For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!
We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.
You can guess what it is if you must, but the real value comes from sharing what you would do right now.Buy,Sell, or Do Nothing?
In this Episode of Allstarcharts Weekly, Steve and I talk about the underperformance of European Stocks and the fact that it's their weighting in Financials that is, in part, dragging them lower. This has really become an interest rate story as Financials around the world are keeping other countries' markets from breaking out. The overwhelming exposure to Technology continues to keep the US winning relative to everyone else.
When the market seas get choppy, options premiums tend to inflate everywhere you look. Investors get scared and Speculators smell opportunity, both putting a bid under calls and puts as each is willing to pay up for protection and good fortune, respectively.
However, regardless of market direction, options premiums tend to mean revert. In other words, they tend not to stay high for very long before retreating back to some version of average. This creates an opportunity for nimble options traders to profit off of others' misguided notions.
This being our current backdrop, I've identified a nice instrument for fading the current volatility spike.
Since not a lot has changed at the TSX Composite or TSX 60 level, we want to take another look two months later to see what's developed under the surface and where there are opportunities to profit.
These are the registration details for the monthly conference call for Premium Members of All Star Charts. In this call we will discuss the global market environment and how to profit from it. As always, this will include Stocks, Interest Rates, Commodities and Currencies. The video of the call will be archived in the members section to re-watch any time and the PDF of the charts will be made available as well.
This month’s Conference Call will be held on Tuesday August 13th at 7PM ET. Here are the details for the call:
There's a lot going on in the world right now, and India specifically, but one positive to come out of all this mess is we may be seeing a more clear trend develop in USD/INR.
