Because humans are herd animals, market action affects our trading behavior. There is no getting around it. If we could peer into the future and trade on information that guarantees perfect results, we’d ignore the herd. But we can’t, so we don’t. Instead, we look for clues that will keep us on the right track.…
Details
High beta names have been taking it on the chin since October, but Electronic Arts has been suffering since the summer. When the stock hit its low point two weeks ago, it was about 50% off the all-time high made in July. That’s a stunning decline on very heavy turnover. At some point, the stock…
Details
A lot of traders are itching for a nice big market rally, especially one that lasts for more than a day. If you’re one of them, be careful, or you could easily let FOMO (fear of missing out) ruin your portfolio. How did you fare during the rally on December 26? The Dow Industrials vaulted…
Details
How to Trade a Bear Market – Webinar Recap During our first options trading webinar of 2019, we discussed how to trade a bear market. There is no end in sight, so it’s time to get comfortable (as much as you can, anyway). Watch the replay and learn: How the markets finished in 2018 What…
Details
If you’re trading for income, remember that it’s all about good timing. It doesn’t matter what the markets are doing. You just need to have cash at the ready. Even during the global financial crisis in 2009, there were huge bargains to be had (as long as you didn’t believe the world was coming to…
Details
Welcome to a bear market. It’s been a while since we’ve been here, so let’s talk about how to navigate it without losing your mind. How to navigate a bear market First things first: get used to it. The statistics have been astonishing lately. New lows swamp new highs, the put/call ratio has reached its…
Details
Think of trading time frames like navigating a ship on the open sea. Without navigational tools, control mechanisms (mostly self-control) or respect for risk, there is little chance of survival. Just as weather conditions can change at any time, so can trading conditions. If you are alert, you can make proper adjustments, save your skin…
Details
In this bearish market, few names are making new highs, let alone getting near one. CME Group is a rare stock that is in striking distance of tagging a new high. The stock shows a nice trend of higher highs and higher lows, and after a brief consolidation period we should see this stock move…
Details
Interest rates are always telling us a story. Right now, they are telling us quite a bit. When interest rates fall, the primary reason is a lack of inflation – or a deflationary condition. We witnessed this not long ago on a couple of occasions, which you can see in the chart below. In 2011,…
Details
How to Tune Out Media Noise – Webinar Recap For our final options trading webinar of the year, we discussed how to refocus your attention on trading. The media has been whipping up a frenzy of hyperbole for the past two months, and it can be hard to look away. Watch the replay and learn…
Details