Posts Tagged ‘David Grandey’

Today’s Gains Are All About The VIX

Today’s Gains Are All About The VIX

By David Grandey
All About Trends

Over the weekend we talked about trading in the face of fear and as far as fear is concerned there is the famous fear indicator called the VIX. When this is popping it means odd lot put options are being bought heavily. Typically odd lot put options betting on a market drop are done by the masses and the little guy so to speak. You see they are convinced that the market is falling apart AFTER it’s already started a big part of its move already. It’s a great contrarian indicator if you look at it from that perspective. Below are two charts — one of the S&P 500 and one of the VIX.

The blue circles mark lows on the chart above, now look at the chart below. Notice how when the lows are put in on the S&P 500 above those lows correspond with highs in the VIX?

 

Pretty neat huh? In the short term we will soon be relieving some of this push down. Typically that happens in the form of a dead cat bounce, Elliot Wave ABC 3 waves up, snapback rally — call it whatever you want. That’s when we want to be on our toes for laying out short sells. Recently you’ve heard us rant and rave to not chase stocks on the long side and let them come to you. Well the same applies here too only it’s on the short side. We won’t be chasing shorts AFTER we’ve already fallen. We’ll let them come to us and the only way they can come to us is in the form of some sort of bounce by the market.

In the coming days you’ll be seeing a lot of educational articles dealing with what to consider doing with a bounce in the markets and how to profit from it when it stops bouncing via short sells.

To learn more, sign up for our free newsletter at www.allabouttrends.net and receive our free report — "How To Outperform 90% Of Wall Street With Just $500 A Week."

 


Tags: ,




How To Profit In A Market Correction

How To Profit In A Market Correction

Courtesy of David at All About Trends

Last week’s action should not come as any surprise to those who follow us closely. Since the beginning of the month we talked about being overbought, we talked about not chasing the market or stocks, we talked about not reacting when the drive by media was saying WOW the market is up it’s time to buy. We talked about follow the leaders and how for weeks leading stocks were selling off and why that was important as it always forecasts how the rest of the market isn’t far behind. We talked about listening to the market and what it was saying. Now you know why we say what we say all the time. And sure enough here we are!

We even showed you how to use short term support and resistance levels and how they act real time.

Now you know why we hit and ran early in the month and went to cash. We’re up for the month nicely while the market hasn’t gone anywhere since the beginning of October.

 

The chart above shows that of being in the zone for a potential turn higher in the coming days. It’s the quality of that bounce when we get one that we are most concerned with.

 

You can see the lower blue line support level is very near. It would not surprise us to see us open down there on Monday. Why? Because when you go into a weekend like we have, emotional money has the tendency to listen to fear without doing their homework like we are so they hit the sell button on their online accounts to sell at the open at the market. And you know what? All those orders are sitting on the books for when the market makers and specialists come in Monday morning.

They know there are sell orders on the books from the weekend so do you really think they are going to be nice to that emotional money and let them out? Chances are not. This is what’s called trap door opens. It’s where they gap down and fill all that emotional money then run the market without them. We’re not saying this is the way it’s going to be, we’re just saying we’ve seen it before and don’t be surprised if the open…
continue reading


Tags: ,




 
 
 

Phil's Favorites

Arrogance destroyed the World Trade Organisation. What replaces it will be even worse

 

Arrogance destroyed the World Trade Organisation. What replaces it will be even worse

As the public face of globalism, the WTO mobilised protesters. It’ll be replaced by the law of the jungle. fuzheado/Flikr, CC BY-SA

Courtesy of John Quiggin, The University of Queensland

In line with his usual practice, Australia’s Prime Minister Scott Morrison has backed Donald Trump over the World Trade Organisation, criticising of China’s status in it as a “developing country”.

Critics of the int...



more from Ilene

Zero Hedge

"The Bubble Is Starting To Burst" For Online Social Media Influencers

Courtesy of ZeroHedge View original post here.

One of the first brands to ever use social media influencers for advertising, Ipsy, is again leading the way - but this time, in pulling back from social media, according to the Wall Street Journal

Brands like Ipsy are left questioning whether or not the advertising is worth it, since they have no way to measure sales or verify how many people see ads. Influencer advertising and sponsored content, meanwhile, has become th...



more from Tyler

Kimble Charting Solutions

Apple Bullish Breakout Suggesting Tech Follows In Its Path?

Courtesy of Chris Kimble

Is Apple sending a bullish message to the overall Tech market? Sure could be

Apple (AAPL) is working on a breakout above last year’s highs at (1), after creating a series of higher lows over the past year.

Tech ETF QQQ has been a similar-looking pattern to Apple over the past few months, as it is near old highs while creating higher lows.

Is Apple’s upside breakout suggesting that QQQ will follow in its footsteps and breakout?

Str...



more from Kimble C.S.

Insider Scoop

How Much Litigation Risk Is Priced Into Johnson & Johnson?

Courtesy of Benzinga

Johnson & Johnson (NYSE: JNJ) just can't seem to shake its talcum powder problems.

On Friday, Johnson & Johnson recalled 33,000 bottles of baby powder after a bottle purchased online by the FDA tested positive to asbestos.

Last year, a jury awarded a group ...



http://www.insidercow.com/ more from Insider

Digital Currencies

Five hurdles blockchain faces to revolutionise banking

 

Five hurdles blockchain faces to revolutionise banking

Shutterstock

Courtesy of Markos Zachariadis, Warwick Business School, University of Warwick

Blockchain is touted as the next step in the digital revolution, a technology that will change every industry from music to wast...



more from Bitcoin

Chart School

Gold Stocks Review

Courtesy of Read the Ticker

Gold stocks are swinging back forth between the range, and a break out swing higher is due. Gold stocks are holding a near perfect Wyckoff accumulation pattern. All should get ready to play this sector. Yet we must recognize that gold stocks are a one of the most crazy rides at the stock market fair, so play very carefully.

More from RTT Tv







GDX PnF chart from within the video

Click for popup. Clear your browser cache if image is not showing.




Important channels around the HUI.
...

more from Chart School

The Technical Traders

Treasuries Pause Near Resistance Before The Next Rally

Courtesy of Technical Traders

Our research team believes the US Treasuries and the US Dollar will continue to strengthen over the next 2 to 6+ weeks as foreign market and emerging market credit and debt concerns outweigh any concerns originating from the US economy or political theater.  Overall, the major global economies will likely continue to see strength related to their currencies and debt instruments simply because the foreign market and emerging markets are dramatically more fragile than the more mature major global economies.

We believe the US Treasuries may surprise investors by rallying from current levels, near price resistance, to levels above $151 on the TLT chart. 

Our belief ...



more from Tech. Traders

Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



more from Lee

Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>