This tech stock has started to see early signs of weakness before the rest of the market. Given how well it led in 2017, and the kind of price action it's currently seeing, I would keep a close eye on how it trades over the next month to get a feel for how the rest
As I was doing my market analysis over the weekend, I stumbled onto a long term "trend" statistic that shocked me. We've not seen this kind of reading since the 2008 market crash. I'd like to share this with you, as well as an invitation to a training I'll be having this upcoming Thursday. Register
I was going to start this letter to you a little differently, but some news just flashed across my screen... "North Korea fires another missile." Seems pretty scary, right? Well... so far it's a tiny blip in the markets. We'll see how we close today. Yet that headline leads me to ask you this question...
It's official. Volatility is dead. Markets are grinding higher, and the VIX can barely stay above 10. Extreme complacency, right? If nobody is buying protection then it clearly means that the collective market zeitgeist expect the market to go higher. You've also got a TON of traders loaded to the gills with short volatility products.
Inhale. Exhale. Expand. Compress. There's a natural movement in the markets... not just about stocks going higher and lower. You also have the volatility of the stock. We see volatility expand, then compress. And into those compressions are where you can see some really nice moves. Because the longer a stock has been stuck in
2017 has been "The Year Of The Grind." Slow, plodding moves higher with very low volatility and short-lived pullbacks. This is one of those times where you'd think selling volatility is a layup trade... until you realize that the volatility has basically been in one direction-- up. And that can be a killer for iron