Posts Tagged ‘RCII’

XLF Put/Call Ratio Highest Since June 2010, trades Suggest Continued Pain For Financials

     Today’s tickers: XLF, EL, RCII & CY

XLF - Financial Select Sector SPDR Fund – Massive prints in XLF put options cropped up ahead of President Obama’s speech on plans to cut the budget deficit and amid heightened concerns regarding the European debt crisis over the weekend. Shares in the XLF, an exchange-traded fund that tracks the performance of the Financial Select Sector of the S&P 500 Index, fell 3.1% to $12.50 by 11:15 am ET as the President wrapped up his speech by reiterating the need for a balanced approach to the deficit issue. Large trades in December contract puts this morning suggest some strategists expect financials to worsen through the end of the year.

One bearish play, which yields maximum benefits if shares in the ETF drop more than 25% by December expiration, is one of the largest initiated on the XLF so far today. It looks like the investor responsible for the put spread purchased 75,000 puts at the Dec. $11 strike for a premium of $0.57 each, and sold the same number of puts at the lower Dec. $9.0 strike at a premium of $0.23 apiece. Net premium paid on the transaction amounts to $0.34 per contract. The trader profits on the spread if shares in the fund fall 14.7% to breach the effective breakeven price of $10.66 at expiration in December. Maximum potential profits of $1.66 per contract are available on the position should the price of the underlying plunge 28% to trade below $9.00 at expiration. Shares in the XLF last traded below $9.00 back in April 2009. Put options on the XLF are changing hands more than 10 times for each single call option in action as of 11:30 am in New York. The put to call ratio on the fund is currently at its highest since June 2010.…
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Mega Earnings Monday – 1,000 Reports This Week!

What a crazy week this is going to be!

Pre-Market we're hearing from BLK, CAT (are we building stuff?), EXP, HTZ, HUM, LO, TUES and TZOO and later we will hear from BSX, CHH, OLN, RSH, RCII, TXN (major) and my "friendbuddypal" Cramer's TSCM (if they are not delayed).  Revenues at The Street have crept back up this year in a recovery that pretty much mirrors the market.  The company does pay a nice 2.6% dividend, which works out to a nice $200,000 bonus on Jimmy's 2.1M shares (6.7% of the company) so you know that bonus will be a priority for the company.  Cramer was BUYBUYBUYing his own stock at $2.41 in January but sadly they have no options to hedge…  They might make a nice pick-up after earnings if they disappoint and head back to $3 or less.

I'm full of useful information on hundreds of stocks right now because I've been researching our new Buy List but I'm not pleased with what I've been seeing so far and this week's tidal wave of earnings, with 1,000 companies reporting means we're in no hurry to dip our toes in the water.  I told Members this morning I should probably be working on a Sell List, as it's much easier to find companies I want to short than ones I want to buy.  Even in the Weekly Wrap-Up, we featured a 1,900% downside hedge on the Russell to offset the 566% plays and other bullish plays we've begun to reluctantly take, just so we don't feel too silly in this runaway market. 

If you have never watched Jim Cramer discussing the sleazy, manipulative ways he used to game the markets – you really must take 10 minutes and watch this video, where Jim explains how any immoral bastard with $10M can yank the entire futures market around at will.  He prefaces one of his favorite strategies with "this is blatantly illegal but.. I think it's really important… these are things you MUST do on a day like today and if you are not doing it, maybe you shouldn't be in the game."  Are you playing the game or are you being played? 

The biggest game ever played may be unwinding as we speak.  Bloomberg reports that foreign-exchange profits from carry trades are disappearing as differences in central
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Monday Markets – Is Momentum Shifting?

We're still trying to get bullish, really we are

Yes we are reluctantly bullish and only technically bullish at that.  All we are asking of the markets is for them to take out our very simple levels and hold them for more than a day or two.    Those levels are (and have been since early September):  Dow 10,087, S&P 1,096, Nasdaq 2,173, NYSE 7,204 and Russell 623.  These are, according to the 5% rule, the levels we need to hold in order to establish a floor in the markets that justifies setting higher upside targets.  If they cannot be crossed, then these REMAIN our upside range targets and we need to start seriously considering the possibility that we may still get a pullback to Dow 9,650, S&P 1,020, Nas 2,075, NYSE 6,900 and Russell 575.

As I mentioned last week (and noted on David Fry's IWM chart), the Russell was the first to fail our 623 mark and will be our canary in the coal mine as they test 595, which is the 50 dma.  A failure there and the markets have little support all the way down to our June highs, our original breakout levels of Dow 8,650 and other levels you don't even want to think about on a Monday. 

$2.66 is another level we don't want to think about.  That's the average price of regular gasoline this weekend.  Despite 10% lower demand than last year when December gasoline averaged $1.66 a gallon.  What's a dollar a gallon between friends right? 

Well, actually since US consumers use 63M barrels of gas each week, and a barrel happens to be 42 gallons, it happens to be about $10.5Bn a month taken our of consumer's pockets.  That's cash, after-tax money – gone!  Money they won't be able to give to all those nice Russell companies for Christmas this year.  Remember how much that $160Bn stimulus helped the economy last year?  How much do you think a $120Bn mugging hurts the economy this year? 

The timing couldn't be worse – last year, gas prices flew down and helped people make it to the mall for Christmas, this year already – as we can see from Amazon's great quarter, many people will be skipping the malls and buying on-line.  With 10% of the workforce…
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Phil's Favorites

South African scientists who discovered new COVID-19 variant share what they know

 

South African scientists who discovered new COVID-19 variant share what they know

Health care workers and patients in the temporary outside area Steve Biko Academic Hospital created to screen and treat suspected Covid-19 cases in Pretoria. Alet Pretorius/Gallo Images via Getty Images

Courtesy of Willem Hanekom, Africa Health Research Institute (AHRI) and Tulio de Oliveira, University of KwaZulu-Natal

Late last year the ...



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Biotech/COVID-19

South African scientists who discovered new COVID-19 variant share what they know

 

South African scientists who discovered new COVID-19 variant share what they know

Health care workers and patients in the temporary outside area Steve Biko Academic Hospital created to screen and treat suspected Covid-19 cases in Pretoria. Alet Pretorius/Gallo Images via Getty Images

Courtesy of Willem Hanekom, Africa Health Research Institute (AHRI) and Tulio de Oliveira, University of KwaZulu-Natal

Late last year the ...



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ValueWalk

What to Make of GameStop Corp (GME)'s Parabolic Move

By Jacob Wolinsky. Originally published at ValueWalk.

Berna Barshay’s email to investors discussing what to make of GameStop Corp (NYSE:GME)’s parabolic move.

Q4 2020 hedge fund letters, conferences and more

GameStop Corp (GME) Stock Up 145%

At its intraday high this morning, shares of video-game retailer GameStop (GME) were up 145%...

When trading started to level out earlier this afternoon at around $80, the stock had retraced much of its big move to $159 and was back to up "just" 23%, but today's gain comes on top of a 51% jump on Fr...



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Zero Hedge

Gamestop Goes Red After More Than Doubling Just Two Hours Earlier

Courtesy of ZeroHedge

Update (1220pm ET): It was only "natural" that in a market as broken as deranged as this one, that Gamestop - which less than to hours today was up more than 100%, hitting an all time high just over  $159 - is now red for the day, having dropped as low as $60/share. There is nothing one can say here, besides sit back and watch the grotesque farce formerly known as "the market" that the Federal Reserve has created.

* * *

It's just getting more insane by the minute and at last check Gamestop hit a record $159.19 per share, up almost triple on the day and bringing it market cap well above $10 bil...



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Digital Currencies

Ethereum Surges To New Record High As DeFi Boom Re-Accelerates

Courtesy of ZeroHedge View original post here.

Coins that power decentralized finance (DeFi) protocols are soaring recently as bitcoin treads water.

While bitcoin grabbed all the headlines early on in the year, it is the rest of the crypto space that is stealing its thunder most recently as Ethereum, the backbone of the smart contracts that define much of the DeFi space, has drastically outperformed...

Source: Bloomberg

That is the highest for ETH relative to BTC since

...

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Politics

Far-right groups move to messaging apps as tech companies crack down on extremist social media

 

Far-right groups move to messaging apps as tech companies crack down on extremist social media

Far-right groups like the Proud Boys, seen here marching in Washington, D.C., on Dec. 12, are increasingly organizing their activities on messaging services like Telegram. Stephanie Keith/Getty Images

Courtesy of Kevin GrishamCalifornia State University San Bernardino

Right-wing extremists called for open revolt against the U.S. government ...



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Kimble Charting Solutions

Bitcoin Parabolic Rally Reversal Faces Big Support Test!

Courtesy of Chris Kimble

One of the biggest breakouts of 2020 came by way of Bitcoin. And it was epic.

The coronavirus crash saw the cryptocurrency retest its 2018 lows before rocketing higher in parabolic fashion.

Did Bitcoin Peak? What’s Next?

Today we examine a “weekly” chart of Bitcoin, highlighting its parabolic rally… and recent reversal lower.

The rally in Bitcoin surged all the way to the 361% Fibonacci extension level at (1) before creating the largest bearish reversal in years.

In just a few weeks time, Bitcoin is testing its 261% Fibonacci level near 31,000 at (2). This is a big test of support for the cryptocurrency. A “weekl...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 11 July 2020, 05:26:16 PM

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


Comment: This is lack of liquidity means support is likely to break if it is tested hard!



Date Found: Saturday, 11 July 2020, 09:51:58 PM

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


Comment: Nasdaq losing momentum.



Da...

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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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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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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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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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