Gotta love ZERO RISK in the SP500 = $$$

[eurusdzn]

Is this correct?

Foreign investors sell theirs and others currrencies to purchase USD to ultimately purchase US equities. This has been happeening for some time now. Years maybe.
Since last summer it has been MORE profitable to sell US equities and remain long in the denominated currency USD(remember the initial open Forex).
Simply the spread of the equity to initially sold currency may be decreasing(maybe not as
many currencies falling) yet the spread of USD to sold currency is performimg better.

So,..... Sell stocks for US dollars.
This has also been working for us little US retail customers if we are willing to sell stock and
buy the dollar rather than remaining in cash, money market.
Some would say, yeah go long the dollar Sherlock, but it may help to explain
further stock selloff.

And then there is interest rates.

This is an edit and i have to confirm.
So with the negative rates of some currencies, when you sell that currency to purchase USD you receive daily interest for both currencies rather than paying on the sold curremcy? Good deal.

 

[noddyboy]

Investors use 2000 as their benchmark. This perception is not correct. Based on that theory any valuation below 2000 is justified. If that were true, investing would be easy because we would know what could be the trigger point.

Still, for small caps, I don't remember them having negative earnings in 2000.

 

[noddyboy]

Looks like SPY is BTFD to close that gap...

 

[S2007S]

LONG SOXS on the intel warning at $11.89!!

 

[S2007S]

It is sure quiet without S2007S....(oh wait...that is my other login.)

Nice one noddy.....

Was a bit busy yesterday but back today, been playing around with binary options the last 2 days trying to learn a different technique other than stock trading, so far so interesting, just been playing trades on the s&p 500, oil, dow and ndx 100. Playing with $25,000 fake money...this morning all fake trades I put on are green due to the huge rally...will see where my account is by the close...

anyone here trade binary options if so what exchange do you use? Im using Nadex...

 

[noddyboy]

Nice one noddy.....

Was a bit busy yesterday but back today, been playing around with binary options the last 2 days trying to learn a different technique other than stock trading, so far so interesting, just been playing trades on the s&p 500, oil, dow and nix 100. Playing with $25,000 fake money...this morning all fake trades I put on are green due to the huge rally...will see where my account is by the close...

anyone here trade binary options if so what exchange do you use? Im using Nadex...

We missed you!

I never traded binaries before. Are they liquid? Do I need a special broker?

I missed the BTFD this morning, and now it is blowing away...not sure if it is too late to buy. SPY at 50SMA but can rally to close the gap. (or it can fail at 50SMA)

 

[S2007S]

We missed you!

I never traded binaries before. Are they liquid? Do I need a special broker?

I missed the BTFD this morning, and now it is blowing away...not sure if it is too late to buy. SPY at 50SMA but can rally to close the gap. (or it can fail at 50SMA)

I didn't buy the dip either, market is in huge rally mode due to falling dollar, market is completely ignoring the huge intel warning which on a day like today would be knocking the nasdaq into dark red. I still own SPXL so thats up pretty good today, but other than that made a trade in SOXS at $11.89, trading flat right now, but if dollar starts to rally and stocks fall Im ready with some SOXS, nearing $12 as I write this.....

As for binary options all you need to do is set up an account with Nadex, Im probably going to put in $500 and just make small trades, you basically predict if a price is going to drop or rise, for instance I just placed a trade that by 11am the dow futures will be below 17798, right now that bet is up, I can close it now for a profit or let it settle at 11am, every option is either worth $100 or $0 when it closes....



Another example: NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer is $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80 (or place a bid at a lower price and hope someone sells to you at that price). If you the think the index will be below $3,784 at that time, you sell at $74.00 (or place an offer above that price and hope someone buys it from you).

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the "strike price") by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts ("size") at $74.00. The Nadexplatform automatically calculates your maximum loss and gain when you create an order, called a "ticket."


http://www.investopedia.com/articles/active-trading/061114/guide-trading-binary-options-us.asp


its still a little confusing to me but Im going to take 2 weeks to play with the demo account and see how I do, if I do alright and learning a little bit Ill start off with just $500.

 

[noddyboy]

I didn't buy the dip either, market is in huge rally mode due to falling dollar, market is completely ignoring the huge intel warning which on a day like today would be knocking the nasdaq into dark red. I still own SPXL so thats up pretty good today, but other than that made a trade in SOXS at $11.89, trading flat right now, but if dollar starts to rally and stocks fall Im ready with some SOXS, nearing $12 as I write this.....

As for binary options all you need to do is set up an account with Nadex, Im probably going to put in $500 and just make small trades, you basically predict if a price is going to drop or rise, for instance I just placed a trade that by 11am the dow futures will be below 17798, right now that bet is up, I can close it now for a profit or let it settle at 11am, every option is either worth $100 or $0 when it closes....



Another example: NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer is $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80 (or place a bid at a lower price and hope someone sells to you at that price). If you the think the index will be below $3,784 at that time, you sell at $74.00 (or place an offer above that price and hope someone buys it from you).

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the "strike price") by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts ("size") at $74.00. The Nadexplatform automatically calculates your maximum loss and gain when you create an order, called a "ticket."


http://www.investopedia.com/articles/active-trading/061114/guide-trading-binary-options-us.asp


its still a little confusing to me but Im going to take 2 weeks to play with the demo account and see how I do, if I do alright and learning a little bit Ill start off with just $500.

Best of luck with that. I am going to stay away for now.

 

[S2007S]

Best of luck with that. I am going to stay away for now.

I hear you, funny thing is I opened this fake account 2 days ago and already have an account value that went from $25,000 to $27,000+ and Im just throwing on trades, if that were a real account it would probably have about $21,893.....

 

[S2007S]

As I mentioned last week about apple being added to the dow, I believe its a little too late, if anything this should have been done in 2009, instead cisco it should have been apple....at that point apple had already established itself with the ipod, iphone, and imac...they were already on their 6th generation ipod and starting to take huge market share in the smartphone industry, to add apple into the dow today is like adding intel and msft in 1999, apple is going to have to sell 35-55 million iphones a quarter, over 5 million macs a quarter, 15-20 million iPads a quarter and who knows how many watches, the thing is apple is priced to perfection, meaning any draw down in iphone, imac, ipad, or watch sales and this stock is falling hard.


Even with Apple, the Dow would still be meh
Jeff Cox | @JeffCoxCNBCcom
15 Mins Ago


For all of the excitement about Apple joining the Dow Jones industrial average next week, it might not make such a big difference.

In fact, had the Cupertino, California tech behemoth been in the group since the start of the year, the index still would be struggling to get into positive numbers, according to computations by brokerage firm Convergex.

As of Wednesday's close, Apple's $143 share price, including a 12 percent year-to-date gain, would have added just 82 points to the price-weighted index—a nice gain but barely enough to pull the average to level ground in an up-and-down year for the market. The Dow was off 187 points for the year heading into Thursday trading, which saw a nice rally on Wall Street that brought the industrials to around even in 2015.

"To get the Dow moving higher, you'll need some of the heavyweights in this price-weighted measure to get moving," Nick Colas, the chief market strategist at ConvergEx, said in his morning note Thursday.

Nasdaq congratulates Apple for joining the Dow Jones Industrial Average
The Dow, which gets most of the market headlines, differs from the S&P 500, which is a much broader assessment of market conditions, in one key way: It is price weighted, rather than cap-weighted. The difference is that companies with higher share prices will have a bigger impact on the Dow, while those with higher total worth i.e. market capitalization exert greater force over the S&P 500.

So even though Apple is the largest company in the world with a $712 billion market cap, it only has a 4.3 percent weighting in the Dow.

Still, Apple's 82-point boost to the Dow would place it second for the year among the biggest contributors, behind onlyBoeing, which had added 144 points as of early Thursday trading, according to FactSet. The next biggest contributor wasUnited Health, with 81 points, followed by Walt Disney, with 68 points.

The biggest drag on the Dow has been American Express, with a subtraction of 74 points, with Caterpillar next at 72 points. Dow additions are calculated using share price times a divisor, which currently is 0.155716585.