Even if you were on vacation last week, you know that the bond yield curve inverted on the 2/10 spread for the first time since 2007. It happened right before the Great Recession hit. Historically, an inverted yield curve means a recession will soon follow. So – is a recession upon us? Maybe, maybe not.…
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Traders and investors always look for market consistency. Unfortunately, all we’ve been getting is trading uncertainty. As uneasy as you may feel, you must be willing to put your capital at risk when others are fearful. At the same time, you don’t want to lose your shirt or your sanity. What happens when trading uncertainty…
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The VIX has woken up, and the bulls are not happy about it. Can’t it just take an Ambien and go back to sleep? Not with the trade and currency war ratcheted up another notch. Markets hate uncertainty. When a tweet about tariffs comes out of nowhere, the big money flees – and everyone follows…
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As I reviewed the Fed’s meeting and interest rate cut from last week, I kept asking myself: Did the markets overreact? On the flip side, was Fed Chair Powell being vague, evasive or acting out in frustration? Sure, the markets might have misinterpreted his statement following the meeting, but it still led to a steep…
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One of the reasons people get into options trading is because it provides a great deal of leverage versus stocks. You only need risk a small amount of capital to achieve sometimes extraordinary gains. Because options can move 10 to 12 times higher or lower than a stock, it is very possible to hit a…
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How to Tune Out the Market Noise – Webinar Recap Turn on the TV, and you face a firehose of opinions and predictions around the economy, stock market and The Fed. It is terribly confusing, and it seems to be getting worse as summer progresses. This is the perfect time to discuss how to tune…
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Off the Charts with Jim Cramer: Retail Sector Jim Cramer uses Bob’s analysis to discuss the charts of WATCH – Walmart, Amazon, Target, Costco and Home Depot. All five of these powerhouses in the consumer retail sector are going strong. Watch this Off the Charts segment on Mad Money to learn what’s in store for…
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During the summer, it’s not unusual for market action to slow down – sometimes way down. On those lazy, hazy summer trading days, it is more difficult to find great opportunities – and it can be a risky time to trade. Here’s why. Why is summer trading so slow? Well, a lot of traders go…
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If you’re an options trader, you might not think much about whether you have a balanced portfolio. It’s not really something active traders talk about, but – as in most aspects of life – balance is important. We know it, too. Yet, we often find ourselves out of balance. When we lean too far to…
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Last week, three of the major indices hit new, all-time highs. It stands to reason the stock market sees better times ahead – but what’s next? Is the next major move down into a correction or a sharp upside breakout? The answer is yes. Why the stock market can go up and down at the…
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