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Can You Profit From Another V Bottom?

Can You Profit From Another V Bottom?

For the past few years, every dip, no matter the size - has been a great opportunity to buy.  They call it 'buy the dip', and when the pressure is high and price zips higher it tends to create V bottoms, where the chart looks like V, the drop looking catastrophic, creating the left side of the V, then a big turn higher when the buyers take price up sharply.  The result is usually whiplash,...

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Ambarella (AMBA): A Wild Earnings Ride

Ambarella (AMBA): A Wild Earnings Ride

AMBA is a developer of semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display.  Ambarella (AMBA) has been a wild ride.  They reported earnings earlier in the week and their results were quite impressive:  "Revenue from our existing wearable, IP security and automotive video recorder camera markets grew significantly in the quarter,"...

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What Traders Are Watching for the Month of September?

What Traders Are Watching for the Month of September?

For those traders who have seen their share of market gyrations, August certainly provided no lack of volatility.  Adding to market volatility is the ever increasing amount of rhetoric and punditry in both the economic and market sentiment category.  Today’s employments numbers, we are certain, will provide a bit of fuel for either camp of sentiment analysis.  Underpinning the market...

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Fasten Your Seatbelt: The Stock Volatility Isn't Over Yet

Fasten Your Seatbelt: The Stock Volatility Isn't Over Yet

A few weeks back I wrote how I felt that this August had a different feeling than usual. Little did I know what was in store. End of summer, Europe on traditional holiday, tend to bring slow markets and long days with them.  Obviously this year was a just a little bit different. To say the last two weeks have been volatile is a just a bit of an understatement. Some of the moves we saw last...

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Time To Jump Back Into The Markets?

Time To Jump Back Into The Markets?

Following up on my piece last week Is Another GFC Starting Now?, a quick V shaped recovery eventuated, only to give most of the gains back. Whether you decide to enter the markets now will depend on the type of investor you actually are. For me, I am both a traditional ‘Value’ investor as well as a ‘Growth’ investor as I have created two different portfolios. The difference? As a value...

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Look Out! The VIX Spells Trouble

Look Out! The VIX Spells Trouble

The sharp sell-off in the stock indices and the sharp spike in VIX spells trouble ahead. This sell-off in the SPX accompanied by a spike in the VIX has come after a lengthy period of low VIX readings just like in late 2007.  In that instance, the initial spikes in the VIX above 24 were an early warning to the price damage that was to follow. Looking at the chart below, I don’t believe the...

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Play Both Sides Of The Gold Market With A Strangle

Play Both Sides Of The Gold Market With A Strangle

Most of Gold’s losses from last week came on the heels of wild gyrations in the stock market last Monday and Tuesday which at one point had the Dow down over 1000 points in trading on Monday before global bourses recovered later in the week. The Gold market was also assessing comments on policy normalization from Fed officials attending the Aug. 27-29 Jackson Hole Economic Symposium. Two top...

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Learn How To Make Some Real Money Trading

Learn How To Make Some Real Money Trading

You can pretend to trade in the theoretical world but at some point if you want actual money, you are going to have to trade in the actual world.  You have a lot of things to consider.  Bid/ask spreads, volume, open interest and even regulatory issues.  There is FINRA regulation out there known as “PDT Margin requirement”.  PDT stands for “pattern day trader” and if you have less than...

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Flash Crash 2015: Did You Miss It?

Flash Crash 2015: Did You Miss It?

When markets opened on Monday, August 24, a slew of sell orders were already lined up, causing many computer systems to go haywire. Many brokers were locked out, and with market makers and specialists unwilling to take action, we saw enormous bid/ask spreads, stops being hit at very low levels, and frozen markets. This all occurred at the opening bell, and it was quickly fixed when some...

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The Shemitah Cycle: Is Another Crash Lurking?

The Shemitah Cycle: Is Another Crash Lurking?

Meaning the last year of a seven-year cycle in the Jewish calendar, the end of the past several Shemitahs have brought immense financial hardships to the world. The 1987 crash on Wall St. happened during Shemitah. The bond market was massacred in 1994. The 9/11 terror attacks happened in 2001 and the global economic crisis occurred in 2008. The Shemitah Year is the seventh year of the...

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Are You Protecting Your Portfolio?

Are You Protecting Your Portfolio?

With the vicious market declines over the past week or so several billions of market value have been wiped away.  It has taken quite a bit of time to build, and very little to take it down.  As the saying goes, take the stairs on the way up, and the window on the way down.  Yet, for those savvy enough to cover their tracks with some protection, perhaps the pain from deep losses was not that...

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Make A Wish List Of Stocks To Buy On Sale

Make A Wish List Of Stocks To Buy On Sale

Trading in markets like these can be very challenging.  Quite frankly, the rules do apply.  These markets do not care where the 200-day moving average is offering support or resistance, what the MACD is, the fact that all of your RSIs and Bollinger Bands are blown out.  Technicals respect ordered markets.  Panic is the antithesis of order.  So, how do we trade?  If you are scalping, many of...

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Trade A Potential Bottom In UPS Shares For Big Profits

Trade A Potential Bottom In UPS Shares For Big Profits

Shares of United Parcel Service shook off a downgrade from Zacks and mid-day market sell off to finish higher by more than 2%, printing a bullish hammer candlestick after nearly hitting lows not seen since last October. This would mark the third major support around the $94 support level since mid-April. Now is the time to consider taking a long position, using a stop loss under the August...

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How To Profit From The Next Black Swan

How To Profit From The Next Black Swan

The Nicholas Cage film Next is about a guy who can see two minutes into the future. He works as a Las Vegas magician and makes extra money quietly at the blackjack table.   As traders and investors, we would love to be able to see around the corner of time, especially during volatile periods. Since we can’t, when money is at risk, we tend to become fortune tellers and use our intuition to...

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Is Another Global Financial Crisis Starting Now?

Is Another Global Financial Crisis Starting Now?

Is talk of another GFC a reality, or just ridiculous speculation with no foundation whatsoever? Recently I wrote a very well received piece on the recent Greek Debt Crisis where I looked at the cold hard facts when the media went all crazy about a potential oncoming European Crisis, “Will A Greek Exit Trigger Another European Crisis?” It seems like we need to revisit this crisis topic all...

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