When I was in school back in the 1970’s BC (before computers) I had something called a slide rule. I never really understood how the thing worked totally but I was my responsibility to figure it out or do all math by hand. Finally when calculators came out I either…
Two weeks ago, August 8 to be precise, I woke up to a market in turmoil. The September S&P future was trading below 1890. The S&P 500 had sold off from all-time highs. Analysts were predicting further weakness in the market. As I waited for the US markets to open,…
It’s the most wonderful time of the year, ding dong ding dong. You know the classic Christmas tune. Well, my sense is parents are beginning to sing it about now with the end of the summer and back to school just about here. Most of us love summer and spending…
European concerns – economic and political – will continue to dominate our markets. The euro zone GDP last quarter showed flat line growth. Germany, the euro zone’s largest economy, contracted 0.2% in the second quarter. The Euro is at a nine month low versus the US dollar. Euro zone industrial…
Time decay. In options we call it theta. Can work for you if you are short options but against you if your long. I realized last night playing baseball with one of my boys that since I am long a 50+ year old right elbow, theta works against it. I…
Volatility came back last. A return of volatility – statistical and implied – is an August stock market phenomenon. Investors and traders vacation days peak in August. The reduction of numbers of players in the market leads to amplification of any negative news or fears. Friday’s market rally brought the…
Wow summer feels almost over. My son Matt starts football practice next week. Usually by this time I am ready for the cooler and drier fall. This year however I am still enjoying summer. Maybe the extreme cold of last winter is still with me or that the front end…
Technical indicators turned bearish last. The broke SPX broke 1950 – a very significant support level. This move left the SPX chart decidedly bearish. Equity put/call ratios have been bearish for weeks and will most likely to reflect this sentiment. Market breadth indicators are also bearish. WARNING: An oversold indicator…
My oldest son starts to drive next month. While I have mixed emotions about him getting older, I am looking forward to him driving. Of course I want him to be safe and I have the usual parental concerns on that front. And we have addressed that. I have…
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