Investing Research

Options Trading Idea: Short Put On Consumer Stocks ETF (XLY)

The SPDR Consumer Discretionary ETF (XLY) dropped 0.9 percent last week, to $77.20, and looks poised to come under pressure medium-term. On a weekly chart, there have been back-to-back doji candles – as well as in four of the past five weeks. On a monthly chart, March through June produced additional dojis. Bulls and bears are battling it out on this consumer stocks ETF. Two weeks ago, the ETF broke

Unusual Options Activity: DAL, P, X, CVS, And More

It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (or who is making them), I believe that it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options

The Rotation Report: Global Markets Shake The Tree

Greece and China are driving the risk-off nature in global markets. Naturally, we want to try to take advantage of the opportunities the market gives us. Looking around at my favorite investment ideas, some are reaching buy areas like the 10 week moving average. Overall, though, it just seems like the market is starting to unwind and needs time after large breakdowns across various groups. Time will tell on that front.

Top Trading Links: Tis The Season For Market Volatility

It’s Volatility season. All of a sudden the Dow Jones Industrials are below the 200 day moving average. Instability and uncertainty is emerging across the globe. More and more charts are breaking down and this seems like early stage correction stuff. On the flip side, hopefully you’re having a wonderful long weekend! Happy Birthday America! Here’s this week’s Top Trading Links.   MARKET INSIGHTS @RyanDetrick shows us that for whatever

Gold Prices: Two Potential Paths Forward

Precious metals present a difficult trading scenario. While we believe they probably will reach for somewhat higher prices this summer, there is increasing risk that they will not. Traders may wish to wait for the picture to resolve before stepping back into this market. Today we’ll look at Gold prices – and specifically Gold futures. Of the two most likely paths for Gold futures, we still believe the most likely

US Corn Weekly Review: Planted Acreage Report Sparks Rally

US corn and soybean markets exploded higher on Tuesday following the release of the June 30th Acreage and Stocks reports. Let me start by distinguishing myself in the minority of those not fully supporting the price response in either market based on the figures the USDA released Tuesday mid-morning, which resulted in November soybeans closing up 57 ¼-cents per bushel at $10.37 ¼ and December corn closing up 29 ¼-cents

5 Stocks With Unusual Options Activity (ARMH, ZAYO, SWFT, CY, ACE)

Unusual Options Activity Report Here’s a quick look at 5 stocks showing unusual options activity with some color around the trading setups and recent news about the companies. ACE Limited (ACE)- 2,000 Nov $100 puts were sold for $3.30. ACE is acquiring insurance competitor, Chubb, for $28.3B in a cash and stock deal. Earnings are due out on July 21st. Cypress Semiconductor (CY)- 9,000+ Sep $12 calls were bought for

Chart Focus: Putting The German DAX Decline In Perspective

The German DAX Composite began its decline well before the Greek crisis found its way back to the forefront of our trading screens. The Euro also began to firm up well before the drama in Greece. That simply means that some of the fallout in Greece is likely priced into the markets. Now this doesn’t mean that there isn’t risk to fall further, it just means that capital often begins to reposition before “events”.

Crude Oil Inventories Pressuring Nabors Stock (NBR)

The Uptick In Crude Inventories Is Leading To A Breakdown In Nabors Stock (NBR) The $4.5B oil driller earned more than $1 in EPS last year and is now projected to lose $0.22 and $0.12 this year and in 2016, respectively. The collapse in oil and gas prices is expected to cut sales in half from 2014 to 2016 ($3.4B-$3.5B). These projections may actually be too optimistic if this week’s

What’s Wrong With Gold (GLD)?

Back in March, I issued a long research report on the state of the Gold bear market. In that report, I shared how a number of reasons why Gold was out of favor (and remain out of favor). But I also looked at sentiment, seasonality, and technicals to make a point that Gold had an opportunity to rally. Here’s an excerpt from that post: Headwinds included: US Dollar strength, slowing