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Supply Side Dominates In Corn

Supply Side Dominates In Corn

There were two key reports the first two days of this week.  Monday’s crop condition report and Tuesday’s U.S. Grain Stocks quarterly report.  The News Let’s cover the September stocks and small grains summary first. The report was viewed as mixed, but in the grand scheme of things not all that eventful. Sep 1 corn stocks were pegged at 1,236 million bushels, 55 million above expectations....

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Unusual Options Activity: Mellanox Technologies On The Move

Unusual Options Activity: Mellanox Technologies On The Move

Mellanox Technologies (Nasdaq: MLNX, 42.58) is headquartered in Sunnyvale, California and Yokneam, Israel, and provides ethernet and infiniband switches for servers and storage used in enterprise data centers.MLNX shares are up just over 8% in 2014, performing comparably to the broader market.  Price action has been choppy, with shares trading in a 52-week range of $30.58-$46.04. The Trade...

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Be Objective: The Market Will Tell You Where It Wants To Go

Be Objective: The Market Will Tell You Where It Wants To Go

I have noted over the past couple of months that the world is a pretty tense place right now.  It also seems like there are a lot of entities using fear tactics to further their own agenda.  What should we really concern ourselves with and what is merely smoke and mirrors?  We will never know what is real until after the fact so the best way is to keep things in context.  One of my mentors...

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We Cannot Will The Market To Meet Our Needs

We Cannot Will The Market To Meet Our Needs

Patience is a virtue, but in these markets we are in the land of instant gratification.  We wanna get paid and then step aside before the fall.  That of course is market timing, something traders ultimately meet with failure.  Why is that?  Because you have to be right in getting in/out/in/out over and over again.  Nobody can time it right perfectly, and when you are out of the market how...

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The Outperformance In Burlington Stores Isn’t Over Yet

The Outperformance In Burlington Stores Isn’t Over Yet

Shares of Burlington Stores (BURL), a $3 billion off-price apparel retailer, are up 24.06% year to date. This compares to the S&P 500’s (SPX) and the SPDR S&P Retail ETF’s (XRT) 8.11% gain and 0.45% decline in 2014. On September 9, Burlington Stores reported Q2 EPS of -$0.01 vs the -$0.09 estimate (haven’t missed EPS estimates in the four quarters as a publically traded company)....

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8 Things You Need To Know About Trading Tesla Now

8 Things You Need To Know About Trading Tesla Now

Hey everyone in stock market land and Internet city! I hope you’re doing amazing!  I am traveling back down to GA again this weekend. My Dad’s 72nd birthday was on 9/24/14 so I will make sure this is a special one to remember. I’ll be driving down in my legendary Toyota Corolla. Gets great gas mileage but it’s about as vanilla as it comes. I plan on trading it in as the New Year approaches....

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Options Watch: Amgen At Key Price Point

Options Watch: Amgen At Key Price Point

With the continued deterioration of market breadth, it's becoming more difficult to stay long in this market. It's also not the best risk/reward anymore to buy breakouts, but instead wait for pullback plays and support to buy into.Amgen (AMGN) is a large cap biotech stock that has seen great relative strength over the past few days. After a clean breakout above 140, it has since pulled into...

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Dr. Pepper Snapple Group: Unusual Options Activity Shows Big Buyer

Dr. Pepper Snapple Group: Unusual Options Activity Shows Big Buyer

Shares of Dr. Pepper Snapple Group (DPS), the Plano, Texas-based soft drink company, has steadily carved out new all highs in 2014.  Shares are already up over 37% in 2014, having traded in a 52-week range of $43.18-$65.43.  At least one institution seems to think the original “King of Beverages” is headed higher.  Last Friday at 2:05 pm EST, a trader came in to buy 5,755 DPS Nov 70 Calls...

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Fear Is Not Rational: The Limitations Of The VIX

Fear Is Not Rational: The Limitations Of The VIX

Most of us as traders and simply as human beings seek clarity.  We innately feel the need to make sense out of chaos.  We want answers.  We want black or white.  Gray makes many of us uneasy.  So, there are often times when faced with the complex world that is trading, we want to boil things down into one universal truth, a methodology that we can apply wherever we go. Problem is we often...

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Alibaba? Nah, I'll Just Pass On This One

Alibaba? Nah, I'll Just Pass On This One

As we are about to embark upon one of the biggest IPO's in history I thought it would be a good time to step back and see what this is all about and how you can shield yourself from a potentially dangerous situation. As we know, Alibaba (BABA) will come public this week.  The company is a juggernaut in Asia, selling everything online to anyone much in the way Amazon does here in the States....

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No Surprises From Yellen, But E-Mini S&P 500 Still Vulnerable

No Surprises From Yellen, But E-Mini S&P 500 Still Vulnerable

There weren’t any surprises in Wednesday’s FOMC announcement, but it did leave us a little room for debate. Policy rates remained the same (.25%), and the taper will continue, reducing asset purchases by $10 billion to $15 billion per month. The Fed expects to end the bond purchase program next month, which would appear to be step one towards a change in interest rates. As it has been with...

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Apple: Trade With The Trend, Still Bullish

Apple: Trade With The Trend, Still Bullish

Hi, world! I hope this message finds you well! I am super excited about this upcoming weekend. It’s one of my best friend’s birthday and we are celebrating via a pedal tavern. It’s like a bar on wheels! Really awesome, actually. Then, a student of mine is coming to Nashville, TN and we will paint the town red. He is actually in this trade with me, which is what got me thinking about it. Here...

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Metlife Shares Have 10% Upside Potential Into Year End

Metlife Shares Have 10% Upside Potential Into Year End

Metlife (MET), a $62 billion insurer and annuity provider, had a volatile start to the year, but is currently up 4.56% year to date. Following an impressive 67.47% rise in the 2013, shares of Metlife still only trade at a P/E ratio of 9.05x (2015 estimates) with 9.1% EPS growth (-0.5% this year), price to sales ratio of 0.88x, and a price to book ratio of 0.89x. Revenue growth is expected to...

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Spotting Unusual Options Activity In Avanir

Spotting Unusual Options Activity In Avanir

Monday saw shares of Avanir Pharmaceuticals (AVNR) soar on positives news from a mid-stage study on the company’s new Alzheimer’s drug AVP-923.  Shares climbed $5.24 (nearly 80%) on the news. Unusual Options Activity At least one trader anticipated positive news from the study.  Monday morning at between 9:38 and 9:39 am EST saw a trader come in buy 650 AVNR Sep 10 Calls for $0.39.  Less...

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What Is The VIX Saying Now?

What Is The VIX Saying Now?

The chart below is a long-term look at volatility (the VIX, red line).  The current low VIX readings are similar to the period of low VIX over the years of 2005, 2006, and into the beginning of 2007, which saw the S&P 500 index move from the 1200 level to north of 1500, a 25% gain (black line).   The picture in VIX continues to suggest that the current bull trend remains in force.The...

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