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Showing Posts 51 - 60 out of 169 found.

Volatile Markets Are Tripping Everyone Up

Volatile Markets Are Tripping Everyone Up

It's been quite a week of action.   Monday was a sign that Tuesday could be nasty and indeed it was. Selling was concentrated and every rally in the early going was sold until any buyers just threw in the towel.  The drop had many concerned the prior lows would be breached, after the Russell 2000 already did that.  The options market showed a preponderance of puts being bought, many looking...

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March ICE Sugar Futures: Trading Idea October 10, 2014

March ICE sugar futures a buying opportunity on fresh price strength. See on the daily bar chart for March sugar futures that prices have made a good rebound from the September low and a fledgling uptrend line is in place. The bulls have gained some upside momentum recently and would gain more by pushing prices above chart resistance at this week’s high of 17.20 cents. That would also become...

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Solar City Earnings Options Play

Solar City Earnings Options Play

I have talked about implied volatility being considered "rich" or "cheap" when compared to historical volatility in the past.  A Little Background Implied volatility is deemed to be rich if it is greater in magnitude than its historical volatility over the same time period.  It is deemed cheap if it is below the historical.  In previous discussions, I have talked about the potential pitfalls...

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Defensives Gaining Strength, Cyclicals Losing Strength

VIX volatility rose to its highest level in 8 months on 10/9/14. Consumer Staples Sector ETF Relative Strength Ratio (XLP/SPY) rose to its highest level in 5 months on 10/9/14. Utilities Sector ETF Relative Strength Ratio (XLU/SPY) rose to its highest level in 3 months on 10/9/14. Technology Sector ETF Relative Strength Ratio (XLK/SPY) rose to its highest level in 21 months on 10/9/14. ...

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Keener Risk Aversion in Market Place Friday

OVERNIGHT DEVELOPMENTS It’s a “risk-off” day in the market place Friday morning. U.S. stock indexes are under pressure and have hit two-month lows, while other world stock markets are also selling off. U.S. Treasury bond and note futures prices are at contract highs on safe-haven demand. Late this week the focus of the market place has turned to the prospect of weakening world economies that...

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Crude Oil Bears in Full Command

ENERGIES: November Nymex crude oil closed down $2.06 at $85.24 today. Prices closed near the session low today and hit a nearly two-year low. The bears have the solid near-term technical advantage. However, this market is well oversold and due for a corrective bounce soon. The next near-term upside price breakout objective for the crude oil bulls is producing a close above solid chart...

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How Crazy Is This?

It is to the point now the less said the better. After all, how does one continue to articulate reason in the face of absurdity?   The big red flag is how the Russell 2000 has now fallen to new multi-month lows. It is true the small caps have traditionally led both in and out of bull and bear markets, but this time around, the context is different. The US economy and the Fed are in...

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December Soybean Meal Futures: Trading Idea October 9, 2014

December soybean meal futures a buying opportunity on more price strength. See on the daily bar chart for December soybean meal futures that prices have made a decent rebound from the recent low. See, too, at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator has produced a bullish line crossover signal, whereby the thick blue MACD line crossed above the...

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Health Care Gaining Strength, Energy Losing Strength

Health Care Sector ETF Relative Strength Ratio (XLV/SPY) rose to a new high on 10/8/14 and remains systematically bullish. Energy Sector ETF Relative Strength Ratio (XLE/SPY) fell below its lows of the previous 7 years on 10/8/14 and remains systematically bearish. Crude Oil, United States Oil ETF (USO) absolute price fell to its lowest price level in 10 months on 10/8/14, thereby...

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Stock Bounce Could Be Short-Lived: E-Mini Play

Stock Bounce Could Be Short-Lived: E-Mini Play

If you are a fan of swings or seesaws, the S&P gave you some entertainment the last few days. On Tuesday the index dropped nearly 1.5% in one of the larger moves we’ve seen as of late. If that wasn’t enough action and volatility for you, I hope you were able to see Wednesday’s bounce. The S&P recovered the Tuesday’s loss, rallying just under 2%. Fed News Wednesday’s release of the...

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