Many analysts are arguing that the current market is overvalued, overbought and out of reach, much like the dotcom era in the 1990’s. This might be true, it might not. What I do know is that you must avoid overvalued companies at all costs, or you could see your portfolio wiped out. During the go-go…
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DraftKings is the right concept at the right time. This gaming and betting company went public last year with great fanfare. When the pandemic arrived, it fell like a rock tossed in the ocean. The stock was teetering near single digit status for a month. Recent deals with big entertainment companies and casinos has put…
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Jim Cramer took a look at the chart action in three interesting charts prepared by Bob Lang: Caterpillar, D.R. Horton and RH. By Tyler Clifford “In a confusing market that’s once again circling the wagons around tech, the charts — as interpreted by Bob Lang — say you should consider some interest rate-sensitive stocks,” Cramer…
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As we rumble through a very challenging 2020, we are preparing for the next landmine: a Presidential election, which is already swirling with uncertainty. There is nothing worse than an election without a clear winner, both for us, the people, and the stock market. Remember the 2000 presidential election? Th election between Al Gore and…
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Last week I wrote about the odd kink in the VIX futures chart. The October future, which expires on October 21, projects 30 days of elevated volatility in the weeks prior to and after the presidential election. From a practical standpoint, this makes sense. Markets hate uncertainty, and there’s plenty of it related to the…
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How to Use TrendSpider to Find Winning Trades – Webinar Recap I’ve been using TrendSpider, a rather robust technical analysis platform, for a couple of years now, and it’s become an indispensable part of my trading toolbox. Jake Wujastyk, a member of the founding team, joined me for this options trading webinar to discuss: How to…
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Traders always need to watch volatility (via the VIX indicator), especially the term structure, which looks several months into the future. VIX futures give us a good idea of where the big money is going at certain points in time. In the short term, we learn if protection will pay off (it will when the…
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As a trader, you have so many options when it comes to interpreting current market behavior. And therein lies the problem: where do you start? Because less is more, I always start with price action (the king of the indicators). How to interpret current market behavior Below is the S&P 500 chart, which we’ll reference…
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How to Get into the Right Trading Mindset – Webinar Recap Successful options traders have much more than technical know-how in their toolbox. While it’s important to analyze technical indicators and chart patterns, it’s arguably more important to get into the right trading mindset. You need to be able to manage your emotions if you…
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Financial analysts have started speculating that we are in a stock market bubble. Based on my experience with the dotcom market bubble, I’m not so sure we’re in one … yet. Are we in a stock market bubble? It’s important to know that most people who “see” a bubble are not in it. They are…
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