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The reaction was if the employment numbers disappoint short YM & RTY and go long NQ. The same as yesterday on the ADP reports. YM went down 200 pts from 0630 to 0800 CST. NQ went up 45 pts so it wasn't that great. Up/down 30bps either way. RTY went down 1.1% from 0630 to 1040. The trick is to...

I think the RSI is most useful as a divergence tool relative to price especially near extremes. Higher price with lower RSI especially RSI>75 is generally a good sell and vice versa. I saw this pattern with the vaccine stocks a few weeks ago and even AMD after its last earnings when it kept...

Ineresting chart. I went back to look at the gains in the 2009-2015. From March 2009 up to the Greek debt crisis the SPY went up ~105% and then fell 22% and then from October 2011 up to the August 2015 Renminbi devaluation went up another 104%. So far the March 2020 up to today SPY only went up...

Yeah the QQQ chart can only be categorized as parabolic. Amazingly the PE of the QQQ is still only 35. Imagine if it went to 100 like in 1999. That means these NASDAQ companies are making more and more of the earnings pie which doesn't bode well for the economy. There's still 4-5 million jobs...

I agree with S2007S & Rickshaw on the absurdity but the problem is it is in-congruent with the direction of the momentum of the market. Its like being short the QQQQ in summer of 1998. You would have been wiped out in a matter of months. Whenever this market gets close to the 50-day SMA I start...

Amazingly at $59 the Sept 30 puts were selling at $30 and at the close of $26.33 it is only at ~ $38. Down 55% and the option is up 27%. That is a leverage ration of 0.5 -- what a terrible trade.

Is there an ET thread beyond 4-5 pages that doesn't turn into a pissing contest?

I still hold the Sept $50 calls but it has been very negative since the day it hit $51.80. I made a lot from the run up from $41 to $51. Seems like the official notice from the FDA was a sell the news event. The same happened to Moderna & BioNTech. Of course the XLV has been going down the last...

I think RSI is only good for sleepy stocks like PEP, CSCO, etc. as an indicator in swing trading. Even then if there is a breakout from the previous range it won't be useful as an exit (like the recent breakout for CSCO). Works great for utilities & drug companies that just go up and down in a...

Looks like a bear market rally today. Seems unlikely to hold today's gains but who knows. The 7/23/21 gap down is the 50-day SMA as well so that is probably the buy point ($57.46).

Cathie Wood's investing style didn't change since the inception of her funds. Its the market that changed. Her strategy makes sense long term. Shes running a post-IPO venture fund in a sense. The pandemic accelerated almost every bet she made so she got 10 years of growth in 12 months -- from...

Yeah that makes sense about them screwing over their contemporaries. That was the main point of the last 30-40 minutes of the film. The guy who played the CEO was very good. So that means Goldman had underlings that screwed up the VaR model. Thats pretty surprising.

I wasn't sure exactly which company "Margin Call" was about. Seemed like a mix of companies since it was fictionalized. I thought the plot surrounded around the screw up over Value-at-Risk calculations so it was about Lehman. I don't usually watch Hollywood versions of the truth since it is...

The small cap market has been a real disaster since about 2014-5. It seems to be last one to gain and the first to collapse. From the peak in 2015 to the peak this year it has gone up 82% (129 --> 235) which is an annualized return of 10.5%. The SPY is at 13.2% for the same time period. IWM is...

The trade is to short KWEB to zero since endgame is the CCP wants all their companies to list in HK. Go long the HKSE as well.

Seems like a lot of the stocks that are going down have had so much growth and that looking at longer time horizons makes sense. Zoom, Twilio, etc. have had huge growth already so I assume the 2nd derivative of growth will be negative for a long time. Up until a few weeks ago the vaccine stocks...

The sad truth of an oligopoly of CRAs is that people are too lazy to do their own research so they continue to use S&P, Moody's, etc as can be seen by their stock prices. They should have been hit with RICO statutes. These companies were far worse than anything Milken or Drexel, Burnham, Lambert...

The most shocking thing to me is still how the Credit Ratings Agency skirted the law by claiming their bond ratings were only "opinions." Worthless CDOs rated as AAA which were on the verge of defaults. Simply amazing how stupid the Bush/Obama administrations were. I remember the last AG under...

There seems to be different types of "sell offs" in this market. One is an across the board sell off like yesterday after the Fed minutes which are rare and then there is the sector rotation sell offs which seems to happen quite frequently recently like after the jobs report last week. It all...

I was surprised to see it rise today since Xi said he wants to redistribute their wealth to the poor masses. I think the main problem with the companies inside the KWEB is that most of the trading is done by westerners using some sort of ADR entity that is located in Caribbean tax haven. Nobody...