Central Bank intervention works and sometimes it works a little too well. However, what happens when Central Bank policies fail to generate growth? Japan is the canary in the coal mine for that scenario and a country that we should be watching closely. At some point, the U.S. will probably have the misfortune of finding out what happens when accommodative policies stop working, but for now everyone wants to follow the lead of
The global financial landscape is ever-changing. And each year new themes and trading setups emerge. But taking advantage of these opportunities in depends on your ability to see the setups and develop trading strategies that conform to your skills set. Here are some awesome reads from around the web. Hope
The global financial landscape is ever-changing. And each year new themes and trading setups emerge. But taking advantage of these opportunities in depends on your ability to see the setups and develop trading strategies that conform to your skills set. Here are some awesome reads from around the web. Hope you enjoy this weeks Top Trading Links. Market Insights @PeterLBrandt digs into the numerous major patterns in global market indices.
Silver prices have enjoyed a nice rally in the early going of 2015, reaching up as high as $18.50 per ounce. The recent thrust higher likely has to do with European concerns and tension around the Swiss National Bank situation and the ECB bond buying program, but either way, price has moved higher. It’s also worth noting that the rally has landed silver right in thick of heavy price resistance.
There are many causes for performance anxiety which can leave a new trader with too much fear to trade with focus. And this fear often sends them out of the markets with the 90 percent that did not make it. This fear can arise from past losses that were so big and traumatizing that a trader can’t bear the potential of repeating a mistake like that with all the emotions tied to
Silver has been setting up pretty well for a trade. I noticed this a couple weeks back and posted about a pairs trade with Copper (long Silver, short Copper). You can read that post here. Why was I interested in this trade? Well, in short, Silver looked like it was ready to move higher while Copper still looked week. And this was visible on the Silver Copper ratio chart. The chart below
Since 2012, we have been writing about the developing bearish trend in copper, and in subsequent years the pattern has unfolded mostly as expected. Now price is testing the first major support below its October break. Traders with a fairly long time frame might look for an opportunity to sell from a bit higher. In the big picture, we believe copper prices are tracing a large three-wave corrective pattern down
With the start of 2015 we have begun to see movement in international markets after the focus has been squarely on U.S. equities over the last two years. After the first few weeks of January, international markets have put in a stint of outperformance relative to U.S. indices. When this begins to happen I like to find some of the stronger markets among the international group. To do this we
Apple’s stock (AAPL) is currently 8% below the high set in late November and bullish traders can set up a nice short-term AAPL options trade using a bull put spread. If a trader believed the recent low of $106 will hold, they could use the $106 strike as the short put and the $104 strike as the long put. Currently, this AAPL options trade offers a roughly 43% return on
There have been several events that have occurred in the last days and weeks that, in my opinion, signify that the inherent market risks around the globe are increasing. When a risk manager uses the term ‘risk’, what he or she is really talking about is uncertainty. If I own a 10-year US Government Bond that is paying 2% then I expect to receive the interest on it and for
The 200 day simple moving average (SMA) is a widely watched indicator of health for the U.S. Stock market. When price is trading above the 200 day SMA, most market participants can agree that a longer term up-trend is either in place or developing. When price is trading below the 200 day SMA, most people recognize that the up-trend has stopped or is reversing. That being said, it’s dangerous to