Stocks & Equities

Ride the Market Rally With Options

Posted by Chad Shoop - The Edelson Institue

on Tuesday, 21 November 2017 05:10

Editor’s note: You could jump in and buy stocks as they trade near all-time highs. Or you can “lease” stocks for a lot cheaper with buying options. The low volatility in the markets helps make a compelling case.

The one thing I was certain would happen over the past 12 months turned out to be the exact opposite.

Last November, the newly elected president was committed to stirring up the typical D.C. drama.

President-elect Donald Trump had a mission to “drain the swamp.”

He promised to be a president who went against the grain of how things were done.

I, along with many others, expected the one thing the markets would experience in his presidency would be wild market swings, also measured as volatility in the stock market.

After one year, we saw the exact opposite.

Volatility, as measured by the CBOE S&P 500 Volatility Index (VIX), is at all-time lows.

The stock market has experienced one of the longest runs in history without a 5% correction.

In short, there is a remarkably low amount of volatility in the markets.

And I hope you are taking advantage of that by riding the market rally with options. Let me explain …

Use Volatility to Your Advantage

Options aren’t something most people associate volatility with, but it is the first thing that comes to mind for me.

See, options are a leveraged bet on a stock moving in a certain direction. And many people use options to do just that — place bets.

But you can also strategize with options to use volatility to your advantage.

Let’s start by looking at a chart of the VIX.

112017 1739 RidetheMark1



Stocks & Equities

Two Scenarios, One Strategy

Posted by Gary Savage - Smartmoneytracker.com

on Monday, 20 November 2017 06:13

Whether the stock market is entering a multi-month parabolic phase or beginning a new multi-year secular bull market the trading strategy is the same. This video details that strategy. 

....also: Really, Are We That Stupid?

Screen Shot 2017-11-20 at 6.24.04 AM


Wealth Building Strategies

Reefer Madness Could Make You Rich

Posted by Sean Broderick - The Edelson Institute

on Monday, 20 November 2017 06:08

Cannabis stocks have zig-zagged for months. It’s been a regular roller coaster! Now, the next breakout is here. Just how high could this next round of reefer madness take us?

Dude … pretty darned high!

Here’s a chart of the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ) (OTC Grey: HMLSF). It’s a basket of 37 leading cannabis-related stocks operating in North America.


You can see that HMMJ is on a wild ride. After soaring into August, it slumped all that month. It didn’t make new highs until September. Then it was off to the races until October, until it went into consolidation. Again!

But now … well. Now, it’s time to shatter that ceiling.

The most recent thing to light a firecracker under cannabis stocks is the news that broke on Monday.

Alcohol goliath Constellation Brands is guzzling nearly 10% of Canada’s premier marijuana company, Canopy Growth. It only cost Constellation $190.9 million. Such a deal!



Timing & trends

Bitcoin Invalidates Breakdown

Posted by Mike McCara - Sunshine Profits

on Monday, 20 November 2017 06:04

.....related: All the Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge

Square, a payment company, is playing around with Bitcoin. In an article on CNBC, we read:

Jack Dorsey's company is testing support for bitcoin through its Cash payments app.

"We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers," a Square spokesperson said via email to CNBC. "We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here."

The test does not allow individuals or businesses to send or accept bitcoin, Square said.

Shares of Square spiked more than 5 percent Wednesday to a record high as one Wall Street firm was quick to recommend the stock on this potential development. The stock closed up 2.3 percent at $40.66 a share.

We are always skeptical when we hear something like: “Stock X has rallied because Y.” It is very hard to pinpoint specific reasons behind a given move. We’re not saying that the Bitcoin news was not the reason why Square went up. We’d simply rather say that it is a possibility rather than certainty as it might be gleaned from many media stories. The same goes for the “Bitcoin goes up because of the Square move” story. Wait, does Bitcoin affect Square or does Square affect Bitcoin? Which one is it? Or is it both? You can immediately appreciate the subtlety of any reasonable answer. While the Square story reads well and for precisely this reason is featured heavily in the media, the recent price move might have implications for the Bitcoin market beyond the possible temporary impact of the news.

For now, let’s focus on the charts.




Energy & Commodities

Clive Maund: Oil Market Update

Posted by Clive Maund Maund

on Monday, 20 November 2017 05:58

It’s a good time to take an updated look at oil, because the paradoxes we observed regarding gold and silver, which we looked at in yesterday’s new Gold and Silver Market updates are much more extreme in the case of oil.On the latest 5-year chart for Light Crude we see that oil has in recent weeks succeeding in breaking out of its giant Head-and-Shoulders base pattern at last. We also see that volume has expanded greatly over the past 2 years which is viewed as a sign of a completing bottom. Recent strong upside volume has driven both volume indicators to new highs, despite the price still being way below its 2013 highs – this is viewed as a very bullish sign, and suggests that oil will advance at least to the $80 area.


.....continue analysis HERE


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