“As the S&P 500 goes in January, so goes the year.” If you’re a Stock Trader’s Almanac reader, you’ll be familiar with this adage. According to the Almanac, since 1950, this seasonal indicator has registered 12 major errors. That’s an 83.3% accuracy ratio. Given that 2023 is a pre-election year, […]
January’s Performance: A Good Start for 2023?
“As the S&P 500 goes in January, so goes the year.” If you’re a Stock Trader’s Almanac reader, you’ll be familiar with this adage. According to the Almanac, since 1950, this seasonal indicator has registered 12 major errors. That’s an 83.3% accuracy ratio. Given that 2023 is a pre-election year, […]
What Are the Equity Market’s Positive Signs?
On Monday, the Daily covered some of the warning signs, particularly in the Regional Banks and Transportation sectors. We ended the Daily by writing this: “Transportation and Regional Banks make up nearly 1/3 of the Economic Modern Family.” On their weakness: “Of course, the week is young, so we have time […]
What Are the Equity Market’s Positive Signs?
On Monday, the Daily covered some of the warning signs, particularly in the Regional Banks and Transportation sectors. We ended the Daily by writing this: “Transportation and Regional Banks make up nearly 1/3 of the Economic Modern Family.” On their weakness: “Of course, the week is young, so we have time […]
Sector Spotlight: Sector Rotation Out of Defense
In this episode of StockCharts TV’s Sector Spotlight, I address the current state of asset class rotation, then move on to sector rotation. I divide the market in three groups — Offensive, Defensive and Sensitive — and find an interesting alignment that should be taken seriously as an early warning for […]
Sector Spotlight: Sector Rotation Out of Defense
In this episode of StockCharts TV’s Sector Spotlight, I address the current state of asset class rotation, then move on to sector rotation. I divide the market in three groups — Offensive, Defensive and Sensitive — and find an interesting alignment that should be taken seriously as an early warning for […]
Iron Condor Vs. Short Strangle
It’s a core tenant of how options are priced, and it’s often the trader with the most accurate volatility forecast who wins in the long term. Whether you like it or not, you’re taking an inherent view on volatility anytime you buy or sell an option. By purchasing an option, […]