Trade selection using volatility as the primary criteria. Different trades for different volatility opportunities.
Volatility Trading Digest – Forecast Record Review
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Volatility Trading Digest – New Year Market Forecast
When comparing selected forecasts made this time last year to actual results it seems like they must have been looking at completely different sets of data.
Volatility Trading Digest – Changing Picture
As we prepare to close out the year with the S&P 500 Index up 29% signs are starting to appear that the world economy may be on the verge of improving thus confirming the advance has been more than just price to earnings multiple expansion.
Volatility Trading Digest – Support at 1600 Held
In this Digest, we consider what to do now right after reviewing our market indicators.
Volatility Trading Digest – Breakout Test Underway
Last Wednesday, after a long run from the May 3 breakout the S&P 500 Index began the inevitable overdue test of support rather dramatically, as the volume increased, the trading range expanded and the day ended in a Key Reversal.
Volatility Trading Digest – Sell in May and Go Away?
Well it?s that time of the year to once again ponder the old market adage and add our unique options perspective to the many comments and observations being offered by other analysts midway through this important month.
Volatility Trading Digest – 40 Years Later
On its 40th anniversary last Friday the listed options industry and the Options Clearing Corporation marked the occasion at the Options Industry Conference in Las Vegas by highlighting the first day volume on April 26, 1973 totaled 911 contracts. Compare that to last Friday’s volume of 15,181,128 contacts, forty years later.
Volatility Trading Digest – VIX Futures Premium Added
Like the Aesop’s fable, those who have been calling for a correction these last few weeks have lost credibility as the market continued marching higher although most everybody knows a correction will come eventually.
Volatility Trading Digest – VIX Futures Premium Added
We begin by updating our indicators while checking on the progress of the equity uptrend.
Volatility Trading Digest – Mighty Dollar
Last weeks’ media chatter about sequestration and the anticipated effects of reduced spending seemed to be overlooking the dollar as it increased against the currencies that make up the US Dollar Index, especially Friday, the first day of implementation. If exchange rates move primarily in response to news that alters expectations about the future economic environment, as theory proposes, then less government spending is good for the economy.
Volatility Trading Digest – When the Tide Turns
Like a broken clock that is right twice a day, those who have been calling this market overextended and due for a correction will eventually be right. The tide will turn the question is when.
Volatility Trading Digest – Low Volume Profit Taking
For those of us attempting to understand market movements we propose yearend profit taking, before a likely capital gains tax rate increase next year, along with “fiscal cliff” uncertainty producing a wait and see attitude, are the two best explanations for the recent low volume up drift among others floating around.