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With the S&P 500 Index (SPX) (SPY) breaking below both its recent range and the March 2012 lows, fear is starting to spread among option traders. We've seen the CBOE Volatility Index (VIX) (VXX) close above 21 for two days in
Though the second losing week in a row wasn't as bad as the first, in some ways, it was more damaging. We saw lower lows made by most of the major indices, and even the ones that didn't were pushed
"It's deja vu all over again" — Hall of Fame New York Yankee (and legendary quote machine) Yogi Berra, after he witnessed Mickey Mantle and Roger Maris repeatedly hit back-to-back home runs. (from Wiki) We previously did some research after the
In this piece we re-visit an article from 2009 about the high implied volatility on a stock's options ahead of earnings. This case study is a useful, timeless example with real prices that shows the considerations an advanced option trader faces.
What a week! Stocks got whacked on Friday, we saw a surprise winner in a great Kentucky Derby, employment levels managed to turn things around before they got dire (sort of), and oil is back under $100 for the first
Why the U.S. Dollar is Critical for the S&P 500 Index Similar to the demand pull that the warmer than usual spring has had on macroeconomic data, the warmer spring caused me to have an earlier than usual sinus infection
Magazines' rosy outlooks often followed by market downturn When United-ICAP analyst Walter Zimmermann set eyes on the big, boldface, tabloid-esque headline "DOW 15,000" on the Feb. 13 cover of Barron's, it was akin, he says, to a black cat crossing
Well, the bleeding at least stopped. After two weekly losses, stocks finally managed to close in the black again in spite of economic data that tried to torpedo the effort. Does the bullish move change the tide of the overall
Fingerprints Point Higher Although I hold strong beliefs about the fragility and foundation of the equity market’s first quarter strength, as a trader I reserve the right to drop some of that dogma and prepare for a continuation of what
The good news is, the market managed to snap the losing streak at only two weeks, carving out a modest gain last week. The bad news is, that's among the only good news there is. Economic Calendar Though retail sales for
Secular Bull and Bear Markets Was the March 2009 low the end of a secular bear market and the beginning of a secular bull? Without a crystal ball, we simply don't know. One thing we can do is examine
Triple Timeframing Critical Support for Gold The gold market has been in a deeper retracement than many traders expected, and now price challenges a critical support level as seen from all three major timeframes. Let's start with the Monthly Frame
The week started out sour, and ended sour. A big bounce on Wednesday and Thursday wasn't enough to change the fact that stocks just took their second weekly loss in a row… for the first time since November. As if
A parabolic rally marks the terminal stage of a bullish trend. Every rally in history that went parabolic ended in a drastic drop. Many have never reclaimed the heights of their glory days. Crowds pour their money into parabolic moves,
We've previously discussed that the myriad of uses available in option trading has contributed to their ongoing growth and acceptance among more and more traders & investors. Similarly, Exchange Traded Funds (ETFs) continue to show growth because of advantages they
Despite the great start to last week on Monday when the S&P 500 hit a new 52-week high of 1422.38, it was all downhill from there. Yet even with the loss following some alarming employment data, the market is still
Way back in April 2009 (remember that March 2009 was a huge market bottom), we wrote about how our research showed April to be a very bullish month historically. The fact that this isn't a widely known and accepted market calendar
All over the map. That's the only way to describe last week… all over the map. We got off to a great start on Monday, dipped into the red for the week by Thursday, then started a rally that carried
Option Trading: A Basic Explanation of Debit Spreads Welcome to the expansive world of options. The option trading reality exists in three dimensions and far more combinations of potential positions than does the one-dimensional world of the stock trader. The view
If you're a BigTrends Insider, you receive a complimentary email each morning that contains our featured Daily TrendWatch article (which we've been publishing since 1999), links to recent articles, notices of upcoming events, and option/investing education. The quick signup box to be
