Other Side of the Boat

10Mar12:47 pmEST

Toying with Fear

Despite the glaringly weak action in small caps and financials this morning, in effect leading the market lower after the initial ECB pop, volatility is still fairly subdued. True, the market may be punting on making a bonafide directional move before The Fed next week. But I suspect if the VXX, VIX ETF, clears the $23 line and holds over it,...

10Mar10:55 amEST

Mario Announces That Gluten Free Pasta Will Cure Diabetes in Europe

Another "bazooka" came out of Europe this morning, though based on the various reactions across equity markets it hardly seems like a panacea and more like an attempt buy Draghi to argue that the monetary equivalent of his gluten free pasta will cure deflation diabetes across the pond. To be sure, those who tried to get cute and lean into Euro...

09Mar5:12 pmEST

Stock Market Recap 03/09/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

09Mar3:24 pmEST

Hang 'em High, Hang 'em Low

Stocks are still drifting into the ECB tomorrow, with less feeling like more in general, in terms of price action and setups. The XBI, ETF for the small/mid-cap biotechnology issues, illustrates what is happening with many charts here--The 50-day moving average acted as resistance earlier this week. But now the 20-day moving average is being...

09Mar12:50 pmEST

Flatter Than Schiacciata Into Draghi

In front of another European Central meeting tomorrow where Mario Draghi, president of the ECB, must likely deliver the goods in terms of sufficiently easing to please markets. Unlike in December, Draghi knows he simply cannot disappoint, leading to high stakes and a virtual wildcard of additional risk for just about any trades across all asset...

09Mar10:47 amEST

Extend and Defend

On the back of another short squeeze higher in crude oil, post inventory report this morning, stocks are attempting to build on their opening gains and bounce back from a poor close yesterday. For context and for trading, we are keying off the IWM (ETF for the Russell 2000 Index small cap stock) 30-minute chart, seen below. The bear flag...

08Mar5:00 pmEST

Stock Market Recap 03/08/16 {Video}

The following video is a brief, condensed version of the Stock Market Recap which I present each evening to members of Market Chess Subscription Services. In the longer version, I offer tons of actionable trade ideas, educational content, and in-depth objective analysis across all markets. If you enjoy my videos and blog posts, then please...

08Mar3:28 pmEST

JetBlue Reaching a Tipping Point

Some of the seemingly invincible airlines, such as JBLU, may finally be hitting that tipping point. On the weekly JBLU chart, below, all of the rallies and swoons in recent quarters looks to have been part and parcel of a massive top, of the head and shoulders variety. I will discuss this further, with specific price levels, in the recap...

08Mar12:41 pmEST

Now We Find Out if the Paper Tigers Are for Real

The price action in the precious metals miners in recent sessions, while resilient, smacks of a market experiencing some short-term shakeouts to keep latecomer momentum chasers honest. We sold miners into the rally on Friday, and are now looking for a lower risk reentry, provided that the paper tigers of yesteryear do not reappear in the...

08Mar10:50 amEST

Other Side of the Boat

The action this morning in the market is nearly opposite what we saw yesterday with biotech, miners, and small caps all leading to the downside while FANG an the likes of NKE show relative strength. This type of rotation may be a function of money simply being shuffled around looking to make something happen, instead of flowing with a more...