If you are a “writer” of commodity options, you inherently have exposed and unlimited risk. However, it’s this risk potential that provides the capacity to reap rewards. Therefore, a savvy commodity option writer understands that managing risk is more important than reaping rewards. The trade setup below details a strategy to help protect short option positions with longer than a month until option expiration. In a follow-up, I will discuss a strategy to help protect short option positions with less than a month until option expiration. These strategies can be tailored to reach your short term objectives and long term goals. Continue reading "Savvy Option Trading for Well-Capitalized Investors"
Spotting New Trends: Knowing When to Go Against the Grain
By Darren Kaiser, International Man
It is said that hindsight is 20/20. It's easy to think, "If I had just bought apartments in Paris in the 80s, or tech stocks before the bubble, or gold in 2000 or 2001, I'd be sitting on a fortune right now." The thing is, kicking yourself for lost opportunities doesn't do you much good. A better strategy is to start focusing on not missing "home run" type investments like these in the future.
So, how does one go about cashing in on fast-moving trends and identifying "the next big thing"? Many will tell you that making money like this is all about chance, that you just have to be lucky. Well, I'd be lying if I said there wasn't some luck involved, but the quote "the harder I work, the luckier I get" by Samuel Goldwyn comes to mind. Continue reading "Spotting New Trends: Knowing When to Go Against the Grain"
Stocks Close Firmly Negative
(RTTNews) - Stocks moved notably lower over the course of the trading day on Thursday after turning in a mixed performance in the previous session. Disappointing jobs data weighed on the markets along with continued worries about Europe.
The major averages moved roughly sideways going into the close of trading, stuck firmly in negative territory. The Dow fell 115.30 points or 0.9 percent to 13,057.46, the Nasdaq slid 20.27 points or 0.7 percent to 3,053.40 and the S&P 500 slid 11.41 points or 0.8 percent to 1,402.08. Continue reading "Stocks Close Firmly Negative"
Daily Video Update: Is the stealth rally over in stocks and has the bull market in gold just begun?
Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 23rd of August.
The question on everyone's thoughts and minds has to be, is the stealth rally over in stocks and has the bull market in gold just begun?
Back on Tuesday, we warned that Tuesdays tend to be reversals days. We also did a recent poll asking if you thought the market was going to close lower or higher for the week. Results were remarkably close, almost a 50-50 split, so there's an equal number of people who are bullish and others who are still bearish on this market.
Overall the equity markets are lower for the week. Should we close at current levels or lower on Friday, it will mark the first time in six weeks that we've seen profit-taking coming into the market on a little more volume. Volume for the most part in this stealth rally has been low, very low, which is sometimes a clue that stocks are moving higher on little to no fresh buying.
We expect the S&P 500 to move back to the midpoint of its Donchian Trading Channel. That would bring the market down to the $1,390 to $1,380 level. Let's see how the markets close out the week tomorrow.
It is official, all of our Trade Triangles are positive on Gold today. Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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Fed moves seem less like a sure thing
Imminent action, it seems, wasn't so imminent after all.
The stock market recovered most of its Wednesday afternoon decline after the Federal Reserve hinted that it was close to taking more action to try to prop up the economy. But Thursday morning, those gains had all disappeared, after one top Fed official cautioned that more moves from the Fed were hardly a sure thing. Continue reading "Fed moves seem less like a sure thing"
