If you like the lack of drama and relative consistency the market has served up of late, you might not want to get used to it. Once July becomes August we could see some turbulence kicked up, and do stocks more harm than good. That's the way BigTrends.com's lead analyst and President Price Headley sees it anyway, as he explained on CNBC's The Rundown this past weekend. He explained of the persistently low Volatility Index: "Usually in the short-term low volatility is good for stocks. It's one of those strange things where it correlates very positively with the next couple of weeks being pretty firm for stocks. But, I think once we get past July batten down the hatches and expect volatility to increase. " Headley went on to point out the Volatility Index (or VIX) is actually below 10, and has been below 10 for some time now. In… more
Stocks may not have ended the week on an especially bullish foot, but it doesn't matter. The market was bullish enough to log a gain last week, reaching record highs in the process. You have to follow the momentum, which is still bullish overall. On the other hand, this remains a tricky situation. Things continue to move higher and higher,... more
A couple of weeks ago our Credit Spread Trader service booked a 25% gain on a RH (RH) — you know it better as Restoration Hardware — option trade. On the surface it looked like just another trade, and in most regards it was. As is so often the case though, the RH trade "worked" because a couple of noteworthy... more
There's an old saying… nothing lasts forever. It's true in most facets of life, including the stock market. Winners eventually become losers, and losers eventually become winners again. The trick is figuring out when things are changing. Spotting such shifts early can often mean big trading opportunities. With that as the backdrop, we're starting to see some rotation among the... more
Equity prices have been rising steadily, and now there might be an acceleration By Nigam Arora, MarketWatch The stock market has been going straight up. And a new signal has just been given, showing that it’s possible that you haven’t seen anything yet. Let’s start with a chart to understand this. Chart Please click here for the chart, which compares... more
Buckle up, because the party's about to begin. We're soon going to see if the beleaguered bullish effort of late was the right call. Here's a closer look at what to expect. —————————————————— It's officially here. That is, the second quarter's earnings season has begun. A little more than 5% of the S&P 500's constituents have chimed in already about... more
It's still a little too soon to say everything is fine, but it's not too soon to acknowledge the possibility that the homebuilding market isn't in the dire straits some feared in may be in. Per this morning's report from the Census Bureau, last month's starts and issued permits were surprisingly, pleasantly strong. The raw numbers: June's total starts were... more
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