By understanding how waves develop and where they often see reversals, you can start to build a trading strategy that aims to capitalise on this process. As I have described for you many times, the best approach I have found is to work your way into a cheap straddle by buying out of the money puts (if you are expecting a correction) with a strike price at the expected targets.
During a bull market when most issues are rising, some stocks won’t join the party. Instead they’ll fall and become part of their own little bear market. And when the general trend is rising, some will lead the way while others lag behind.
Was the value of the largest 500 stocks really worth 20% less in December than in October last year? No? So why did these blue chips, thought to be stable and safe, fall so much so quickly?
‘Everyone else was doing it at the time. I thought it was a good idea too.’ The phrase has turned into exactly that: an excuse for a herd mentality. The latest followers are the UK government. They’ve seen Trump’s tariffs.
As the market becomes more bullish and excitement increases about a resolution of the US-China trade biff, the overbought technical situation into the sell zone of a quarterly sell pivot is a very compelling set up that only comes along once every three to five years.
If you had better than 20/20 vision to see into the near future, you’d have put your money in Aussie small-caps at the start of 2019. The Small Ordinaries (white line), a proxy index for Aussie small-caps, is up more than 11% this year.
Georgia is in the midst of a bitcoin gold rush. It’s a place where Bitcoin is exempt from all taxes and can easily be exchanged for real money.
At time of writing, Spark Infrastructure share price is trading 7.37% lower than their trade halt lock price of $2.51 apiece. Spark Infrastructure enforced a trading halt last Thursday, 7 February prior to an impending announcement.
After the US Fed made a sharp about-face last week in response to the market volatility at the end of last year, we find ourselves in a situation where the technical picture is still very bearish but there has been a potentially large shift in the fundamental situation.
It’s not lower interest rates that encourage people to borrow and invest in an economy. It’s the level of perceived risk and uncertainty that either encourages or discourages those borrowers and investors.