When the market’s volatile, leveraged ETFs can let you control a significant part of the market without a ton of capital. Here’s the problem many traders face when they do this: They treat them as investment vehicles instead of a fast way to trade. Leveraged ETFs will use the daily returns of the underlying market, […]
SPY Before last week, the market was in a high-volatility chop-fest and held both sides of the range very well. Once we took out 405, we saw a fast move to the 397 level I focused on for a while. I thought it would be a decent level for buyers to come in, but when […]
While the markets are well off their highs, it’s been a bloodbath under the surface. I’ll give you an example from yesterday — UPST after earnings: Six months ago, this stock was trading above $380 per share. It had earnings yesterday… And now it’s down to $33.74. It’s simple: the market has been working off […]
The markets are a continued mess, thanks to a hawkish Fed and other sovereign entities struggling to keep up. We saw something extraordinary last week. Fed minutes come out on Wednesday, leading to a massive move off the lows… Only for that move to completely round-trip the next day. That can happen sometimes. However, the […]
Markets are seeing a small bounce after looking like absolute death last week: And the S&P 500 found support right where we expected it to on our Market Primer. The market is completely focused on the results of today’s Fed meeting. A 50 bps hike is all but guaranteed… and then another one in June… […]
SPY Boy, it got ugly out there. April 22’s aggressive selloff created a ton of trapped inventory — they had to make the decision to either liquidate into the next gap up or puke into the close. Some chose the first, but many chose the second… especially into Friday. Some options-related dynamics were at play […]
I have an indicator signaling a major potential bottom is setting up in tech stocks. This is not a popular thing to say right now. Many high-growth names have been absolutely slammed, and some will take months or years to return to something resembling a bull market. It’s a contrarian take, but I’d like to […]
I heard a great line over the weekend: “Your bias in this market depends on your cash level.“ Isn’t it funny how it always plays out like that? If you’re 110% loaded up for an upside move, you can find all sorts of reasons to get long into the bloodbath. If you have a ton […]
