Like clockwork. You get a selloff to shake enough people out and buy puts… And once enough investors are hedged to the teeth or moved to cash, the market starts to rip. From there, the early shorts get smoked, and then those who were in cash start to feel the FOMO (fear of missing out). […]
Blog
Four Charts You Need to See Right Now
Over the past few days I’ve been talking about the live class that I’m doing this weekend. I’d like to pull back the curtain a bit more and show you what I’ve been working on. When you deal with options, profit comes not just through price but also through time. That means backtesting looks a little […]
The Next Ugly Move In Oil Stocks
I don’t think there’s been enough bloodletting yet. Sure, the last few months have been ugly for oil stocks… and odds are we won’t experience the same kind of nasty downside action that we saw late last year. Yet there haven’t been enough fundamental catalysts to justify oil stocks starting a new bull market. We need […]
Should You Buy Calls Because Goldman Sachs Says So?
A note from Goldman is out today suggesting that now is the best time to buy S&P 500 calls in over 20 years. That’s quite a bullish call, right? It sure sounds like they’re sucking people into the long side after the markets have already seen a strong move. Yet there is more to the […]
The Stealth Correction
Here’s where we stand on the markets: If we were to see this in a “textbook,” then sellers should show up shortly. The levels tested on Friday coincide with prior support which leads to potential resistance… and we have a declining 200 day moving average that should bring in sellers. On top of that, the […]
The One Stock That Was Unfazed By The Market Selloff
One of my favorite trade setups is to look for relative strength in individual stocks. Because if a stock is trading near its recent highs and is outperforming the market, odds are that trend will continue. 2016 has not been a good year for this setup, because nearly every single stock in the market was […]