Whenever the price of a stock goes down after a superb earnings report, there tends to be some confusion among traders. If you visit discussion forums on social media sites such as Reddit, you will find some people asking questions such as “Why isn’t the stock rising when the earnings report beat?” or “Why is […]
This week is a shortened trading with markets closed Monday, June 20 for the Juneteenth holiday. There’s no other way to put it: the price action in the US stock market this week was ugly, with the S&P 500 losing over 5% on the week, officially putting the index in “bear market” territory, meaning the […]
The S&P 500 continued its downtrend pattern this week, which we put under the microscope with skepticism last week. Those questions were answered, and the S&P is ending the week near its previous lows with the path of least resistance being new lows. The nature of the bullish pullback and continued consolidation near the highs of […]
If you’re like most traders, you specifically avoid “event volatility” like earnings reports and key economic data releases. But you should know that the majority of volatility is attributable to these binary catalyst events. Not knowing how to trade around these significantly cuts into your opportunity set. One of the cornerstones of volatility events is […]
Hope everyone had a great Memorial Day weekend. This is the unofficial start of summer, especially in the finance world, and typically marks an overall decrease in volume as Wall Street starts to split its focus between Fire Island, the Hamptons, and work. Following the long weekend, we had a shortened trading week this […]
We’re closing out this week on the seventh consecutive red weekly bar on the SPY weekly chart. Words like bloodbath are being thrown around, and there’s definitely some pain out there. Specifically, small caps, which are a good barometer for risk-taking appetite among equity investors, are taking a beating. SPY weekly chart Looking to the […]
What’s up, everyone? Thanks for checking out this video. This is going to be a concise beginner’s guide to the stock market. When I checked out some of the other videos on the stock market, while some of them said they were for beginners, they were an hour, hour and a half long. And they […]
US stocks continue their weakness this week, with the S&P 500 touching down at $4136, sitting right at its significant support level established in mid-March. Volatility is elevated again near the recent highs with the VIX sitting at 34 as earnings season hits its midpoint. When there’s persistent weakness in stocks, everyone comes out of […]
After weeks of talk that Elon Musk would buy Twitter (NYSE: TWTR), he has made it official and is now the sole owner of the social media company. Musk won his $44 billion takeover fight for the company on Monday, after its board dropped its opposition to his bid. The San Francisco-based company agreed to […]
Gamma hedging has been in the headlines a lot lately, but what is it exactly? Intro The rise of Robinhooders and growth of retail options trading after COVID sparked a cottage industry of traders and analysts who analyze options market order flow to decipher how options market makers are positioned and take advantage of their […]
