Investing Research

Weekend Market Commentary: Diversification In Trading

Big Picture: One of the truths of markets is that we don’t get to choose the market environment. Investors want markets that go up all the time, traders usually want volatility, and premium sellers want implied volatility higher than realized volatility. Not all of those environments exist simultaneously and diversification helps us…

Crude Oil Chart Spotlight: Is It Really This Obvious?

As a technical trader, I layer into trades largely based off the price action. In other words, I monitor price support and resistance levels (from patterns to Fibs to MA’s to congestion) and monitor technical indicators at these levels. This also provides me with a means of measuring my risk…

Unusual Options Trading: Hedging, Sentiment Or Bullish Sign?

While the stock market saw big gains Tuesday, one options exchange reported a near-record level of relative put buying, as seen on the ISE equity call/put ratio. One of the recent themes that we’ve noted – and written about – has been the considerably depressed sentiment among various investor groups….

Stock Market Bulls Set Up Nicely… In The Near-Term

The U.S. stock market indices had a powerful session on Tuesday, followed by another good session on Wednesday. Volume could have been a little better on major U.S. indices but price spoke loud and clear… and this may benefit stock market bulls over the near-term. The Nasdaq 100 surged 2.1 percent on…

US Dollar Index: Time To Start Buying The Dips?

The latest US Dollar Index rally has been met with a lot of conjecture around what it means, etc.  It seems that most don’t believe in the rally and are expecting further weakness. I agree on the possibility for near-term weakness in the US Dollar, but that’s a matter of technical…

Return On Invested Capital (ROIC): Its Role In Market Valuations

Return: Measurement and Uses In Fiscal Year 2015, companies in the S&P 100 Index, ex-financials, posted Earnings Before Interest and Taxes (EBIT) of $678.9B. In isolation, this number conveys no information regarding the economic performance of the underlying companies. In order to assess economic performance, we need to calculate Return…