For those new to the exercise, we take a chart of interest and eliminate the x and y-axes and and all labels eliminated to minimize bias. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted or a custom index.
The point here is to not guess what it is, but instead to think about what you would do right now.Buy,Sell, or Do Nothing?
The cool thing about working with smart people is being able to learn from them. Having Sean McLaughlin on our team has made everyone better, not just our clients but us as well. In today's video, we tackle the question of when it makes more sense to finance an options position by selling a different contract to collect the income vs simply just buying calls or puts. As usual, Sean does a nice job of explaining this in a way that anyone could understand.
Last week I had the pleasure of being on Real Vision TV where I recorded two segments, one on Bonds and Equities pairs trade (short EWJ/SPY).
The video to the Equities trade is here, but since I'm not sure if/when the free video about Bonds will be out I wanted to go through that trade for you all on the blog. And if the video does come out, I'll be sure to share it.
You've probably noticed a few recent blog posts and twitter comments from the All Star Charts team singing the praises of "cash". There's nothing wrong with cash as a position if there aren't any compelling ideas to get you excited about. In fact, its often the best move.
However, we options players can still structure trades that will profit in sideways markets. But a big challenge currently is that we prefer higher options prices driven by relatively high volatility to sell into -- and its hard to find that anywhere right now. Across the board, options prices are getting extremely compressed everywhere. What to do?
How about a strategy that positions us to benefit from sideways action while also getting a goose from any reversion to the mean (er, higher) volatility?
Today there is no shortage of information: Social Media, Blogs, Newspapers, Television, Water-Cooler Gossip, etc., but we still have the same amount of time in a day. We all have to make a decision what we're going to pay attention to and what we're not.
Here's the video from a live interview I did on ET NOW, India's leading business news channel. It's amazing that I could not live further away than I currently do, yet we can still do this sort of thing. Their morning TV is my evening, but it works.
In this interview we discuss the ongoing rangebound market in US Stocks and then we shift gears to India's stock market. We talk about the rotation into small & mid-caps, key levels for both the NIFTY50 and Bank NIFTY as well as the relative strength we're seeing in the bank stocks, particularly ICICI and AXIS Bank.
This is our monthly conference call for All Star Charts India Premium Members where we discuss ongoing themes throughout the India Share Market. We take a look at all of the NSE Indexes and Sectors as well as some of our own custom indexes. At Allstarcharts we have become known around the world for the top/down approach to stocks. After we analyze each of the indexes and sectors and have identified where the strength and weakness lies, then we break it down to individual stock opportunities. By having momentum, relative strength and market trend in our favor, the probabilities of success increase dramatically. 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.
I'll do my best to lay out my weight of the evidence conclusions and walk you step by step with how I got there! This month's Conference Call will be held on Monday March 18th at 7PM IST. Here are the Registration Details:
