Expert technical analysis of financial markets by JC Parets
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
We’ve written a lot of content on the blog about the current market environment over the last few weeks, but we want to use this post to quickly point to two broad-based breadth measures we’re watching to identify when a tradeable bottom might be in.
by Tom Bruni
Since we launched Allstarcharts India in January, we’ve seen great traction and have gotten a lot of feedback and suggestions from our readers and subscribers. In fact, many of the ideas we’ve added to the platform and are currently working on have started from conversations with you all.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
A major part of the thesis for higher prices in Canada was the breakout in Financials (and REITS) which represent roughly a third of the TSX Composite, however, over the last few weeks we’ve seen failed breakouts in many of these leading stocks.
In this post I’ll highlight some charts identified during my Chartbook update that describe the type of environment we’re in for Canadian stocks and why a more neutral stance appears appropriate. Given the correlation between equity markets around the world, I’d also encourage you to read some of our other free pieces about the US here, here, here, and here.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
After last week’s move to the downside I figured there would be a lot of changes to the IBD 50, and there were, so I want to highlight the characteristics of some names that continue to hold up well.
by Tom Bruni
From the desk of Tom Bruni @BruniCharting
For most of the year we’ve been talking about downside in Bonds and the potential effects that would have on Equities and Commodities. With rates extending their gains to start the fourth quarter, we’re going to use this post to look at the structural trends in Commodities and determine which are best positioned to benefit if we start to see money rotate.
Gotta love it when the market hands us a little two-way action to remind everyone that stocks go both up and down. And more importantly, I get real excited when I start to see options premiums rise thanks to irrationally freaking out market participants. Is the top in? I don’t know and neither do you (my gut says no), but there are plenty of people starting to buy protection in the options market to protect their positions. We’ll happily take the other side of those insurance bets. [Read more…]
From time to time I like to review some of my Best Practices for my own benefit, but also for the benefit of readers of this blog, and for subscribers to All Star Options. So let’s get right to it…
This past Friday marked an important monthly date in the regular cycle of options expirations. Friday marked the line in the sand where we crossed under 21 days until October expiration.
Why is 21 days until expiration important?
In short: because of theta and gamma.
For long premium positions, theta decay starts to become a major drag, and increasingly so with each passing day. For short premium positions, gamma has the potential to produce wild swings in your position equity. Neither of these scenarios are very appealing for obvious reasons.
Lets breakdown the risks and actions to take for a variety of common strategies. [Read more…]
We were bullish on Microsoft all summer, and with $MSFT printing another new all-time high this week, our stance hasn’t diminished in the least. The only thing that’s changed is we’ve raised our price target. That tends to happen in bull markets.
In our October conference call for subscribers, we teased a bullish trade idea in $MSFT. And upon further reflection, I think I’ve come up with an even better probability play with an opportunity for better risk adjusted returns. [Read more…]
