Price discovery used to be a process of buyers and sellers determining fair value for an asset. Now, it’s only about supply of money vs supply of stock…even bankrupt stock.
But 20% unemployment and Nasdaq is at all-time highs…who would have thought?!
One of the major psychological benefits of #trading options is you can always structure a trade where your worst case scenario is defined, limited and known up-front. This makes getting comfortable with the uncomfortable a lot easier 😉
Like many people I speak with, I’m “mentally bearish”. The stock market is rallying, the Nasdaq nearing is new highs, while retails sales and industrial production are plummeting and we have 36 million unemployed. None if this “gels” with me. But I’m a technical trader and I don’t want to fight the tape. So what […]
The stock market is never wrong…or right. those terms apply only to our expectations
Nothing, nothing, NOTHING changes sentiment like price. How do we know this? Consider all the of the conversations currently around the possibility that the Fed and Treasury, in the space of 6 weeks, have KO’d the recession. V-shaped recovery baby. I GUARANTEE you we would not be having these conversations if the S&P 500 was […]
Amid huge volatility, records have been broken in the stock market over the past couple of weeks. Is this a buying opportunity or is there more pain ahead?
“Is the selling over?” This is a question nobody can answer with any certainty. But in financial markets we are only ever dealing with probabilities, never certainties. And from my viewpoint, the probabilities strongly favour at least a short-term bounce from here.