On Thursday, the BigTrends Daily Scans service -- as usual -- delivered its top trading prospects for the day to the service's subscribers. All 18 possibilities (9 bullish, 9 bearish) were compelling, but one was particularly noteworthy... the bearish CCI signal given for Yum! Brands (YUM). See, while the bearish clue was clear, the stock's downside was augmented by a couple of other key bearish hints. They're worth a look, if only to illustrate how the best trades often have multiple signals working all at the same time. The CCI, or commodity channel index, is a single-line tool plotted on a scale of -100 to +100, plotting the difference between a stock's price change for any given bar and its average price change (per bar) over the course of a specified timeframe. High readings (above +100) of the commodity channel index say prices for that instrument are above their norm… more
On Wednesday afternoon of this past week, electric car maker and solar power company Tesla (TSLA) reported its fourth quarter earnings numbers. They were good, or bad, depending on your perspective. While revenue handily topped expectations of $2.19 billion by rolling in at $2.28 billion, the loss of 69 cents per share was even worse than the expected loss of... more
Ready to get started trading options? If you're brand new to option-trading and don't yet know the difference between a put and a call, then be sure to read through the first part of this two-part lesson before proceeding. The second part you're reading now looks at a couple of the nuances and oddities in how options are priced in... more
Puts, calls, strike prices, expiration dates… the lexicon can be intimidating to a newcomer. But, trading options isn't the wizardry it may appear to be from the outside. In fact, with just a few minutes worth of reading a trader interested in capitalizing on the power and benefit of options can be ready to do so. An option, in simplest... more
By Alex Rosenberg, CNBC As the Dow has marched to 20,000, investors appear to have become more and more excited about the mega-cap index. Some $4 billion have flowed into the SPDR ETF tracking the Dow Jones industrial average (DIA) since November. On a percentage basis, that dwarfs what has been added to the much larger SPDR ETF tracking the... more
The VIX has a negative correlation to stock market returns By Sue Chang, MarketWatch The CBOE Market Volatility Index, a measure of fear in the market, is trading at an extremely subdued level that is more symptomatic of a carefree market. But the mood on Wall Street is anything but, suggesting that the volatility index’s foray below 20 may be... more
Acampora thinks Wall Street is a believer in Trump pro-business promises By Mark DeCambre, MarketWatch Prominent market technician Ralph Acampora thinks the stock market has more room to run over the near term, despite a trend that has seen the Dow steadily walk back from the psychologically significant level of 20,000. Acampora told MarketWatch on Monday that the Dow Jones... more
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