Pairing AMD vs. NVDA

A paired position is typically constructed by going long a specific security and simultaneously shorting a related issue.

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Pinning the Market

Yesterday we looked into how the willingness of investors to sell option premium short VIX related products might lead to ‘People Set to get Burned by Volatility’, as those positions could act as dry kindling ready to burst into a flame of selling should the market start selling off.

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Are People Set to Get Burned by Volatility?

It’s been widely reported stock market volatility has been on the decline for the past few years, sinking to historic lows in the weeks following the election.

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What’s Tesla Worth?

How can Tesla, which makes a fraction of the number of cars, losing money on each one, be worth more than than Ford and nearly equal to General Motors?

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Volatility: Implied, Applied & Otherwise

We just came through one the quietest, least volatile period in stock in history in which the S&P 500 Index went 109 days without a 1% or more decline. This caused the VIX to sink down to the 11 level and the 30-day historical volatility to a minuscule 5.2% last week.

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Aphorisms for Trading (a Bull)

We’re in a big bull market, one in which many expect to power even higher. So now is good time to review some of the basic tenets, rules, aphorisms and yes, clichés that help guide us not just through turbulent times but, more importantly can keep us humble through the bull.

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Dollar Ready to Rally

The market theme during the past few weeks has been the fade of the Trump trade.

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Did Retail Buy the High?

The S&P 500 Index’s record 109 day run without 1% decline was broken yesterday. It’s causing hand wringing and top calling bell ringing.

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Dip into This Chipmaker

Rotation among sectors has been the hallmark of the stock market and that has been especially true since the election.

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Whither Volatility

More surprising than the powerful rally stocks have enjoyed since Trump was elected has been the incredible contraction in volatility.

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Lessons From the Pits

I’ve been reading Trading in the Zone by Mark Douglas and came to part me I thought worth sharing.

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The Allure of Calling Tops

There are there is a history of doom and gloomers from Elaine M. Garzarelli who called the 1987 Black Monday, or Nouriel Roubini, who predicted the housing bubble, who have milked one correct call into a long and lucrative career.

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