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

Momentum Monday - Rotation Rotation Rotation is The New Location Location Location

 

Momentum Monday – Rotation Rotation Rotation is The New Location Location Location

Courtesy of Howard Lindzon

Happy Monday everyone.

Not much has changed in the last week.

Tech leaders are correcting and the money is flowing into other stocks and markets…not out of the market.

The promise of low interest rates and money printing has most people focused on being in the markets.

As always, to kick off Momentum Monday’s, Ivanhoff and I tour the markets for what we see and like and are thinking. You can watch/listen right h...



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Biotech/COVID-19

SARS-CoV-2 infection can block pain, opening up unexpected new possibilities for research into pain relief medication

 

SARS-CoV-2 infection can block pain, opening up unexpected new possibilities for research into pain relief medication

The spike protein on SARS-CoV-2 interferes with pain perception. SEBASTIAN KAULITZKI/SCIENCE PHOTO LIBRARY/Getty Images

By Rajesh Khanna, University of Arizona

Imagine being infected with a deadly virus that makes you impervious to pain. By the time you realize you are infected, it’s already too late. You have spread it far and wide. Recent findings in my lab suggest that this scenario may be one rea...



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Zero Hedge

2020 Has Been A "Nightmare Year" For America, And The Economic Fallout Is Just Getting Started

Courtesy of Michael Snyder via The Economic Collapse blog

Most of us have never experienced a year that has been as tough as 2020 has been for our nation.  It has just been one major crisis after another, and the month of September has brought us even more trouble.  The worst wildfire season in the history of the state of California has been making headlines day after day, and now the passing of Ruth Bader Ginsburg threatens to escalate the political turmoil in this nation to an entirely new level. 

Many had such high hopes for 2020, but at this point this year has been such a disaster that USA Today is calling...



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Kimble Charting Solutions

Could It Be "Schitts Creek" For Technology Stocks If Selling Starts Here?

Courtesy of Chris Kimble

The Nasdaq has been the unparalleled leader of the stock market in 2020, having rallied furiously off the COVID-19 crash market bottom in March.

But all of the excitement around tech stocks and the comeback in the stock market may be coming to an end… that is, if a key Fibonacci price target has anything to do with it!

In today’s chart, we look at the long-term “monthly” chart of the Nasdaq Composite Index (IXIC) and focus in on the 18-year rally.

As you can see, the Nasdaq peaked in 2000 and bottomed in 2002. Applying Fibona...



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ValueWalk

Global Banking Stocks Hit Hard By FinCEN Leak

By Gorilla Trades. Originally published at ValueWalk.

Commenting on the impact of FinCEN leak on global banking stocks and today’s trading Gorilla Trades strategist Ken Berman said:

Q2 2020 hedge fund letters, conferences and more

The major indices are all trading considerably lower at midday following the most bearish overnight session since June. The S&P 500, the Nasdaq, and the Dow all hit new correction lows in early trading, but the tech benchmark has been slightly stronger than its peers. The troubling European COVID trends reignited the "lockdown trade" and put pressure on the most sensitive industries and cyclical issues, in...



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Politics

Can Trump and McConnell get through the 4 steps to seat a Supreme Court justice in just 6 weeks?

 

Can Trump and McConnell get through the 4 steps to seat a Supreme Court justice in just 6 weeks?

A political battle is shaping up over the confirmation of the next Supreme Court Justice. Jose Luis Magana / AFP/Getty Images

By Caren Morrison, Georgia State University

United States Supreme Court Justice Ruth Bader Ginsburg died on Sept. 18, thrusting the acrimonious struggle for control of the Supreme Court into public view.

President Trump and Senate Majority Leader Mitch McConnell have already ...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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