All posts by T3 Live
David Prince & JR Romero Talk CPI, FOMC, Apple, Nvidia, and MORE!
In today’s live stream, David Prince and JR Romero discuss: What today’s cool CPI report meant Where inflation is going next Why Apple (AAPL) has been so strong this week The outlook for IWM What names they like for the next 3 months
Continue Reading -->NEW: Options In Plain English
Introducing… What if you could learn Options In Plain English? Without all these crazy equations: You can… which is why options pro Dan Darrow created an all-new LIVE training program called… Options In Plain English Yes, we really called it that. It teaches you how options trading works… in Plain English… so you can understand it. Zero fluff. Zero complicated math. 100% focus on what makes options move, from a pro who’s been slinging options with real money for 18+ years. He hasn’t been buried in textbooks. He’s been trading real money. That means he can: Help you avoid big mistakes that cost you hundreds or thousands of dollars per trade Let you see when an idea is worth taking Show you how to use the right strategy at the right time in the right name This Is NOT for Everyone We do not recommend Options In Plain English to advanced options traders. But you will love this program if: You are new to options and want to build the right foundation You have some experience but want to be more profitable You want consistency in your profits instead of riding an emotional rollercoaster* *Many people start with options wanting to swing for the fences over and over again. If this is your mentality, you will end up broke, angry, and regretful. Dan will teach you to take smart risks so you can win in the long run. We want you winning for YEARS — not blowing your whole account in the next 5 days. How About Pricing? We’re spicing things up since this is a new launch. You have two packages to choose from. One is awesome. And one is more than awesome. BUT… they are both the same price. We explain here. Sincerely, -T3 Live
Continue Reading -->JR Romero Momentum Mastery Webinar Offer – July 2023
LIMITED TIMEJust $295 for This $1,380 Value Newsbeat VTF® Bundle! Check Out Now 0 2 Days : 0 5 Hours : 1 7 Minutes : 4 2 Seconds You missed out! $585 Value: 3 months of Newsbeat VTF® service for JR’s live trade ideas plus nightly coaching sessions plus recordings.$795 Value SUPER Bonus: Momentum Mastery Course to learn JR’s system for finding new trades and prediction price movements$1,380 Just $295 – You Save $1,085 Check out Now About the Newsbeat VTF® – $585 Value Membership Included with Your $295 Purchase TodayToday’s $295 special offer gives you 3 months of Newsbeat VTF® service, which normally costs $585. Are you sick of being late to every big trade? JR Romero uses pinpoint chart skills to give you the best trading opportunities every single day. That’s why Newsbeat has so many success stories, like this one: I had quit my 9-5 job selling mortgages back in November 2021 to trade full time. It was the biggest risk I’ve taken, and the Newsbeat room has helped build my confidence. My P&L has been increasing and I’ve been paying the bills because of the room.-Nick from California Plus, JR hosts coaching sessions 5 nights a week so you can get all your questions answered. Want to talk about trade setups? Psychology? Risk management? JR can help. And again, this $585 value membership is included with your $295 purchase price: Check out Now $795 Value Super Bonus Included: JR’s Momentum Mastery CourseJR will help you earn with his unique trade ideas. But he wants you to learn too. So welcome to Momentum Master — your A-to-Z guide to understanding price action and harnessing momentum for profit:-15+ hours of on-demand video-654-page course guide included$795 is the regular price.And it’s included with your $295 purchase today! After you join, log into your customer portal to start learnings right away: Check out Now What They Said About JR’s Newsbeat VTF® and the Momentum Mastery Course I had quit my 9-5 job selling mortgages back in November 2021 to trade full time. It was the biggest risk I’ve taken, and the Newsbeat room has helped build my confidence. My P&L has been increasing and I’ve been paying the bills because of the room.-Nick from California I definitely recommend the room. There is tons of value here for the new or seasoned trader. JR helps me trade what is happening rather than trying to trade what I think will happen.-Andrew from New York The call outs on support and resistance of stocks and the indices has made me so much money. More Importantly, I have the understanding of why these levels are there, why they might hold, and why they might break.-Louie from Texas I love JR’s technical analysis of the market and individual tickers. His constant updates of where the market is at technically speaking, has been a very valuable resource. Also, the interpretation of news and the overall market sentiment has been incredibly useful.-Guru from Boston JR’s commitment and professionalism makes it interesting and helpful.-Larry from Texas I like that JR verbally calls out trade opportunities. But not just that, he also explains the strategy, triggers and targets behind the trade. I also like the chat and the community.-Dino from Michigan I definitely recommend the room. There is tons of value here for the new or seasoned trader. JR helps me trade what is happening rather than trying to trade what I think will happen.-Andrew from New York The use of Algo Lines/Levels by the room has given me so many more ways to trade by knowing exactly where to get in and out of a position.-Rocco from New York I felt for so long that I didn’t really know what I was looking for, when to take action, and whether or not it would work. After taking Momentum Mastery, I now feel like I can read the market with a higher degree of confidence, know better what to look for and when to take action, and feel like I can have an edge in the market now.-Greg from Georgia I would absolutely recommend the Momentum Mastery course to other traders (and already have!). Whether a novice or experienced trader, I believe they would benefit from the information taught in this course.-Chris from California JR has put in enormous effort and countless sleepless nights to build this course purely for the benefit of those who truly want to learn how to trade. The time and money spent on the course are well worth the while.-Zee from Canada JR has opened my eyes in how professional traders see the market. He does a wonderful job in the training as well as handholding in the VTF.-Mikey from Massachusetts LIMITED TIMEJust $295 for This $1,380 Value Bundle! 0 2 Days : 0 5 Hours : 1 7 Minutes : 4 2 Seconds You missed out! $585 Value: 3 months of Newsbeat VTF® service for JR’s live trade ideas plus nightly coaching sessions plus recordings.$795 Value SUPER Bonus: Momentum Mastery Course to learn JR’s system for finding new trades and prediction price movements$1,380 Just $295 – You Save $1,085 Check out Now Meet JR Romero Leader of T3 Live’s Newsbeat Virtual Trading Floor®JR Romero is the Leader of T3 Live’s Newsbeat Virtual Trading Floor® service.He has been a trader since 2001, specializing in technical scalping and news flow analysis.JR attended Columbia University, where he majored in Computer Science and History. He worked as a trader for some of the world’s largest hedge funds.His unique equities trading style combines chart analysis, news flow, and intermarket relationship studies to generate high-probability ideas.JR is also a passionate trading educator, and he takes every opportunity to turn real-world market events into actionable lessons.JR trades out of Idaho, where he lives with his wife and 3 children. Check out Now Testimonials Disclaimer The customer feedback provided is reported by our customers and is not verified. Because it is difficult to track the success of all of our customers, we want to make clear to you, the potential customer, that you
Continue Reading -->The 20 Best Stocks of 2023
What are the best-performing stocks in 2023? AI stocks like C3.ai (AI)? Biotechs like Prometheus Biosciences Inc. (RXDX)? You’re about to find out. We fired up our scanner to find the 20 biggest gainers of 2023. We limited the list to stocks with market caps over $1 billion to eliminate the most speculative names And we found: Several takeovers Multiple biotech and pharma names One megacap semiconductor stock Several companies with little Wall Street coverage Our list starts at #20 and works its day down to #1. Dig in! *Data sourced from KoyFin on 4/25/2023 #20: Altair Engineering Inc. (ALTR): +54.0% Altair Engineering Inc. is a software company that provides advanced simulation and optimization solutions, helping businesses improve product design, engineering, and performance, while reducing development costs and time-to-market. The stock is covered by just 10 analysts, according to KoyFin. #19: West Pharmaceutical Services Inc. (WST): +54.1% West Pharmaceutical Services Inc. is a medical device company that develops and manufactures drug delivery systems and packaging solutions, helping to ensure the safety, efficacy, and convenience of pharmaceutical products. Aside from its huge earnings gap in February, driving by a huge beat, WST has been gently gliding higher with very little volatility. Impressive! #18: National Instruments Corporation (NATI): +57.3% National Instruments Corporation is a technology company that designs and manufactures electronic measurement and automation equipment, providing advanced solutions for industries such as aerospace, defense, automotive, and electronics. National Instruments was acquired by Emerson Electric (EMR) for $8.2 billion in April. #17: agilon health inc. (AGL): +57.4% agilon health inc. is a health care services company that partners with primary care physicians and health systems to provide value-based care solutions, focusing on improving health outcomes and reducing costs for patients and payers. This is one of the more interesting charts we’ve seen. agilon has a knac for huge drops… and huger rallies back up. #16: Seagen Inc. (SGEN): +57.9% Seagen Inc. is a biotechnology company that develops and commercializes novel cancer therapies, leveraging cutting-edge science and technology to improve patient outcomes and advance cancer treatment. #15: World Wrestling Entertainment Inc. (WWE): +59.1% World Wrestling Entertainment Inc. (WWE) is a media and entertainment company that produces and distributes live and pre-recorded sports entertainment programming, including professional wrestling events, TV shows, and digital content. On April 3, 2023, Endeavor Group Holdings (EDR) announced it was acquiring WWE for $9.3 billion. #14: UWM Holdings Corporation (UWMC) +66.0% UWM Holdings Corporation is a mortgage lending company that offers a range of loan products and services to homebuyers and homeowners, leveraging technology and innovation to simplify the mortgage process and provide an exceptional customer experience. The housing market is slowing, but UWM stock has shown remarkable momentum in 2023. #13: Samsara Inc. (IOT): +67.3% Samsara Inc. is an Internet of Things (IoT) company that provides fleet management, asset tracking, and industrial monitoring solutions, helping businesses optimize their operations and reduce costs through advanced technology. Samsara has nearly tripled off last year’s lows thanks to some big revenue and earnings beats. #12: e.l.f. Beauty Inc. (ELF): +69.6% e.l.f. Beauty Inc. is a cosmetic and beauty products company that offers affordable, high-quality makeup and skincare products, with a focus on inclusive and diverse beauty standards. e.l.f. put in a string of big earnings beats, setting the stage for big gains this year. #11: Align Technology Inc. (ALGN) +70.4% Align Technology Inc. is a medical device company that designs and manufactures clear aligners and other orthodontic products, providing innovative and effective solutions for patients seeking to improve their oral health and smile. Align had a big earnings beat in February to send it soaring, and it’s right back at those highs in late April. #10: Apellis Pharmaceuticals Inc. (APLS) +71.6% Apellis Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company that develops and commercializes novel therapies for the treatment of complement-mediated diseases, using a proprietary platform that leverages advanced science and technology. #9: Qualtrics International Inc. (XM) +72.9% Qualtrics International Inc. is a software company that provides experience management solutions, helping organizations measure and improve customer, employee, product, and brand experiences through advanced data analytics and insights. Note that on May 13, Qualtrics accepted a $12.5 billion offer to go private. #8: Meta Platforms Inc. (META) +73.9% Meta Platforms Inc. (formerly Facebook) is a social media and technology company that operates a range of digital platforms and products, connecting billions of people around the world and providing a wide range of services and experiences. Meta has benefited from a strong Q4 earnings report and aggressive cost-cutting by CEO Mark Zuckerberg. #7: Lantheus Holdings Inc. (LNTH) +76.3% Lantheus Holdings Inc. is a medical imaging company that develops and manufactures diagnostic imaging agents and medical imaging equipment, with a focus on providing high-quality and safe imaging solutions for patients and health care providers. #6: Prometheus Biosciences Inc. (RXDX) +76.7% Prometheus Biosciences Inc. is a biopharmaceutical company that develops and commercializes novel therapeutics for the treatment of inflammatory bowel disease, leveraging advanced technology platforms and deep scientific expertise. On April 17, 2023, Merck (MRK) announced it was buying Prometheus for $10.8 billion. #5: Oak Street Health Inc. (OSH): +81.1% Oak Street Health Inc. is a primary care provider that offers personalized, preventive health care services to seniors, with a focus on improving health outcomes and reducing health care costs. On February 8, CVS (CVS) announced it was acquiring Oak Street Health (OSH) in a $10.6 billion deal. #4: NVIDIA Corporation (NVDA): +83.5% NVIDIA Corporation is a technology company that designs and manufactures high-performance graphics processing units (GPUs), providing advanced computing solutions for industries such as gaming, artificial intelligence, and scientific research. The semiconductor sector has been remarkable strong in 2023, so it’s no surprise that Nvidia has surged. #3: DraftKings Inc. (DKNG): +87.9% DraftKings Inc. is a digital sports entertainment and gaming company that operates fantasy sports contests, sports betting, and online casino games, providing users with real-time experiences and unique gaming opportunities. March Madness has been a big growth driver for Draft Kings in
Continue Reading -->Meet Pro Trader JR Romero, Leader of the Newsbeat VTF®
Today we’re speaking with JR Romero, the Leader of T3 Live’s Newsbeat Virtual Trading Floor. You’ll hear about JR’s adventure from Argentina to Brazil to New York to Idaho. And you’ll learn how this Columbia University graduate went from coding to working for a major hedge fund to trading his own money. You’ll even hear about the time the roof collapsed on JR during a trade. Editor’s Note: this transcript has been edited for length and clarity. Greta Wall: I want to start from the very beginning here. Tell me about your childhood. JR Romero: Thank you for having me. It’s a pleasure to be with you today. I was born in Argentina in the late seventies during the military junta. My parents were political exiles. I grew up in Brazil and moved to the United States in the late nineties. GW: What it was like growing up in Brazil, and then emigrating to the US? JR: I had a pretty free-range childhood. If I was indoors, I was eating, sleeping, or injured. I had a wonderful childhood with lots of friends, and not a lot of schoolwork. But it was a really remarkable time. GW: What was your family like? JR: We have a long history of entrepreneurship in my family. My grandparents and great-grandparents were all business owners. My father was an economist and a business owner. He was also a very active investor, especially in the forex markets. And my mother was a dance therapist and educator. I have one sister who lives in Uruguay with two children. GW: So you didn’t spend a lot of time inside as a kid. What were your hobbies? JR: I was a pugilist from a very early age. I was very much into karate and judo. And then in my teens, I got pretty heavily into boxing. And I’ve been getting punched in the head ever since! GW: Do you still box? JR: The mileage caught up to me. I’m in my late forties, so I only hit things that don’t hit back. I do the heavy bag and light sparring, and I enjoy coaching my children. Both my sons are avid enthusiasts of boxing and kickboxing. So I’m trying to pass the torch on. GW: Did you come to US with your parents from Brazil or on your own? JR: I left the house at 17. I was a snowboarder and traveled around for a couple of years. I couch-surfed quite a bit. And my girlfriend at the time had a college application to Columbia University. I stole it from her (with permission), applied, and got in. So I came here at 19. GW: You said your dad was an investor. Did he introduce you to trading and the markets? JR: No, not at all. I was a computer engineering major at Columbia University, and then I worked for a hedge fund on the technology side. And through my interactions as a contractor, I was hired by a very important hedge fund. There I became really enthralled with the traders and how they saw the world, how they constantly analyzed probabilities about everything. They would take bets on what time the pizza guy would get there, down to the second. They built algorithms to figure out which restaurant would deliver faster, so I was instantly hooked. And I had a couple of people that took me under their wing within that organization. That’s how I was initially introduced to trading. GW: Tell me more about that transition from the IT side into the trading side. JR: I was immediately paired with the quants because of my computer science background. But I was sort of bored by it. I understood what they were doing. I was more fascinated by technical analysis, charting, and economic catalysts. It was fascinating to watch how trading decisions were made. And I asked to be trained and I was given a shot to participate in that. Eventually, I started trading on my own. It was a real struggle at first, going from institutional to private trading. You don’t have risk managers looking over your head. You don’t have team meetings. You don’t have that kind of support. When you go from trading institutional money to your own money, it’s a very different feeling that’s very hard for some traders to adjust to. GW: When you look back on your early days of trading for yourself, what would you say was the biggest mistake that you made? I was an acute sufferer of the Dunning-Kruger effect from my early days. (Editor’s Note: The Dunning-Kruger effect is a psychological phenomena which occurswhen a person’s lack of knowledge leads them to overestimate their abilities) I had a strong foundation in math and science and a keen understanding of technical analysis. After a couple of years, I thought I was really a good technician. But I found out there is a vast difference between being proficient at reading charts, and actually being a trader. That transition was very difficult and very painful. And it led me down some rabbit holes that took some time to untangle. But, eventually, I figured out a trading style that fit me, and a methodology that worked for my personality, And it’s been a great ride ever since. GW: On the flip side, what was the best thing you did in your early days of training? JR: Asking for help was the best thing I ever did. And the second best thing I ever did was to realize early on that as a trader, you are truly on your own. No one else possesses your same personality profile, your same characteristics, and your same view of the market. And I realized that to be successful, I needed to develop my own sensibility, my own strategy, and my own approach to markets. GW: So you mentioned earlier that had mentors at the institutional firm you were working for. Tell me about those mentors and how
Continue Reading -->Kira Turner Talks Trading, Skydiving, Scubadiving, and Rodeos
Inner Circle’s Kira Turner appeared on the Madam Trader podcast to talk her trading career, and her fascinating history in high-stakes sports like rodeos and skydiving: After you listen, check out Inner Circle.
Continue Reading -->2 Minute Reversals Webinar Replay
Check out our latest webinar with JR Romero of Newsbeat, where he teaches his #1 Day Trading reversal strategy After you watch the video, check out our Black Friday sale!
Continue Reading -->26 Questions With Derrick Oldensmith
Get to know Pro Trader Derrick Oldensmith in this fun interview! *This transcript has been edited for length and clarity Who are you? I’m Derrick Oldensmith and I am a Senior Trader and Registered Principal at T3 Trading Group. How long have you been a trader? I’ve been a trader with T3 for about 12 years. I was a sales trader for a different company before that. And I’ve been involved in markets in one way or another since I was a kid. I bought my first stock when I was about 13 years old. Do you love it? I love what I do. Every day is different, and that’s what gets me excited. I’m looking at the same Excel spreadsheets all day, every day. I’m studying the market. My role is to figure out the next step of this constantly evolving puzzle. What’s the most important personality trait for a trader? The most important personality trait for a trader is to be disciplined. Discipline, first and foremost with your risk management and your money management. A lack of discipline with risk management and money management is the number one reason why traders fail in this business. You also have to be disciplined with the rules that you create for your trading. The only way that you can be a consistently profitable trader is to be consistent in regards to your actions with the market. The only way that you can do that is by having rules in place that you are consistently following. That may sound easy right now, but when you’re in front of the screens, and your P&L is moving, it can be very difficult. What’s the best trade you’ve ever made? One that just comes to mind right away was being long JNUG on the run back up after Covid. It might not be my best trade ever but it’s up tere. It’s a 3X leveraged junior miner gold ETF. I always think it’s funny because for most of my career I’ve disliked the gold miners as trading vehicles and even as investments. Yet here I am involved in a 3X leveraged junior Gold miner ETF in a multi-week swing that turned out to be one of my best trades ever. How do you define success as a trader? That’s a very individual question for each trader based on the goals that they make for themselves. First, you have to have goals. And then success is in achieving those goals and then in the creation of new goals. Those could be goals for profitability, for consistency, or for building an account size. How do you stay up to date with the changing financial markets? I read a lot of news and information. And what I try to avoid as much as possible, which is really hard in this day and age, is other people’s opinions. I want more of the cold, hard facts of the news. And then I take that information into my own brain to try to figure out the next steps. And then of course, you need to have the the technicals confirm that. But this is not a 9 to 5 gig. There is a lot of work that needs to be done in order to be successful in this business. What’s the hardest mistake to avoid while trading? Probably getting in your own head. It goes back to being a disciplined trader and having a disciplined approach. It always sounds very easy on paper that you just have to do the right things consistently over time with your trading. But in practice, it’s so easy for us to get in our own heads. You get shaken out of that one trade right before it works. Or you have a bad P&L day and then it affects your next day of trading. What did you hate most about learning to trade? It’s a tough question, because I love learning, period. The hardest thing about learning, though, is probably the fact that you’re going to take a lot of step backs, right? A lot of this business is, you take two steps forward in your trading, two steps forward in your learning process, just to then have the market environment change, or you take a P&L hit, or a new obstacle gets in your way. And then you’re taking one step back. But sometimes you have to take that one step back in order to learn more and take those next two steps forward. So, I love learning in general, but you’re absolutely going to hit stumbling blocks along the way. Do you beat yourself up after a bad day? Before I can answer, I have to define what a bad day is in trading. I don’t think that a good day or bad day is necessarily P&L based. Obviously, that has something to do with it, right? If you have a big P&L day, up on the upside or on the downside, it’s hard not to feel a degree of emotion about that. But the real thing to be asking yourself when you have that good day or you have a bad day is, “did you do the right things today?” Because if you did all the wrong things and made a lot of money, you should not be happy about that. As a matter of fact, if you are happy about that, you’re setting yourself up for long-term failure. The truth is that we work in a game of probabilities. Sometimes you will do all of the right things and still lose money. You have to be able to take a step back and say, “Hey, I did all the right things. If I did this 100 times, I’m gonna be making money in the long run. It just didn’t work out today.” So, when I beat myself up, it isn’t just because I lost money today. It’s because I made mistakes that caused me to lose money. Or heck,
Continue Reading -->SPY vs. QQQ for Day Traders: What You Need to Know
SPY and QQQ are the two most discussed ETFs in the world. Every single trader out there has bought or sold them at some point. But what are the differences between SPY and QQQ? And are they more similar or different? SPY vs. QQQ: In ShortSPY and QQQ are very similar, but have some important differences. QQQ is more volatile because it is more concentrated in technology and high-growth stocks. It also has no exposure to energy or financials. Many active day traders like QQQ more than SPY because of its increased volatility. So as you’d expect, SPY outperforms when financial and energy stocks are in favor. SPY also has a lower expense ratio and higher dividend yield, which help it appeal to swing traders and long-term investors. The Basics of SPY and QQQSPY is the symbol of the SPDR S&P 500 ETF Trust.It is managed by State Street Global Advisors, one of the largest asset management companies in the United States.SPY tracks the performance of the benchmark S&P 500 index.QQQ is the symbol for the Invesco QQQ ETF, which is managed by Invesco.QQQ is based on the Nasdaq 100 index, not the Nasdaq Composite as commonly thought.Traders never use the full names of these ETFS.You often hear people SPY called simply SPY, SPYs (pronounced like spies), or “spiders” which is a reference to the SPDR brand name.And when you hear a trader say “the Qs” they are talking about QQQ.What SPY and QQQ Have in CommonSPY and QQQ are similar in many ways.They give you instant exposure to a variety of companies, though in different ways, as you will see below.Both ETFs are extremely liquid.At the time of writing, SPY traded 81 million shares per day, while QQQ’s average volume was 58 million. Plus, both have active options markets.So it’s easy to get in and out of positions.SPY and QQQ are also inexpensive. SPY has an annual expense ratio of 0.09% while QQQ’s is 0.2%.Short-term traders love the liquidity of these instruments. And long-term investors like the low expense ratios.SPY and QQQ are also both based on market cap-weighted indices, meaning that the stocks with the biggest market capitalizations have the biggest weightings in the funds.SPY vs. QQQ: A Holdings ComparisonThis is where things get interesting.SPY and QQQ have many holdings in common. In fact, the top 4 holdings in each are identical. And 6 of the top 10 are the same.Here’s each fund’s top 10 holdings by weight. HoldingSPY QQQ#1 Apple (AAPL): 7.0% of the fund Apple (AAPL): 14% of the fund#2 Microsoft (MSFT): 5.3% Microsoft (MSFT): 9.9%#3 Amazon (AMZN): 2.6% Amazon (AMZN): 5.7%#4 Tesla (TSLA): 1.9% Tesla (TSLA): 4.0%#5 Alphabet Class A (GOOGL): 1.7% Alphabet Class C (GOOG): 3.2%#6 Berkshire Hathaway Class B (BRK.B) Alphabet Class A (GOOGL): 3.1%#7 UnitedHealthy (UNH) Nvidia (NVDA): 2.8%#8 Alphabet Class C (GOOG): 1.5% Pepsico (PEP): 2.5%#9 Exxon Mobil (XOM) Costco (COST): 2.1%#10 Johnson & Johnson (JNJ): 1.4% T-Mobile (TMUS): 1.9%Data Source: MorningstarAnd if you notice, the QQQ is much more top heavy. This is because it is comprised of 103 stocks vs. 503 for the SPY. Note: the Nasdaq 100 has 103 stocks in it and the S&P 500 has 503 stocks. This is because some companies like Alphabet (GOOGL) have more than one share class.The top 10 stocks in the QQQ account for 49.2% of the fund, so just 10 out of 103 holdings account for almost half the fund’s performance. Apple (AAPL) is number-one at 14.0%.SPY’s 10 biggest holdings are 26.0% of the fund, with Apple weighing in at 7.0%.Now let’s talk about sectors.People often equate QQQ with technology because 50% of the fund’s assets are in tech stocks vs. 26.2% for the SPY. And interestingly, QQQ has zero exposure to energy, financials, materials, and real estate.SectorSPY QQQConsumer Discretionary 10.8% 15.4%Consumer Staples 6.9% 7.1%Energy 5.4% 0%Financial 11.6% 0%Healthcare 15.4% 7.6%Industrials 8.3% 3.8%Information Technology 26.2% 50.0%Materials 2.6% 0%Real Estate 2.6% 0%Communication Services 7.3% 14.7% Communication Services 3.0% 1.5%SPY vs. QQQ: VolatilityAs you’d expect, the QQQ is more volatile than SPY.Beta is a common measure of volatility for stocks and ETFs.The SPY has a Beta of 1.0, while QQQ’s is 1.10.So for every 1% SPY moves up or down, the QQQ is expected to move 1.1%.For that reason, many active day traders gravitate towards QQQ. They can get more movement, which is critical for day traders..Of course, on any given day, the performance can vary by a wide margin, particularly if there is big movement in tech stocks like Apple, Microsoft (MSFT), and Amazon (AMZN).During earnings season, you can expect dramatic differences between SPY and QQQ when a big name like Apple reports.SPY vs. QQQ: PerformanceSPY and QQQ’s performance is almost always in the same neighborhood because each has significant exposure to major sectors of the economy.However, performance during a given time period varies based on the risk appetite of the public.When markets are in a state of euphoria, expect QQQ to outperform SPY.In 2020, QQQ rose 48.6% because tech stocks like Apple and Tesla rallied so hard after the pandemic bottom.And when the market is bearish, QQQ will underperform because tech stocks get devalued quickly.When the tech bubble burst in 2000, QQQ fell -36.9% vs. a -9.2% drop for SPY.Sectors also play a role at times.In 2021 and 2022, SPY outperformed because of strength in energy stocks, of which there are none in the QQQ.Yes, 2022 is a down year as of this writing, but SPY is down less because of energy exposure.SPY vs. QQQ: Dividend YieldSPY’s dividend yield is 1.61%, more than double the QQQ’s 0.68%.That’s no surprise given that QQQ has no exposure to the highest-yielding sectors like financials, energy, and utilities. SPY vs. QQQ: Which Is Better?So what’s better? SPY or QQQ?The answer is… it depends on what you need and want.If you want more volatility in your portfolio and can stomach of risky technology stocks, QQQ fits the bill. In fact, many traders prefer QQQ because of the volatility.If you want stability, SPY makes more sense. What do you think? Do you trade SPY,
Continue Reading -->Rick March Talks Fibonaccis, Options, and Old School Trading Pits
Get to know Rick Turner one of our Inner Circle moderators, in this in-depth interview. Interview Transcript* *this transcript has been edited for length and clarity Michael Comeau: Rick, tell us about what it was like when you got started in the market, and how that’s different from today. Rick March: When I was 10 years old, my grandfather, who drew charts by hand, gave me his book of charts. It was 500 pages for the S&P 500 stocks. 90% of them don’t exist anymore. But I looked at the charts. And I said “when this crosses over this, it’s a buying indication.” I asked why, and he explained. When I was 13 years old, while my friends were going to camp and having a good time, I was a runner on the floor of the Chicago Mercantile Exchange. I was taking orders from the desks. That was my first experience on the floor. For my first, trade, I bought five December corn at $162.50. I would stand in a pit and trade one or two months of a commodity, or S&P, or the yen, or cattle, And now I sit at a desk and trade any 1 of 500 stocks and options. MC: So it was like Trading Places with people screaming at each other and making those crazy hand gestures? Is it actually more chaotic today than it was when you were on the floor? RM: Everything’s computerized now. And it’s not as fun as standing in a pit with 50 men and women, watching everybody scream and freak out. That was fun. Not because they were freaking out, but because you could read the emotions on their faces. Behind a computer screen, I can’t tell if somebody’s blown out longs. MC: So it seems like you started on charts from a very early age. How has technical analysis changed from then to today? RM: Back then, there were no algos. There were no computers. We drew trend lines and watch the breakouts. And if cattle broke out to a new high, we would tell our clients. We would do this all by hand and on the phone. There was no immediate drawing of a chart and posting it in Inner Circle. So that’s 100% different. And now, there’s easily 500 methods of of price and time analysis. Stuff like WD Gann Theory and Gartley existed, but you couldn’t calculate them quickly enough for the market. There were guys in the options pits, who had their sheets of what X options should be trading at Y desk and Y price. And they would stand there and look at their sheets. They wouldn’t make a trade until something came up on their sheets. MC: So we should be grateful with all the amazing technology we have today that’s basically free. RM: Absolutely, because it enables me as a trader and an analyst. It’s amazing. MC: Let’s talk a little bit about your trading style. How would you describe it? RM: I follow the market flow and the options. I’m very blessed to have two partners at Inner Circle. I don’t mind buying something at a high price thinking it’s going to trade higher. That’s how I do these SPX lotto call traders that you’ve seen there. Kira Turner is great at seeing a day trade coming, and David Prince plans trades better than anybody I’ve ever met in my life. So to answer your question, I swing trades, I do a lot of options trades, and I day trade. MC: Many technicians are pretty loosey-goosey and doing things by feel. So how mechanical is your buying and selling? RM: It depends on what I’m trading. I set alerts in stock where if they get hit, I can buy or sell the stock or option I want to be in. MC: You have no problem just pulling the trigger when that happens? RM: If I’m setting it up in options, then I don’t. Because I say, at $80, I’ll buy this. All right, at $100, I’ll sell this. And that’s what works for me with the stock. For example, I’ve been short Beyond Meat (BYND) for months from significantly higher prices. I want to cover in the single digits, but I haven’t put the order in because it could go lower. When you get to a level where you think you should buy or sell, you need to take action. If you don’t, you’ll regret it after the trade is done. That’s why we trim and trail. MC: Let’s talk about regret because I don’t think people talk about regret enough. When a trade is done, do you just fully put it behind you? RM: It would be nice to put it behind me. The way my brain works is, I pay attention to that stock or option for a couple of weeks after. I don’t necessarily go back into the same price and do the same trade, but I’m aware of it. Because if I made a mistake, I need to learn from it. So I can build my talent and build my equity going forward. MC: Do you worry about algos or HFTs when you are trading? RM: The only thing I worry about during my trading is when the market goes to a standstill. I don’t know what to do in a quiet market. My biggest frustration is a lack of action. MC: Is there ever a time where you just sit on your hands and do nothing? RM: I’m trying to do more and more of that. MC: It seems like people have an urge to take action, to just do something. RM: They absolutely do. For some people, it’s like being at the casino and seeing the craps table. They have to do something. But trading is not a casino. Trading is not gambling. We figure out the possible risk versus the probable or improbable reward. You have to think through risk before you
Continue Reading -->