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."

 


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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…
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Phil's Favorites

Opposite of Conventional Wisdom

 

Opposite of Conventional Wisdom

Courtesy of 

There was an article in the New York Times that highlighted the reversal of previous findings in medicine.

Of more than 3,000 studies published from 2003 through 2017 in JAMA and the Lancet…more than one of 10 amounted to a “medical reversal”: ...



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Zero Hedge

WTI Extends Losses After Smaller Than Expected Crude Draw

Courtesy of ZeroHedge. View original post here.

Oil prices plunged today as Trump and Pompeo defused some tensions with Iran and geopolitical risk premiums were squeezed out suddenly.

“Bullish catalysts are in short supply,” analysts at London-based broker PVM Oil Associates Ltd. said in a note to clients.

“The Gulf Coast of Mexico hurricane premium is fading as offshore operations in the region resume. At the same time, the U.S. shale engine continues to give oil bulls a sleepless night.”

API

  • Crude -1.401mm...



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Kimble Charting Solutions

U.S. & Euro Financials Lagging Big Time! Should Stock Bulls Be Concerned?

Courtesy of Chris Kimble.

Historically its been positive to see Financials doing well at the same time the broad market is pushing higher! If financial stocks are lagging bit time, should stock bulls be concerned?

This chart compares banks and in the U.S. (XLF) & Europe (EUFN) to the S&P 500 over the past 18-months.

Currently, XLF is lagging the S&P by more than 11...



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Insider Scoop

Earnings Scheduled For July 16, 2019

Courtesy of Benzinga.

Companies Reporting Before The Bell
  • Goldman Sachs Group Inc (NYSE: GS) is projected to report quarterly earnings at $5.00 per share on revenue of $9.13 billion.
  • Domino's Pizza, Inc. (NYSE: DPZ) is expected to report quarterly earnings at $2.02 per share on revenue of $836.92 million.
  • JPMorgan Chase & Co. ...


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Digital Currencies

Bitcoin Breaks Back Below $10k, Crypto-Crash Accelerates As Asia Opens

Courtesy of ZeroHedge. View original post here.

Update 2010ET: Having briefly stabilized after this morning's weakness, cryptos are tumbling once again as Asian markets open.

Bitcoin has broken below $10,000 again...

*  *  *

While all eyes are on Bitcoin as it slides back towards $10,000, the real mover in the last 12 hours has been Ethereum after...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker.

Charts show us the golden brick road to high prices.

GLD Gann Angle has been working since 2016. Higher prices are expected. Who would say anything different, and why and how?

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



The GLD very wide channel shows us the way.
- Conservative: Tag the 10 year rally starting in 2001 to 2019 and it forecasts $750 GLD (or $7500 USD Gold Futures) in 10 years.
- Aggressive: Tag the 5 year rally starting in 1976 to 2019  and it forecasts $750 GLD (or $7500 USD Gold Futures) in 5 years.

Click for popup. Clear your browser cache if ima...



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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...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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

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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...

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