Stock Market Recap 01/05/15 {Video}

07Jan11:19 amEST

Stairway Down

I present the 30-minute chart for the small cap ETF, IWM, illustrating the lower highs and lower highs for the Russell 2000 Index stocks dating back to New Year's Eve. The current bounce since yesterday looks to be a mere bear flag, but shorts need to keep an open mind that it may fail to resolve lower, much like the RSX (Russia ETF) failed...

07Jan10:38 amEST

About Those Sexy Rumors...

Just a reminder that for every sexy rumor we hear, such as about TWTR yesterday , most of them turn out to be duds practically designed for you to get hustled out of your knee-jerk call buying sprees. This morning, TWTR is seeing some selling at its declining 50-day moving average, with its CEO selling a chunk of shares. The stock remains in...

06Jan4:42 pmEST

Stock Market Recap 01/06/15 {Video}

The following video contains coverage of relevant broad market issues (for equities) in addition to plenty of actionable trading ideas across other asset classes. Feel free to pick and choose which ideas and parts of the analysis fit your style. Always properly manage your downside portfolio risk for any trades taken. Enjoy tonight's...

06Jan2:34 pmEST

Update on My Positions and the Market

With some profit cushion on my AAL GOOG LOW V shorts at the moment, I am standing pat with equity shorts. While I am tempted to keep adding to them, I can see the market staging a brief bounce before heading lower. So, I am staying patient and methodical. In addition, my NUGT SLW longs are picking up significant alpha in this market, thus far...

06Jan2:11 pmEST

Solving the Coffee Problem

After a spectacular first several months of 2014 and countless reports of favorable fundamentals, the coffee commodity has since settled into a whippy range. The issue is whether we see a resumption of the impressive strength from early last year, or instead if it was an aberration in an otherwise multi-year downtrend. On the weekly chart for...

06Jan11:38 amEST

In the Company of Adult Trading

Any levered ETF is effectively trading in "adult swim" territory, long or short, equities or commodities, due to the high beta and gapping nature of the instruments. Thus, "buy and hold" philosophies for them can be deemed a disaster waiting to happen, due to the decaying nature of many of them, on top of the price swings and volatility....

06Jan11:06 amEST

Pressing a Bet; Chess Moves

With the trade thus far working in my favor, and the market cooperating for shorts, I added to my GOOG short here at $516.46. Back on Friday in this blog post , I entered the trade at $524.41, playing for a breakdown to fresh 52-week lows. The position was roughly 4% of my trading capital, with a protective stop-loss above $540. The position...

06Jan11:01 amEST

My Way of Playing Oil to Stabilize Soon; Chess Moves

I went short AAL, a major airline, in lieu of trying to catch the falling knife that has become crude oil. On a standalone basis, AAL looks ripe to follow some other major airlines lower today from its extended conditions on virtually all timeframes. But if crude can at least find a temporary low soon, or stop going down altogether, then...

06Jan10:21 amEST

Scale and Trail a Winner; Chess Moves

Into this opening pop higher in metals and miners this morning, I sold half of my NUGT long at $14.47. I announced an entry into a long NUGT position yesterday in this blog post . My entry was down at $12.84. So I will now trail up my protective stop-loss to that entry price. I may very well add back to NUGT. But trading around such a...

05Jan4:45 pmEST

Stock Market Recap 01/05/15 {Video}

The following video contains coverage of relevant broad market issues (for equities) in addition to plenty of actionable trading ideas across other asset classes. Feel free to pick and choose which ideas and parts of the analysis fit your style. Always properly manage your downside portfolio risk for any trades taken. Enjoy tonight's...