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
We just closed out a low-stress trade in ADBE (Adobe). This kind of setup allows you to earn income-generating profits without putting on a ton of risk. I'll detail the setup in just a moment, but first allow me to explain how this trade works. After a big move higher in a large-cap stock, what
During the entire rally in smallcaps, an interesting indicator did something that it wasn't supposed to. I'll show you what's going on in just a moment, but first let's take a look at where the Russell 2000 (RUT) index currently sits. Smallcaps had a monster of a rally without any kind of pullback at all.
Last week, Shopify (SHOP) had a nasty selloff, going from 120 to 100 over the course of just a few days. The baddest short seller on the block, Citron Research, apparently thinks that Shopify is some giant scam. Or something. I like the company overall and this feels more like a bear raid to me...