This is called the "Steepener" trade and refers to a mean reversion in the yield curve. From current level of (-38 basis points, or -0.38%), I'm targeting a move back to 1.00%, or ~70bp, risking down to about (-45bp), or about (-13bp) downside.
Yield curve steepeners seek to gain from a greater spread between short- and long-term yields-to-maturity by combining...
I'll do my best to leave the politics out of this.
Mass shootings are in the spotlight again, and it would be obvious in hindsight to see a boost in demand and sales for security systems such as metal detectors.
NYSE:GWW , who just teamed up with The Mom Project, had $13 billion in sales in 2021 and is a leading distributor with operations in North America,...
There's no kind way to put it - this is close to a major sell signal with lower price implications. Tread cautiously.
Other tools that can be used to hedge equity market correction:
1. Selling covered call options to collect premium
2. Going to cash
3. Buying a short ETF (not my favorite)
4. Buying put options (this is no longer feasible as base case due to...
Signal was selling the break line of the descending pattern that formed in DX Futures, with a stop-loss at the high of the breakout day.
Do we stop for chop here at support, or is this a significant FX trend market change?
Can the Fed really continue to raise interest rates with real world business shutdowns in America's largest cities continuing due to Omicron...
META, formerly known as that one company, set to explode after news of changing its name to META in anticipation of the forecoming immersive digital experience they intend to build. FB/META will win in this space because of early mover advantage and capital to acquire growing leaders.
Inverted Head and Shoulders (bullish) at trendline support is a BUY...
NYSE:AG MCX:SILVER1! AMEX:GDX TVC:GOLD
It takes zooming out at least 20 years to feel good about buying gold or silver, traditional inflation hedges.
It's been a boring asset class since the Federal Reserve began its most recent monetary experiment, but as we all know, the piper will get paid.
Regardless - silver (shown) and gold are hinting at cycle price...
I learned a handy tool used to manage risk under certain circumstances - the Three Day Trailing Stop Rule (3DTSR)
In this example, I actually fade the 3DTSR, but being able to execute different styles of trading strategies reflects an understanding of them, while acknowledging that no system or strategy used in markets will be perfect.
Energy stocks, crude oil, and the XLE energy ETF all flashing buy signals. $100 oil looks invitable.
From failed moves come fast moves, and oil/energy stocks failed an attempted breakdown below the neckline.
A few favorite long ideas: $LPI, $AMPY, $XLE, CL1 (futures), $XOM
Snowflake is a cloud computing-based data warehousing company based in Montana, named after the founders' love for winter sports. I like winter sports, and the ticker SNOW is aesthetically appealing in my portfolio.
The trade setup was straightforward. The company IPO'd in 2020 at $220, and after one quarter that saw investors take price up above $400 per share,...
Aside from Crypto, I've had the most success in the last decade trading crude based on a combination of technical analysis (classical charting) and trading the news (economic indicators, such as OPEC releases).
Between March - June 2021, Crude oil prices formed a cup and handle that concluded with price reachings its target just above $75. Price then corrected,...
Chainlink is a real world company, but also a protocol with a native token that can increase (or decrease) in value as Chainlink's network effect grows. A better description of Chainlink's network of oracle nodes and how the protocol attempts to solve the challenge of bringing real world data to the blockchain can be found here: www.yahoo.com...
Four months range-bound, this low-volatility ETF includes 600 constituents and offers a tiny 0.10% fee for the more passive, but still risk inclined investor (these are small cap growth oriented stocks).
The pattern boundaries are clear, and volatility is relatively low vs. historical. Price action above $235 would confirm a breakout to the upside, while a move...
XLM/BTC has been rangebound for nearly a year. This week, from May 10 - May 14, XLMBTC probed outside of its range before breaking out and closing at a new 1 year high. This generated a BUY signal for me in XLMBTC, and I am ID'ing the pattern as a Head and Shoulders bottom (trend reversal).
Price would need to move below the low of the week to negate this...
Ethereum decisively breaking above $2,000 today to a new all-time high. I kept some ETH through this consolidation, but added a new position on this breakout. A move to at least $2,400 (20%) is expected based on the width of the consolidatioin being applied to the breakout level. Using the low of the day or the centerpoint of the consolidation is a reasonable...
Price is so far well within its trend channel. I don’t know what the hype is all about.
If we close consecutively below the channel we may have much further to go given the state of affairs, but that’s always the case.
As a trend follower I swallow my pain and BTFD.
Current price action in $DXY is a strong analog of that in November 2020. Funds are short, and while the direction of the trend is down, a strong rally could impact recent gains in commodities and potentially have negative impact on equities and bitcoin.