Once-in-a-quarter Quadruple Witching Day The Quadruple Witching that occurs every third Friday of every calendar quarter end is going to obscure the underlying market currents today, with options related plays dominating the market moves. Investors are cautioned to not read too much into today’s market direction and not to extrapolate it into future outlook (aka (more…)
Current Markets are Infected by Heightened Volatility! The current markets are severely infected with heightened volatility and those who are not properly protected from/used to handling such markets should practice “market distance”. Otherwise, it could lead to not only deterioration in financial health but also in emotional health. As we have been iterating over the (more…)
If Your Stomach Churns, Avoid Roller Coasters! The wild market gyrations continue in the overnight futures markets with index futures hitting “limit down” again! The SPY ETF is indicating an opening losses of 200+ points! As we have been iterating over the last few days, unless you are required to trade (professional trader? obsessive compulsive...
If Playing (err, Trading) on These Wild Waves, Be Agile! The wild market gyrations continue in the overnight futures markets with dow futures up about 800+ points and then up about 200+ points by early hours. Unless you are required to trade (professional trader? obsessive compulsive trader?), better to sit out the markets for a...
Know Your Risks When Playing (err, Trading) on the Edges! “Limit down” and “Limit up” have become almost daily occurrence these days – yes, we said it on Friday morning and we are seeing it this morning again – with a 15-minute Trading Halt on the open! The sharp and violent spikes in either directions...
Extreme Levels of Noise and Sharp Spikes – Hazardous to Trade! “Limit down” and “Limit up” have become almost daily occurrence these days. The sharp and violent spikes in either directions make it hazardous to trade or invest. Unless you are required to trade (professional trader? obsessive compulsive trader?), better to sit out the markets...
The Bear is Officially In! With the Dow officially entering the bear market yesterday, it’s no wonder the other indices joined it with the overnight futures down big…hitting the rare “limit down”. The 11 year bull market is now officially dead, and for most investors/traders this is a new territory to navigate. Unless some unexpected...
Be Careful with Bull Traps and Bear Traps! Yesterday’s headlines-driven (“fiscal stimulus to the rescue”) rally fizzled out in the overnight futures market. It may be another wild day, with wild spikes in both directions…trapping under capitalized traders into deep draw downs and stop losses. Unless you are a professional trader with well capitalized accounts,...
Coronavirus, Oil Price, Plummeting Yields, Economic Stimulus Promise…Chop Chop… (trading plans effective from 9:45am ET) It is not a given that economic stimulus can help with the demand side shocks to the economy nor with a health crisis/pandemic. Retail traders need to be very cautious in getting sucked into the mini-rallies that can only prove...
Oil Price-war Joins Coronavirus in Chopping The Markets! Our last trading plan published Friday morning said: “Since turning bearish on Friday’s (02/21) close, our models called for a test of the 2850-2880 level which was already tested and then meaningfully bounced back. These lows could be open for testing again today or on Monday!”. As...
