The S&P 500 is now 12% off of the all-time high price. Many investors and traders say that we are way oversold and we should go up from now here or bounce. Yes, we may bounce, but overall, market price action data indicate that selling is far from over and that we may see more Continue reading →
Making 45% Annually Trading Options Against Dividend Growth Stocks
Why the heck are the markets tanking?
That was a question Yahoo! has recently asked. Sometimes it really stuns me out when liberals start slowly waking up and asking such questions, which all others with common sense already knew what was happening. Yet there is still many with the rose colored glasses on unquestionably believing everything FED and Obama’s administration is feeding Continue reading →
Today we created a new lower low. We are in Bear market!
The August 2015 low was the first lower low of the trend; until today. A week ago I wrote a post saying we are in a bear market and shown a charting showing why I think so. I posted the chart above in January 7th, 2016 to show and explain what lines and Continue reading →
Wall Street in panic, S&P 500 plunged 3.16%
(Source: Hedgeye) At one point today, the S&P 500 plunged 3.16% below August 2015 lows. Wall Street is in panic selling and stop losses are now being hit. FED is still clueless. But do not worry. My coworkers who normally have no clue about stock market noticed this and started asking if they should Continue reading →
Selling continues towards August lows
An interesting parallel to save the market. This market is a rip for dividend investors and a nightmare for traders. All over the internet we see traders expecting bottom and bullish reversal. It is not happening and more selling is coming every day. Pundits blame oil and China. I blame slowing economy, gloomy economic outlook, Continue reading →
What a halted commerce tells us about economy?
Transportation sector is usually the first one which signals trouble with the market and economy overall. But transportation sector is a wide branch. So take a look at one significant portion of it – maritime transportation. Typically, majority of goods are still transported by sea using large cargo ships and tankers. Typically, you can see Continue reading →
Is selling over? Should you trade this market?
Futures are down again at the opening. It can mean nothing yet. We can see the market improve significantly overnight and we may see a rally. Some traders and investors are asking whether it is already time to start buying calls or selling puts. They are expecting the market to reverse. Yes we are oversold, Continue reading →
Should we really blame China?
A few days ago the market was selling hard and media blamed China and their circuit breaker and worries over Chinese slowing economy. Then media blamed North Korean hydrogen bomb for a selloff. A day before yesterday, they blamed China and their circuit breakers again. Yesterday, China removed the breaker feature and their market Continue reading →
Are you panicking yet?
Did you know that panic selling by retail investors (like you and me) is the worst thing you can ever do? Studies prove that when a retail investor finally gives up and decides to sell his losing stock positions, it is always already late. (Source: S&P, BofA, Merrill Lynch) It is the same Continue reading →
Here is why I consider this market bearish
Look at the chart. I use regression channel. It is a study provided for free in TOS. So the lines of the regression channel shown on the chart are drawn automatically by the study based on the price action of the underlying. It is as automatic as Bollinger Bands. It is expected that the price Continue reading →
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