In today’s Daily Digest, we’ll review:
- No new positions today.
- Another Adjustment to SMH position.
- No exits since the last report.
- Current status of open campaigns.
Let’s dig in! [Read more…]
Expert technical analysis of financial markets by JC Parets
In today’s Daily Digest, we’ll review:
Let’s dig in! [Read more…]
In today’s Daily Digest, we’ll review:
Let’s dig in! [Read more…]
Today’s trade is in a name that has the potential to really rip. Of course, the nature of this type of trade is that it has a lower probability of success.
But if we get it right, our potential gains will likely be exponentially higher than any heat we’re likely to take in this trade if we’re early or wrong.
So let’s get right to it. [Read more…]
In today’s Daily Digest, we’ll review:
Let’s dig in! [Read more…]
I’m reading Annie Duke’s latest book “Quit: The Power of Knowing When to Walk Away.” Though I’m only about halfway through it I can already confidently recommend this book to traders.
The book isn’t addressed to traders, though it frequently references our profession in its anecdotes and many of the stories are very relatable.
And it certainly has me thinking about better ways to decide to quit a trade, quit a strategy, or quit a product.
I frequently go down rabbit holes, experimenting with models to extract consistent, repeatable, acceptably risk-adjusted returns via index options. I’ve written about my near-constant obsession with this project numerous times. It continues.
As a trader, it’s always good to be working on some kind of “side hustle.” In our cases, this is more likely to look like building a new strategy, fine-tuning a scanning method, or constructing a money management scheme that can propel us into becoming more profitable traders.
The nature of experimenting in the markets is to lose money in the service of learning what definitely doesn’t work, so that we can continue stripping away until we get to the very essence of what does work.
But when do we quit? [Read more…]
In today’s Daily Digest, we’ll review:
Let’s dig in! [Read more…]
This morning, my Head Technical Analyst Steve Strazza joined me on The Flow Show to put our heads together on a new trade:
Strazza loves the Energy sector here, and of all the charts he likes, I liked this one in Valero Energy $VLO the best:
Best of all, options premiums are near the lowest levels of the year for $VLO:
This isn’t entirely surprising. The stock has been consolidating just below all-time highs since early 2022. And the consolidation has been continually tightening.
Sideways markets may not stop you out of your positions, but they are likely to wear you out. And when traders are exiting their positions giving up on the thought of any directional movement, options premiums tend to decline because few participants feel the need to protect their positions or aggressively bet on accelerating price change.
This creates an opportunity for those of us who can position ahead of the big perspective change that comes with new all-time highs.
Here’s the Play: [Read more…]
In today’s Daily Digest, we’ll review:
Let’s dig in! [Read more…]