Tag: Volatility

QE3 Complacency

There’s no denying that the market was overextended as a result of last week’s Fed decision. So far this week we’ve seen a small pullback in price while many of the short-term indicators have worked off their overbought readings. As long as price stays above the 5-day SMA and the net delta leaning bullish for

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What’s The 30-Day Volatility Telling Us?

I promised myself that I wasn’t going to post anything until my book is done…just another failed New Years resolution I guess. If you look at the chart below you can see that I’ve marked up a few points of interest. The short-term top (1343) for the ramp into 2011 came on February’s option expiration

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Option Expiry

Options expiration…you either love it or hate it. Many see the week as one of market manipulation while others see it as an opportunity to make some serious coin. I love option expiration week because one cycle is ending and another beginning. I’m closing out the prior cycle and stalking my positions for the next

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Mixed Bag

September is here and that means the kids are back in school, pennant races tighten up and football gets into full swing (except for Roethlisberger). September also brings the expectation that full market participation is back. Let’s hope so because the Summer was nice and boring (perfect for premium selling). Still fresh in the minds

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Uneasy Market Conditions

Wal-Mart ($WMT) put a little fear in the futures pre-market this morning ahead of the weekly jobless claims. Same store sales for Wal-Mart rose 1.7% for December while analysts were expecting more at 2.8%. Add to that a drop in their earnings forecast by $0.12 and you get a 7.5% drop on the day. It

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Monday, Monday…

A nice start to the week for the bulls as the major indices all locked in some decent gains with the broader market ($SPY) gaining nearly 5%. However, I would question the conviction as the volume today was really light. We are approaching a significant short-term resistance in the broader market so if it is

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