Inside The Latest Home Sales Numbers

Sales of New and Existing Homes Slide in November, But… A month ago, a strong surge in sales of new as well as existing homes suggested the real estate (IYR) market (which never really began back-pedaling, but was stalling) was on the upswing again. In light of November's numbers, though, questions are once again raised. On the other hand, though the...

Using Island Reversals In Technical Analysis Charting

Candlestick Chart Analysis: Island Reversals Island reversals are a pattern on technical analysis chart that frequently — due to their abrupt and decisive nature — successfully mark  a turning point for that stock or index. Generally speaking, they are marked by a small cluster of bars that are completely isolated from the bars leading up to the first bar and...

Fibonacci Numbers & Indicators In Technical Analysis Charting

Using Fibonacci Lines in Trading To new traders, an understanding of what Fibonacci lines are and how they can be part of a technical analysis strategy may raise a few eyebrows. They're a pattern of numbers that were first exhibited by nature; flower petals, seashells, and even hurricanes and human faces exhibit a Fibonacci pattern in one way or another....

Housing Remains Healthy Ahead Of Fed

Housing Starts, Building Permits Jump in November Not that the decision hasn't already been made, but if Janet Yellen and the rest of the Federal Reserve's governors needed any more evidence that the economy was strong enough to withstand the downside of an interest rate increase, last month's housing starts and building permits numbers would do the job nicely. For...

Ex-Oil, Inflation Is ‘Healthy’ Enough For Fed Rate Hike

November Inflation Rates Leave Room and Reason for a Rate Hike Whether or not the U.S. saw any inflation last month is largely a matter of perspective. On a core basis (not counting food and energy) we did. When the plummeting price of gasoline is factored in though – despite lingering high prices in grocery stores – consumers weren't impacted...

Basics Of Calendar Spread Option Trading

Calendar Spreads Explained A calendar spread is simply a two-option trade that not only has a price-movement element to it, but also a time-based element. It's not entirely unlike a normal credit spread or debit spread, but the two options used to enter calendar spreads have differing expirations that effectively predict a particular price for the underlying stock or index...

What Is The VIX and How Is It Used?

What is the Volatility Index (VIX), and How do I Use It? The CBOE S&P 500 Volatility Index (VIX) — often just referred to as the "VIX" — is a gauge of future (predicted) volatility for the S&P 500 over the course of the coming 30 days. It's based on the price of a basket of S&P 500 index options …...

Retail Sales & Producer Price Inflation Boster Case For Fed Rate Hike

November Retail Sales, Producer Inflation Bolster Case for Rate-Hike Any lingering hopes that the Federal Reserve wouldn't raise interest rates when it has a chance to next week suffered Friday on the heels of news regarding last month's producer price inflation and retail spending. Both were strong enough – and in some ways better than expected – to bolster an...

What Is A Put/Call Ratio, And How Are They Used In Trading?

Put/Call Ratio: What Is It, and How is It Used? A put/call ratio is simply a comparison – a ratio – of the number of put options that trade on any given day relative to the number of call options that exchange hands that same. There are several closely-watched put/call ratios… some that are based on all the options that...

Using Put/Call Ratios For Contrarian Buy/Sell Signals

Put/Call Ratio: What Is It, and How is It Used? A put/call ratio is simply a comparison – a ratio – of the number of put options that trade on any given day relative to the number of call options that exchange hands that same. There are several closely-watched put/call ratios… some that are based on all the options that...
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