going to run into even more issues.

In general, investors should avoid trading any instrument they haven’t thoroughly researched and understood. This includes ETFs, both levered and unlevered. Sure these trading vehicles seem simple enough, but do you really know what’s going on beneath the hood? Have you read the prospectus? ...

Apr 27, 2016
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How to Trade the Market Bar-by-Bar

Although many traders use indicators like moving averages, MACD, and the like, understanding how to read price action can add exceptional value to the trader.  With some study and practice, price action can help the trader determine the likely next move of the market.  Let’s look at the recent price action in the S&P e-mini futures that led to a swift and large decline.  We’ll see not only where the trade took place, but also how to anticipate the trade setting up well in advance of the actu...

Apr 26, 2016
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Option Trading: Are You Ready? Part 1

"Great traders have passion, confidence, an edge and a game plan. They are prepared, They keep their system simple.” - Gavin McMaster

I have been option trading for several years, and while my results have been up/down - what is important is that I have survived many different market cycles.  That should tell you a great deal, as surviving in this jungle call the 'market' without a life preserver safety net is a difficult but not impossible task.  To me, success is not all about the bottom li...

Apr 25, 2016
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