Investing Research

5th Longest Period In 50 Years Without 10 Percent Correction Being Tested Now

It’s been a while since the S&P 500 (SPX – Quote) had a 10 percent correction. To be precise it’s been 38 months! (See attached table below). As you can see, this is the 5th longest streak in the past half century. This table also highlights that the streak of months

Recent Posts

Pre-Market Chart Watch: Russell 2000 Ready To Breakout?

Volatility has returned to the markets and with it has come increased beta. This likely has many traders rejoicing, but considering the big move yesterday and pre-market move higher today, it may depend on directional bets. That said, the iShares Russell 2000 ETF (IWM) is nearing an important juncture. Just two days ago, the Russell 2000 was sitting on the brink of a deeper correction, holding near the intersection of

5th Longest Period In 50 Years Without 10 Percent Correction Being Tested Now

It’s been a while since the S&P 500 (SPX – Quote) had a 10 percent correction. To be precise it’s been 38 months! (See attached table below). As you can see, this is the 5th longest streak in the past half century. This table also highlights that the streak of months without a 10 percent correction in the 1990’s was twice as long as the current streak. Now let’s check out

SPX Offers Potential 39% Return For Bearish Traders

The S&P 500 (SPX) has taken a bit of a beating recently and (so far at least) Santa Claus has not come to town. One trading opportunity for those traders with a bearish bias over the next week or so is a Bear Call Spread using the 2000 strike as the short call and the 2025 strike as the long call. As of Tuesday’s close, this trade offered a roughly

Will Russia’s Market Woes Cause Decoupled US Stocks to Crater?

Most traders speak today of the bull run of the mid-to-late 1990s (place Greenspan’s 1996 “Irrational Exuberance” comment right at the epicenter and you’ll know the period I’m talking about) with a far-off look of nostalgic bliss (those who were there) or a kind of wonderment and hushed veneration (from those who weren’t). The period’s mythos is entirely grounded in fact, leading right up to the full complement of outlying

Correlation Watch: Crude, Oil Services, and The Loonie

Why am I looking for SUPPORT in Crude Oil and the Oil Services Index (OSX)? Because, as you will see, they correlate nicely to the US Dollar (USD) vs. the Canadian Dollar (CAD/Loonie) and as a spot FX trader/investor I like to see as many correlations as I can. It’s that simple… Am I trying to “catch the falling knife of crude?”  No Am I trying to “make a great call?”

2015 Market Outlook: The Consumer Discretionary And Staples Sectors

One of the most important functions in my research is tracking sector performance. It is deeply imbedded within my broader macro work, as I find that drilling down into each sector allows me to gauge the overall health of the financial markets. It also assists me in locating areas of the market that I want to focus my investment strategies on. For more on my approach and to read my other

S&P 500 Technical Support Update

It took just 6 days to wipe out nearly 100 points on the S&P 500 (SPX – Quote). With all eyes looking forward to a “Santa” rally, many were caught off guard. For the record, the Santa rally typically doesn’t start until next week, so we may still get one… albeit from lower levels. Here’s one of my tweet’s from last Thursday that summed up the action heading into Friday: Bears

2015 Market Outlook: The Materials And Energy Sectors

One of the most important functions in my research is tracking sector performance. It is deeply imbedded into my broader macro work, as I find that drilling down into each sector allows me to gauge the overall health of the financial markets. It also assists me in locating areas of the market that I want to focus my investment strategies on. For more on my approach and to read my other

10 Things Successful Traders Must Quantify

Subjective: Based on or influenced by personal feelings, tastes, or opinions. Proceeding from or taking place in a person’s mind rather than the external world. Subjective traders are intertwined with their trades. They generally enter trades out of greed and exit based on fear. They believe in their opinions more than the actual price action. They base trades off how they feel about a particular market at that time. A subjective

Could Crude Oil Prices Fall To $45 Per Barrel?

All eyes on Crude Oil prices. The downturn has been relentless and traders are now trying to figure out where the bottom will be. Normally, I only chart Crude Oil Futures on a daily basis, but with the recent collapse in futures prices I wanted to apply my Fibonacci method to some longer time frame charts to ascertain where the price of Crude Oil may be headed. If you follow