Stocks & Bonds

How To Trade A Poor Man’s Covered Call

Most traders worth their salt have used, or at least heard of covered calls. Covered calls are really easy to implement and are a proven long-term strategy. However, for some, the costs of implementing this strategy can be prohibitive. For a covered call trade, the investor needs to purchase 100…

Stock Market Futures Trading Outlook: A Big Break Is Coming

Stock Market Futures Outlook for February 23, 2018 Diminishing directional moves continue as the current price range compresses on the S&P 500.  Traders should expect a strong break soon, but which way seems obscured. Fades are likely but not without some kind of failed bounce attempts. We sit above important support at…

Pandora (P) Earnings Reversal: Stock Pops Then Drops Sharply

Shares of Pandora Internet Radio (P) initially popped 11% to $5.42 yesterday when the company reported an increase in subscription revenue of 63% as well as an increase in subscribers of 25%. On the surface, this appeared to be good news for the stock… However, by the time the market…

Debt Hangover: Here’s Why Deficits Do Matter

The Federal Reserve (Fed) has increased the Fed Funds rate by 125 basis points or 1.25% since 2015, which had little effect on bonds until recently. Of late, however, yields on longer-maturity bonds have begun to rise, contributing to anxiety in the equity markets. The current narrative from Wall Street…

S&P 500 Futures Update & Trading Outlook: Eyes On 2705

Broad Stock Market Outlook for February 22, 2018 Price resistance stood tall yesterday and rejected the bulls advance. This lead to a very swift move to lower price support from last Thursday.  As I mentioned yesterday, big spikes in either direction for stock market futures will likely be reversed but these…

Devon Energy (DVN) Misses Earnings, Sinks Past Cycle Low

Devon Energy (DVN) dropped by as much as 11% on Wednesday morning after missing Wall Street’s estimates for earnings. The company reported earnings per share of $0.38 and total revenue of $3.98 billion, missing expectations for earnings of $0.60 and beating revenue expectations of $3.52 billion. As can be seen…

Riding The Downward Trend In US Treasuries

Our Elliott wave forecast for treasury bonds continues to hold up well. In June 2017 we described the minor rally during the first part of that year as probably a correction within a new downward trend. Here we chart the two most prominent Elliott wave scenarios for the iShares 20+…

Dow Industrials “Megaphone” Pattern Leads To Major Test!

Back in November, I shared a long-term historical chart of the Dow Jones Industrial Average and pointed out a megaphone pattern breakout that looked bullish for stocks. After that post, the Dow Industrials rose over 3000 points into January before embarking on a long overdue correction. So what now?  Let’s…

Walmart Stock (WMT) Declines Toward $90 Price Target

Walmart’s online sales growth appears to be slipping and that has been a catalyst in sending the stock price lower. But as I often say, gaps always get closed. And in this case, there’s one open just a bit further below. Let’s look at the chart below and discuss the…

S&P 500 Futures Trading Update: Choppy Action

Stock Market Outlook for February 21, 2018 Hallmarks of mixed momentum are showing up in sideways price action that as traders deal with crosscurrents and divergent ideas about direction. Price resistance on the S&P 500 was challenged but not overcome. The same holds true for key support. Big spikes in either…