Platinum And Silver Update

Posted on by Aibek Burabayev

One of our regular readers kindly requested the update of Platinum chart. Here we go as promised.

The global outlook for platinum posted in 2019 remains unchanged and you could see that big chart at this link. The previous update was this February as I used the cloning technique to visualize the current second leg up. Platinum futures prices did not follow it, therefore, below is the updated chart.

Weekly Platinum Chart

The leg 2 up had started with a two-leg zigzag up labeled as a blue AB part. It looks symmetric as both legs are almost equal and have the same trajectory. Then we can clearly distinguish the BC consolidation part, which consists of two legs down (red zigzag). It pierced the 38.2% Fibonacci retracement level to hit the valley of $1022. The RSI dropped slightly below the crucial 50 level. Continue reading "Platinum And Silver Update" →

What You Don't Know About Altcoins

Posted on by Wayne Burritt

What are Altcoins?

First off, the term altcoin is a portmanteau of two words, “alternative” and “coins.”

But don’t let that throw you: Alternative is the keyword here.

Alternative to what? Well, you guessed it: Bitcoin.

That’s right: Altcoins are all cryptocurrencies, except Bitcoin.

But that answer just gets us started.

So, let’s get to it! Continue reading "What You Don't Know About Altcoins" →

Weekly Stock Market Forecast

Posted on by The INO.com Team

This week we have a stock market forecast for the week of 7/18/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!

The S&P 500 (SPY)

SPY Daily Chart - Stock Market Forecast

The rally in the S&P 500 (SPY) fizzled out this week as forecast, and while the forces I am able to observe and measure in the index itself didn’t collapse into bullish domination, the bears were really mauling all the potential longs on my watchlist.

I would expect to see the selling continue as a correction form but wouldn’t expect a full market break this week unless external news pounds an already vulnerable market.

This upcoming week is a “wait and see” week as the best opportunities I was able to find only carried a 60%-65% chance for success. With the likely stop losses coming in HOG and NKTR, I have used up my “aggression budget” for the time being and am gearing down into a more conservative posture. Continue reading "Weekly Stock Market Forecast" →

Navigating Volatility - Beta-Controlled Options

Posted on by The INO.com Team

Controlling portfolio beta, which measures the overall systemic risk of a portfolio compared to the market, on the whole, is essential as these markets continue to break record high after record high with violent pullbacks. The month of June was a prime example as the markets pushed to new all-time highs early in the month, then suffered a Federal Reserve induced sold-off to only bounce back into positive territory to close out the month. Controlling beta while generating the same or superior market returns is the goal with an options-based portfolio. A beta-controlled portfolio can be achieved via a blended options-based approach where 50% cash is held in conjunction with long index-based equities and an options component. Options alone cannot be the sole driver of portfolio appreciation; however, they can play a critical component in the overall portfolio construction to control beta.

Generating consistent monthly income while defining risk, leveraging a minimal amount of capital, and maximizing return on capital is the core of this options-based/beta-controlled portfolio strategy. They can enable smooth and consistent portfolio appreciation without guessing which way the market will move, and allow one to generate consistent monthly income in a high probability manner in various market scenarios. Over the past 15 months (April 2020 – May 2021), 293 trades were placed and closed. An options win rate of 98% was achieved with an average ROI per winning trade of 7.0% and an overall option premium capture of 84% while moving in lockstep with the S&P 500. The performance of an options-based portfolio demonstrates the durability and resiliency of options trading to drive portfolio results with substantially less risk via a beta-controlled manner. The options-based approach circumvented September 2020, October 2020, January 2021, and May 2021 sell-offs (Figures 1, 2, and 3).

Options
Figure 1 – Overall options-based performance compared to the S&P 500 from April 2020 – May 2021
Continue reading "Navigating Volatility - Beta-Controlled Options" →

3 Week Winning Streak Comes To An End

Posted on by The INO.com Team

The stock market fell on Friday, pushing the DOW, S&P 500, and NASDAQ into the red for the week, ending a three-week winning streak. Inflation fears overshadowed strong retail sales numbers and better-than-expected earnings reports as earnings season kicked off.

On the day the DOW lost 299.17 points or -0.86%, to close at 34,687.85. The S&P 500 dipped -0.75% to 4,327.16, and the NASDAQ lost -0.80% to 14,427.24.

On a weekly level, the DOW ended the week down -0.52%, while the S&P 500 dipped -0.97%, and the NASDAQ fell -1.87% for the week. Continue reading "3 Week Winning Streak Comes To An End" →