Cisco Systems is making a nice comeback post-earnings. After the company posted lower than expected guidance, volume levels were elevated as Cisco was pounded. After some tight consolidation, the stock made higher lows and higher highs on the chart. Finally on Monday, it had a breakaway from that range (circled). If the nice rise in relative…
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In my last blog post, I compared options trading to playing pickle, a childhood game. Just like when trading options, your goal playing pickle is to not get tagged out. In other words, you want to increase your probability of winning while lowering your risk as much as possible. Simple in theory, difficult in real…
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Options Trading Webinar: Is the Fed Going Down the Right Path? The Fed meeting for June has come and gone. As expected, they raised the interest rate and clearly expressed their mission. During this options trading webinar, we discussed if they are going down the right path. We covered: An analysis of what’s on the…
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The big biopharma company Biogen seems poised for an upside pop soon based on recent turnover and bullish price divergence. Back in April, the stock took a major tumble of more than 20% on heavy turnover. It now appears to have bottomed out. It made a nice morningstar pattern (circled) and a higher low on…
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It might sound odd to compare a childhood game with understanding how to trade low volatility – but hear me out. I played a game called pickle with my friends on a baseball field growing up. The goal is to run back and forth between two bases without getting tagged out. There is a lot…
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Options Trading Webinar: Are We in a Trading Bubble? If you listen to the business media, the answer is a resounding yes. With big names and the markets continually hitting new highs, it might appear that we’re in a trading bubble. But I’m a technician – I don’t care what it “looks” like. I only…
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Last week was an interesting one in the stock market, with plenty of fear and greed to go around. Excessive greed pushed Amazon, Google, and most indices to new highs. Fear led to some sharp sell offs. Surprised? Not really. By analyzing chart patterns, you can clearly see the human emotions and behavior that parallel…
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ICE (Intercontinental Exchange) has been on a roll this year, steadily making higher lows and higher highs on its way to a new high this week. Indicators are looking strong – this is definitely one to watch. Volume has consistently been strong on a breakout day, while relative strength has been solid. History indicates that…
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Options Trading Webinar: How to Trade Markets at All-Time Highs The one and only Toni Turner was back for another outstanding, education-packed options trading webinar. A consummate technical analyst and educator, Toni and I focused on how to trade markets that are roaring towards all-time highs. The current conditions have become tricky to navigate –…
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If you watch or read business news, you know that the big story is about low volatility (as measured by the VIX) is. You have also heard or read that a low number (which is kinda rare) is not healthy for markets. From a technical point of view, this is not accurate. In fact, a…
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