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.
Greg Harmon is one of the OGs of the Financial Blogosphere. He has been consistently contributing to the community for over a decade. For you new comers, this is how it's done. Greg is the founder of Dragonfly Capital, where he is the portfolio manager and I encourage you to follow him on Twitter @harmongreg. He paid his dues early in his career traveling around the world and holding senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity at JP Morgan, State Street and BNP Paribas. It was not until after all of this experience that he...
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:
Tuesday's Mystery Chart received some interesting responses, with some of you stating that the bottom is in, while others said it's still too early to tell.
So let's get into what that chart is and why it's relevant.
Tuesday I posted a Mystery Chart that got a lot of replies.
Most said you'd be buyers at current levels or on a pullback, but a number of you were skeptical of the recent move and would be avoiding or fading it.
The feedback I got was interesting, so let's get right into the actual chart.
This week's Mystery Chart was an inverted daily line chart of the Metals & Mining ETF relative to the S&P 500. Below is the corrected chart.
The Research and/or Trading business can be a very lonely endeavor for many, so I wanted to use this post to outline the role that collaboration plays in my process and why I feel it's so important.
Some people actually think this world is just filled with rainbows and butterflies and stocks are always supposed to go up. I never understood that ignorance. Sometimes stocks go up, sometimes they go down and sometimes they go sideways for a while. It will take you less than 5 minutes of market history research to understand this very simple fact.
Of those 3, I would argue we are in the 'sideways for a while' category in U.S. Stocks, particularly the S&P500.