Every week when we are present in the markets, we have a chance to learn something. This past week was particularly interesting and important. There were several moments when the markets and conditions were teaching us all something new (or even old). I’ve summarized some of the things I saw and experienced last week, including…
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During this week’s webinar, I took a deep-dive look into the markets and how the recent volatility has spread through the indices. Fear has been rising smartly, and given the strong year that we just came off, there is no question that this is a great opportunity to sell. The real question is: Is this…
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There is no mistaking that the hottest and most productive group in 2013 was biotech. A slew of names were strong all year and finished on a high note. Given its strength, it made sense to see some give back early in the new year, and we saw it. But I am a believer in…
DetailsTo the right is a chart of GDP with a standard high to low Fibonacci drawing applied. Since breaking down from a double top in October, it has fallen a staggering 48%, and it now appears to be in the final stages of putting in a bottom. Getting to a bottom is a processes, and…
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Human behavior never changes, and when it comes to money, we use the scale of fear and greed. These emotions are like the yard lines and boundaries of the football field – we can clearly see the moves play out in the stock market thanks to charts, technicals, and sentiment indicators. So far in 2014,…
DetailsToday’s webinar featured guest Suzie Smith, a professional trader who also co-manages the Explosive Options Pro Room. Suzie and Bob chatted about the many benefits of using the chat room every day and threw out a special offer to those watching. Suzie also gave a brief update on the markets with some quick analysis.
Solar City is one of those high beta names that option traders love to play. This stock goes up and down like a yo-yo; it is highly volatile and especially susceptible to big news. The company was started by Elon Musk (of Tesla fame) and is currently trading near all-time highs. What’s striking is the…
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How do you handle it when you find yourself on the wrong side of the market? How do you deal with plunges and unexplained rises that put your positions at risk? Do you find yourself making grave errors and mistakes due to some blip or abnormal market beat? As an options trader, I know these…
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One of the best ways to measure market volatility is the VIX index, which basically is an expression of the demand for puts and calls on the SPX 500 index. Some will define it other ways, but simply put, that is the most raw definition – and really suits our purposes here. When the VIX…
DetailsBollinger bands, named for its developer John Bollinger, are measures of volatility shown by bands that are deviations above and below a relevant moving average. The bands expand and contract as volatility increases and decreases. Take a look at this chart on the right; the Bollinger bands are shown in blue. The bands are typically…
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