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Showing Posts 1 - 15 out of 52 found.

What I Look For In A Good Investment

What I Look For In A Good Investment

If you’ve been investing very long, you no doubt understand the importance of having a solid system in place. By “system” I’m not referring to a secret black box or to technical rules, though both can be valid approaches in the right hands.  I am speaking far more broadly.  Whether you are a value investor, a technician or a data-crunching quant, consistently making good returns in the...

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Options Trading 101: Don't Hide Behind The Math

Options Trading 101: Don't Hide Behind The Math

Don't hide behind the math! That is a common phrase I tell my students seemingly on a daily basis.  That may sound quite odd coming from a statistics major, but it is one of the very important credos we traders must live by. What Do I Mean By This?  It means, don't let a mathematical output override common sense.  Trade Example Let's take an example when I was looking for an earnings play...

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Follow The 3 Key Trading Rules Of Jesse Livermore

Follow The 3 Key Trading Rules Of Jesse Livermore

If you're a student of market history there is nobody you learned more about than Jesse Livermore. Edwin Lefevre wrote his story in the book Reminiscence of a Stock Operator, one of my favorite reads.  He was truly a man before his time, making his fortune during the days prior to the Great Depression at bucket shops and fledgling brokerages.  His tape-reading skills were legendary and are...

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What Does S&P 500 At 2000 Really Mean And How Can You Trade It?

What Does S&P 500 At 2000 Really Mean And How Can You Trade It?

Traditionally September is a month that sees a decline in the equity index markets. When markets put in new record highs, we often see a retracement from those levels. On the flipside, investors and market players have heard from the Fed and have a better picture of the Fed’s future plans. The shrinking of the stimulus program along with the hint of changing interest rates next year has not...

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Implied Volatility Is Soaring In McDonald’s

Implied Volatility Is Soaring In McDonald’s

Shares of the $92 billion fast food restaurant company, McDonald’s (MCD), are down 0.83% year to date vs. the Dow Jones Industrial Average’s (DJIA) 3.29% gain. From the May high of $102.95, McDonald’s is down 8.06% as comps and quarterly earnings have missed Wall Street estimates in the last two quarters. On August 22, McDonald's named Mike Andres the new president of its U.S. operations,...

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Airlines Stocks Poised To Fly

Airlines Stocks Poised To Fly

Hi, World! I hope you’re doing sensational. I’m back from GA and had an enjoyable visit with the family. The market is closed this upcoming Monday. My girlfriend works at a bank and she’s actually off. Hopefully I am, too? Anyway, take time off this weekend. Make sure you enjoy yourself and spend time with your family. Maybe fly somewhere you haven’t been before! Airline Stocks Speaking of...

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Psychology: The Five Trader Personality Types, Which One Are You?

Psychology: The Five Trader Personality Types, Which One Are You?

I’ve learned from over a dozen years as a coach to top traders that traders, like criminals, can be profiled (no offense.)  In fact, just 5 Trader Personality Types encompass all the personality variations I’ve ever encountered, if one includes hybrids. (By the way, these five types have nothing in common with standard academic or corporate personality models.) Over the last 5 weeks I’ve...

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Stock Watch: Western Digital Shows Good Relative Strength

Stock Watch: Western Digital Shows Good Relative Strength

While much of the broad market has rallied, there have been stocks biding their time and gathering strength for the next move higher.Western Digital (WDC) is one of those stocks. Quiet Range After a very strong rally from May to July, the stock has done nothing besides settle down in a three- point range. Good Relative Strength The important thing to note is that the stock didn't break its...

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Unusual Options Action: Big Player Snaps Up QEP

Unusual Options Action: Big Player Snaps Up QEP

On Monday morning, QEP Resources (QEP) joined the list of names in which we’ve seen unusual options activity in 2014.  Shares are up over 15% in 2014, outperforming both the broader market and the energy sector (S&P 500 Energy Sector stocks are up 10.6% this year).  Volume Data With an average daily volume of under 1.5 million shares, QEP Resources is one of the lesser known names for...

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Is NRG Energy Poised To Rocket Higher?

Is NRG Energy Poised To Rocket Higher?

Hey, World! I hope you’ve been sensational. I have missed you all! I am headed down to my hometown of Statesboro, GA this weekend to see my Dad and family. Should be an adventure; about a seven hour drive, not too bad. Energy Stock I was reviewing the energy sector today and came across NRG Energy (NRG). This bad boy was a ‘rocket ship’. In mid March, NRG broke through the strong resistance...

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Intersil Shares Are Ready To Retest The 52-Week Highs

Intersil Shares Are Ready To Retest The 52-Week Highs

Shares of Intersil (ISIL), a $1.73B power management integrated circuits maker, are up 25% year to date this year, but only trade at a P/E ratio of 16.78x (2015 estimate) with 12.2% EPS growth (25.4% this year). Revenue growth is expected to accelerate from 1.7% this year to 5.5% in 2015. The current dividend yield of 3.41% is better than the SPDR S&P 500 ETF Trust’s (SPY) 1.80% yield...

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Transition From Old Crop To New Crop: Musical Chairs For Beans

Transition From Old Crop To New Crop: Musical Chairs For Beans

There continues to be optimal seasonal crop condition ratings for soybeans in Iowa, Illinois, and Indiana, high yield counts from the Pro Farmer Crop Tour this week for Nebraska, South Dakota, and Ohio, along with continued favorable central US weather forecasts that have continued to pressure corn and soybean values. The volume of trade has been moderate with traders watching to see if...

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The 5 Trader Personalities- Part 5: The Engineer

The 5 Trader Personalities- Part 5: The Engineer

One’s personality is like the water a fish swims in. It colors our perceptions and decisions in a global manner that we are usually quite naive about. Frankly, one’s personality quirks often get a pass from others in the course of daily life (“He’s just that way.”), but when it comes to the financial arena, our personality strongly affects our bottom-line results.   [Note: In my work with...

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Unusual Options Activity Seen In Kate Spade & Company

Unusual Options Activity Seen In Kate Spade & Company

Kate Spade & Company (KATE) recently reported earnings, and news of contracting profit margins sent shares tumbling over 10 percent.  Unusual Options Activity At least one institution thinks this move was overdone. Monday’s session saw a trader come in and buy 5,000 KATE Sep 33 Calls for $0.95, paying the ask against 700 contracts of open interest.   Huge Position This order has the...

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US Stocks: Did You Miss That Correction?

US Stocks: Did You Miss That Correction?

I suppose many were expecting more in terms of price and time.  But if you were paying attention (as I was, because my stomach was churning) then you witnessed about a 4% drop in the indices in the matter of five or so days, and if you count the SPX futures it was about 5% (to the lows reached overnight on Aug 7/8).  And now, about a week later much of that lost ground has been recovered, to...

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