Cloud and data names have been on fire in 2019, and Splunk is one of the hottest stocks in the sector. After a garden variety correction in November and December, the stock climbed 40% this year. If you look at the chart, you will see a nice pattern of higher lows and higher highs. A bounce…
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Since the mini bear market/correction finished up at the end of 2018, the volatility index (VIX) has been smashed down. However, now that the VIX is low, it’s time to be cautious. I’ll explain why in a minute. First, let’s take a look at the steep drop on the VIX chart. As the markets rallied…
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Between the comments and speeches last week, it appears Federal Reserve Committee members are worried about backlash from an economic slowdown. So, they have decided to cushion the landing with all the resources they have. This includes using the Fed “put”. What is the Fed put? The Fed put occurs when the committee states they…
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We have witnessed a remarkable stock market comeback in 2019. It comes as a huge relief, but don’t forget that market sell offs can happen at any time – and they usually happen fast. Even when we’re enjoying some nice bull action, you must remain alert. If you become complacent, you risk losing money. We…
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LEAPS in 2019: Our Picks for the Year – Webinar Recap It is time for our annual options trading webinar on LEAPS. In this advanced strategy, you use diagonal calendars to set up high probability bets for long call and put strategies. They are a great alternative to stocks, especially in a highly volatile market.…
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Biotechs have been on a roll lately, and GW Pharma is sitting on top. Long noted as a player in the cannabis space, this volatile name has vaulted higher after getting pounded at the end of 2018. Volume has returned with the buying frenzy, and now the stock has run into some heady resistance. The…
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More and more traders are reaching for charts these days, and that’s a good thing. Knowledge is a powerful tool if you use it wisely. However, if you let confirmation bias creep in, your technical analysis can hurt your portfolio. Confirmation bias is defined as the tendency to interpret new evidence as confirmation of one’s…
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The recent market momentum is relentless. In two months, the markets have moved up from the depths of despair (remember Christmas Eve?) to within striking distance of all-time highs. Of course, there are plenty of us wondering when this run will end. Ignore the predictions, because they will be wrong. In fact, the markets made…
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The market has enjoyed strong gains over the past seven weeks, but of course not every stock has participated. Some names have floundered, but that doesn’t mean they’re a lost cause. Seven high-yield dividend names are looking very attractive right now. Their 10-year yield hovers near the 2.6% area, while the term structure on the…
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Home Depot has staged a remarkable comeback after a miserable finish for 2018. Even its strong earnings report in November was no match for the wicked selling blitz that hit, well, everyone. The stock has recovered nearly all those losses and is ready for a move up to higher ground. The chart is constructive here,…
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