The put ratio spread is generally considered a neutral options trading strategy, although it has the ability to make a profit in up, down and sideways markets. For more, check out my ultimate guide to trading Put Ratio Spreads. Yes, it can make money no matter which way the market…
Buying the dip in any stock or index can be a difficult task for an active investor. Not only do you have to worry about trade location, but also key factors such as initial position size and risk management parameters. There is a lot to take in and easily second…
What is Turnaround Tuesday? Is it a Wall Street cliché, media company selling headline, or verifiable trading edge? Maybe all of the above, depending on its usage. But it has also been a simple trading edge over at least the past 15 plus years or so. Below you will see…
Can you trust a backtest? Below is a simple strategy that uses intermarket signals from the Japanese Yen to trade US 30 Year Bond Futures. It only has 2 rules for entry. The strategy produces fairly stable in-sample returns especially for being so simple. The in sample period is from…
As many of you know, I use DeMark indicators in my analysis. Sometimes tweets and posts come off a bit terse, as it is difficult to explain in depth each time I post an idea. So today, I want to dedicate some time to explaining DeMark analysis via the following…
The market is “overbought” or “oversold” are common phrases you will hear across the finance space. However, it is actually extremely rare for these conditions to be true. Today, we’ll attempt to show how trading rules can provide a better picture of the market while enhancing trading performance. First, let’s…
This post was written with Derek Benedet of Richardson GMP. A common saying for investors is that volume tends to lead price. By volume, we mean the number of shares traded from one owner to another in a single day. High volume days are evidence that an increased number of…
Much of trading can be broken down as conditional probabilities. And there’s a distinct benefit in understanding what is likely to happen if some condition (or set of conditions) is true or not. For example, is tomorrow more or less likely to close higher if we are above the 200 day moving average…
Stock Market: Markets Don’t Peak Quietly Over the past few weeks in my newsletter, “On The Mark,” I discussed some things that generally occur at major stock market tops. Here is a brief synopsis. Major stock market tops are generally accompanied by lengthy divergences with respect to market internals and longer-term…
Measuring price moves is the name of the game. However, measuring price moves given recent context can add additional benefits to your trading performance. At times, the market can get very quiet which can make a 1% price drop feel like a 10% price drop (think summer trading). At other…