Education

Market Masters: Elliott Wave Insights on US Equities

By Walter Murphy    Last week’s action is in line with our expectations. The three prior intermediate corrections from (and including) the June 2012 low through the May-June 2013 decline have ranged between 7.5% and 10.9%.  A similar performance this time implies a potential further weakness to the 1582-1524 range….

Market Masters: Using Relative Strength During Market Corrections

During a market correction I focus almost exclusively on finding and studying the price action of individual stocks that are demonstrating relative strength versus the general market.  The primary technical indicators I use are the MarketSmith Relative Strength Line (RS Line) and MarketSmith Relative Price Strength Rating (RS Rating) which…

Using a VIX Call Spread as a Downside Hedge

I would like to discuss today another way to hedge your equity portfolio against a major move lower, albeit perhaps indirectly. And we can do this by using options on the CBOE Options Volatility Index (VIX), namely a vertical VIX call spread. The VIX is an index which provides a…

Market Masters: A Top Down Approach to ETF Trading

I’m honored to be invited by Andy to join the ranks of Market Masters, and know full well the high caliber of other contributors to this segment. To get things rolling, I decided to focus on one of the greatest challenges all strategists and traders face: stock picking. Or in…

Options Education: The Butterfly Options Strategy

One of the more difficult aspects of writing a column such as this one is that I have little or no idea of the relative sophistication of my readers. Do most of them have an in depth knowledge of options? Or, is most knowledge rudimentary puts and calls? I hate…

Question Everything: Challenging Your Market Opinions

Given the delicate context the broad market up-trend finds itself in, this morning marked one of those rare occasions in which I check the basket of instruments I analyze against commonly-used moving averages to see how things are faring.  Looking across baskets of equity indices and ETFs, bonds, currencies and…

Market Masters: Investing in Trends As Easy As 1-2-3

Even Warren Buffet Needs Trends To make significant gains over longer periods of time (weeks, months, years), any investment position must be in an uptrend.  The key word is must. If Warren Buffet purchases company XYZ because he feels it is undervalued, company XYZ will eventually have to resume an…