A new year is always a great time to reflect on what happened in the past and look ahead to the future. Each year, I analyze my trading history and pinpoint where I can improve. I also look to others for new ideas, and one of my favorite sources is the book, “Reminiscences of a…
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The latest round of stimulus spending from Congress could be a big boost for various high-end retailers, CNBC’s Jim Cramer said. Chart action suggests Capri Holdings, Tapestry, LVMH and Nordstrom may all have more upside, he said, citing research from technician Bob Lang. Retail stocks have been trading higher as optimism grows about the U.S.…
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I’ve written about the power of the Federal Reserve in numerous articles over the years (here’s my most recent article), but I don’t think society as a whole truly comprehends the central bank’s influence. In short, it’s massive and far-reaching. The Federal Reserve saved us from a depression Current Fed policy was put in place…
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Navigating markets as a trader is very challenging, because none of us can know for certain what will happen in the future. However, if we pay attention to the signals, we’ll have a good understanding of where things are headed. Right now, it looks like they’re headed in a bearish direction. The stock market is…
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An epic battle between the bond market and the Fed is setting up. For the past year, the Federal Reserve has been pumping money into the system via bond buying and a zero interest rate policy. These accommodations allowed our economy to sidestep a potential second Great Depression, or perhaps even worse. The Fed knew…
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This article is the final of a three part series about the recent GameStop saga. You can find the first article, “GameStop and the Short Squeeze” here, and the second on, “Short Selling Is a Vital Trading Activity” here.Today, we are talking about what would have happened if GameStop traders had practiced good risk management.…
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LEAPS in 2021: Our Picks This Year – Webinar Recap It’s time for our annual options trading webinar on LEAPS in 2021. In this advanced strategy, you use diagonal calendars to set up high probability bets for long call and put strategies. During the webinar, we discussed: Why and when to use LEAPS Examples of…
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This article is part two of a three part series about the recent GameStop saga. You can find the first article, “GameStop and the Short Squeeze” here. Today we are talking about short selling and its role in a healthy market. Remember those Merrill Lynch commercials from years ago that stated “We are bullish on…
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This is the first of a three part series on the recent short selling drama caused by traders on the subreddit Wallstreetbets. First, we cover the short squeeze, a classic play. All that anyone could talk about at the end of January was the rapid rise in GameStop’s stock price. This struggling retailer saw its…
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Stock prices move for a myriad of reasons, and as traders, we want to know why. This is the wrong question to ask, because why stock prices move doesn’t matter. You might feel more confident about placing a trade if you understand the logic behind the price move, but often, there is no logic. While…
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