Trader’s Digest: The 10 Stories We’re Reading Right Now
Wonder what traders are talking about today? We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:Why Elon Musk building a hyperloop is good for youWhat Kraft Heinz and Oprah have to do with one anotherCryptocurrency and the next boomAnd more! So check out these links right now and get up to speed: 1) Great News For Everyone! Elon Musk Is Building A Hyperloop (Wired)ELON MUSK IS back in the loop.Four years after encouraging anyone and everyone to try making his crazy hyperloop idea work, the Silicon Valley titan has decided he’s not too busy to do it himself after all. Read the Story ==> 2) Google Memo Drama Is CEO Sundar Pichai’s Greatest Trial Yet (Fortune) In almost two years as Google’s CEO, Sundar Pichai has weathered multiple storms with relative ease. His search engine came out of the fake news brouhaha largely unscathed. Read the Story ==> 3) FREE Preview: Redler All-Access (T3 Live) Welcome to your FREE preview of T3 Live’s Redler All-Access newsletter. Redler All-Access gives you a complete trading plan from T3 Live Chief Strategic Officer and frequent CNBC guest Scott Redler. Continued Reading ==> 4) Kraft Heinz Hopes a Line of Oprah Products Will Boost Sales (Bloomberg) Kraft Heinz Co., struggling to ignite sales growth amid punishing grocery-industry competition, is turning to media magnate Oprah Winfrey to break out of a prolonged slump. Continued Reading ==> 5) Nvidia Earnings: Cryptocurrency Boom Could Lead to New Products (MarketWatch) The explosion in new cryptocurrency seems to be boosting graphics-card makers like Nvidia Corp., but acting on the demand is fraught with potential danger. Continue Reading ==> 6) Trading AAPL Step by Step (T3 Live)Apple (AAPL) hit a new record high at $161.40 today. To show you how I analyze and trade a big mover like this on a day-by-day basis, let’s take a look back at the 3 charts I’ve shared with Redler All-Access readers over the past few days: Continue Reading ==> 7) The New Smoking: Why Young People Are The Most Sleep Deprived (Triple J Hack) If you’re a young Australian who’s not getting enough sleep, the good news is you’ll probably sleep more when you’re older. The bad news is that we may also be heading to a dystopia of wakefulness as you battle to keep your job from sleepless robots. Continue Reading ==> 8) Disney’s New ESPN Streaming Service Is Launching Next Year (The Verge) Disney’s bombshell announcement today that it would be building its own branded direct-to-consumer streaming service, and ending its licensing deal with Netflix, came with another nugget of news… Continue Reading ==> 9) Wait. What? Floyd Mayweather breaks down the reasons Conor McGregor could (should?) upset him (MMA Junkie) We’re about two weeks away from all hell officially breaking loose in the combat sports world, if it hasn’t already. You’ve probably heard a thing or two about unbeaten boxing legend Floyd Mayweather (49-0 boxing) taking on UFC lightweight champ Conor McGregor (21-3 MMA, 9-1 UFC) later this month. Continue Reading ==> 10) Arnold Schwarzenegger’s Motivational Speech (YouTube) Here is a video for inspiration from Arnold Schwarzenegger, including his 6 rules of success speech.
Continue Reading -->The Bull Market Can Continue Forever. Really?
It’s foolish to read too much into any one anecdote, especially when it comes to soundbites and one-liners. But this statement from Leuthold Chief Investment Strategist Jim Paulsen on CNBC really caught my eye: “We’ve got a fully employed economy, rising real wages. We restarted the corporate earnings cycle. We’ve got strong confidence among business and consumers,” he said on “Squawk Box.” “The kick is we can do all of this without aggravating inflation and interest rates,” he said. “If that’s going to continue, I think the bull market could continue to forever.” To be fair, Mr. Paulsen tempered his statement with by saying “if that’s going to continue.” Nonetheless, it seems a little overboard to even imply a bull market can go on forever. That makes now a great time to go through our 5 sentiment indicators to see if the crowd also sees sunshine ahead for equities. (click here for a primer on the 5 sentiment indicators below) 1) VIX Spread – Bullish The VIX is at 9.82, which puts it within range of generational lows. That puts the 3-month spread at 3.97, which means that traders are fairly bullish. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 63. The F&G Index operates on a 1-100 scale, and a reading of 63 qualifies as mildly greedy. 3) AAII Sentiment – Neutral The latest AAII Sentiment Survey shows that 36.1% of individual investors are bullish. This 36.1% reading is roughly in-line with the 38.5% long-term average, and indicates that individual investors are basically neutral, even though the major indices are still near all-time highs. 4) CBOE Equity Put-Call – Bearish The CBOE Equity-Put Call ratio was at 0.71 Friday, which is above the long-term average. The 3-day moving average is 0.70, which is above the long-term average. These numbers indicate that traders are moderately bearish. 5) ISE Sentiment – SUSPENDED! For months, I’ve been pondering kicking out this sentiment indicator since it has seemingly lost predictive value. However, ISE has announced it has suspended the index, so now I’m being forced to eliminate it. I’ll likely replace it with the CBOE Skew index (SKEW), which uses options prices to determine whether traders are pricing in extreme risks. Conclusion Out of 4 sentiment indicators, we have: 2 bullish 1 neutral 1 bearish So it looks the crowd is in a more neutral state of mind after getting nutty a couple weeks ago. They definitely don’t believe in a “this bull market can last forever” scenario. That’s been pretty common this year. We’ve seen a few stretches with hyper-bullish sentiment, but they’ve never lasted. That’s been very frustrating for the bears, because these rapid pullbacks in sentiment seem to prevent the market from topping out. At the late 2007 market top, sentiment was incredibly bullish, but we’re seeing nothing of the like in 2017. So I’ll ask a question: can the market top without the bulls buying in emotionally? I really don’t know the answer.
Continue Reading -->How Sami Abusaad Made $1,800 In Less Than an Hour with ZYNE
In this special video, T3 Live Black Room Moderator Sami Abusaad takes you through a trade in red-hot biotechnology name Zynerba Pharmaceuticals (ZYNE). This trade, which used the proprietary Climactic Daily Buy Setup, returned $1,800 in less than 50 minutes. You’ll learn about: The daily chart pattern that gave Sami the setup for this killer day trade How Sami entered the trade Sami’s management method for momentum plays A key signal that tells you when there’s panic in the air The ‘beautiful reversal signal’ that told Sami to take profits Where Sami placed his stop, and why Click here to learn about the Black Room
Continue Reading -->Trader’s Digest: The 10 Stories We’re Reading Right Now
Wonder what traders are talking about today? We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:Why the stock market likes Donald TrumpApple’s big earnings report, and all the reasons to love the stockHow Apple came back from near-bankruptcy 20 years agoAnd more! So check out these links right now and get up to speed: 1) Why the Trump market keeps heading up, up, up (NY Post) The White House is in disarray, but the market isn’t scared. Indeed, the Dow is heading toward 22,000. And for good reason: For all the Trumpian hysterics of the last six-plus months, the fact that Hillary Clinton isn’t president is good for stocks. Read the Story ==> 2) Apple’s earnings have Wall Street learning to ‘stop worrying and love the super cycle’ (MarketWatch) It’s a strange love that analysts have for Apple Inc.’s stock, leading some of them to turn to Stanley Kubrick’s classic movie in order to describe the company’s latest quarterly results. Read the Story ==> 3) A Jaws of Death Divergence in the Dow (T3 Live) Over the last few months, we have flagged several big picture cycles that suggest an array of challenges will surface in the second half of 2017. Presumptively, this means the disconnect between the disarray in D.C. and geopolitics and the current calm in financial markets will end. Continued Reading ==> 4) Wall Street retreats after Dow breaches 22,000 (Reuters) The Dow breached the 22,000 mark briefly in early trading on Wednesday, powered by Apple’s stellar results, before stocks retreated sharply across sectors as investors locked in gains. Continued Reading ==> 5) Qatar Airways ends bid to buy stake in American Airlines (USA Today) Qatar Airways will drop its bid to acquire a stake in American Airlines, saying on Wednesday that its plan to buy as much as 10% in the USA’s biggest airline “no longer meets our objectives.” Continue Reading ==> 6) TRUTH: What You Need to Know About Prop Trading (T3 Live) Learn why training, community, and coaching can make you a more profitable, consistent trader. In this special webinar, T3 Live Senior Trading Counselor Amber Capra will teach you everything you need to get started as a prop trader: Continue Reading ==> 7) Inside Salesforce’s Quest to Bring Artificial Intelligence to Everyone (Wired) Five years after Advanced Micro Devices CEO Lisa Su first joined the company, and almost three years since she got the top job, the payoff for her radical turnaround strategy is finally arriving. Continue Reading ==> 8) The hyperloop just had its fastest test yet, nearly hitting 200 mph (The Verge) After over a year of incremental progress and underwhelming, low-speed tests, the hyperloop is finally starting to show us what it can do. On July 29th, Hyperloop One’s prototype pod accelerated down the length of its 500-meter-long test tube in the Nevada desert, reaching a top speed of 192 mph before gliding to a stop. Continue Reading ==> 9) Americans Die Younger Despite Spending the Most on Health Care (Bloomberg) Typically, the more a developed country spends on health care, the longer its people live. The U.S., which spends the most on health care, bucks that trend. Compared to the 35 countries in the Organization for Economic Cooperation and Development, which promotes policies to improve social and economic well-being, the U.S. life expectancy of 78.8 years ranks 27th. Continue Reading ==> 10) Steve Jobs at the Absolute Bottom (YouTube) Today, Apple hit all-time highs after a very strong earnings report. So it’s easy to forget that 20 years ago, many investors thought the company was heading for bankruptcy. This video at Apple’s 1997 World Wide Developers Conference will help you understand the principles and values that brought Apple back from the dead:
Continue Reading -->Are the Bulls Still Crazy?
On July 21, I went long VIX calls based on what I saw as: A) Bullish sentiment gone truly out of control B) My expectation that volatility was due for a reversion to the mean. And subsequently, the VIX hit a record low of 8.84, leaving me feeling like a dope. It’s since pushed back above 10, so let’s take a fresh look at sentiment to see just how confident the crowd is. (click here for a primer on the 5 sentiment indicators below) 1) VIX Spread – Bullish The VIX is sitting around 10.50 this morning. That puts the 3-month spread at 3.29, which means that traders are moderately bullish. However, this is a major downshift from the recent readings around 5. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 72. The F&G Index operates on a 1-100 scale, and a reading of 72 qualifies as moderately greedy. This indicator has been subdued for most of 2017, but it has been more bullish than usual lately. 3) AAII Sentiment – Neutral The latest AAII Sentiment Survey shows that 34.5% of individual investors are bullish. This 34.5% reading is roughly in-line with the 38.5% long-term average, and indicates that individual investors are basically neutral, even though the major indices are still near all-time highs. 4) CBOE Equity Put-Call – Bearish The CBOE Equity-Put Call ratio was at 0.63 Friday, which is in-line with the long-term average. The 3-day moving average is 0.66, which is actually above the long-term average. These numbers indicate that traders are moderately bearish. 5) ISE Sentiment – Neutral The ISE Sentiment Index is at 76 (meaning 76 calls bought for every 100 puts. The 10-day moving average is 93.4 (93 calls for every 100 puts) A 10-day moving average of 93.4 does indicate more demand for puts than calls, but relative to recent history, it’s actually a bit high. So I’ll call it neutral. Conclusion Out of 5 sentiment indicators, we have: 2 bullish (down from 4 last week) 2 neutral (up from 1) 1 bearish (up from 0) So it looks the crowd is getting back to a more neutral state of mind after getting a little nutty last week. That’s been pretty common this year. We’ve been getting occasional stretches of hyper-bullish sentiment, but they tend to die pretty quickly.
Continue Reading -->What You Don’t Know About Prop Trading… but Should
In this special extended webinar, Amber Capra breaks down everything you need to know about the exciting world of prop trading: Amber covers the world of prop trading from A to Z, including:How to determine whether prop trading is right for youWhy you need training, community, and ongoing coaching to succeedHow you can qualify for 100% tuition reimbursement in our prop programThe different licensing requirements for US and non-US tradersDetails about different trading platforms, including Fusion and LightspeedHow profit splits workHow much capital you need to get started as a prop traderRisk management techniquesWhy you need a ‘Forced Discipline’ risk management programWhether or not you can prop trade on a part-time basisTips for avoiding pitfalls that can hurt your trading careerHave a question about prop trading? Call 1-888-998-3548 or email us at info@t3live.com Learn About Our Omega Prop Program
Continue Reading -->Trader’s Digest: The 10 Stories We’re Reading Right Now
Wonder what traders are talking about today? We’re here with the top 10 stories we’re sharing with colleagues today, covering topics like:Twitter is no longer at death’s doorWhen Too Much of a Good Thing Could Spell Trouble10 Minutes For The Next 60 Years Of Your LifeAnd more! So check out these links right now and get up to speed: 1) Twitter no longer at ‘death’s door’ as earnings report approaches (Reuters) Twitter Inc heads toward its quarterly earnings report on Thursday with a stock that has risen more than 40 percent since April when much of Wall Street was ready to write off the tech company. Read the Story ==> 2) Market hype triggers ‘new major warning’ sign for stocks (CNBC) With a fresh round of record-breaking highs in the stock market has come a surge in investor optimism, and that eventually could create problems. Read the Story ==> 3) Is TSLA Positioning for a Minus One/Plus Two Ahead of Earnings? (T3 Live)TSLA dropped 80 points after our projected square-out at 384 in June. 360 degrees down from 284 is 309. Continued Reading ==> 4) Mark Zuckerberg double down defending A.I. after Elon Musk says his understsanding of it is ‘limited’ (CNBC) Two of the biggest tech titans in Silicon Valley have been publicly debating the potential of artificial intelligence this week: Mark Zuckerberg is optimistic, while Elon Musk is fearful — and says that the CEO of Facebook doesn’t understand the technology. Continued Reading ==> 5) General Electric: The End Is Near (Seeking Alpha) General Electric: (NYSE:GE) reported earnings and beat on both the top and bottom lines. Nevertheless, the stock sold off hard after an initial pop. Continue Reading ==> 6) TRUTH: What You Need to Know About Prop Trading (T3 Live) Learn why training, community, and coaching can make you a more profitable, consistent trader. In this special webinar, T3 Live Senior Trading Counselor Amber Capra going to show you the right way to get started as a prop trader: Continue Reading ==> 7) Why AMD’s Stock May Hit a 10 – Year High (Fortune) Five years after Advanced Micro Devices CEO Lisa Su first joined the company, and almost three years since she got the top job, the payoff for her radical turnaround strategy is finally arriving. Continue Reading ==> 8) Adobe Finally Kills Flash Dead (WIRED) IN 2010, STEVE Jobs banished Adobe Flash from the iPhone. It was too insecure, Jobs wrote, too proprietary, too resource-intensive, too unaccommodating for a platform run by fingertips instead of mouse clicks. All of those gripes hold true. And now, Adobe itself has finally conceded. Continue Reading ==> 9) Wall Street regulator sets sights on digital coin offerings (Reuters) Wall Street’s main regulator said on Tuesday that initial coin offerings (ICOs), a means of crowdfunding for blockchain technology companies, should be subject to the same safeguards required in traditional securities sales. Continue Reading ==> 10) 10 Minutes For The Next 60 Years Of Your Life (Be Inspired) Want to start taking clear, concrete steps towards achieving your goals? Check out this video for some inspiration and motivation to get started:
Continue Reading -->The Red Dog’s Roadmap
The SPX futures are up 2 ahead of the Fed this afternoon. It has been a methodical move since clearing the descending channel above 2430 to take out 2453 before making a new all-time high at 2481. Now we’ll look to see if the active bulls stay in control with upper support at 2464 and yesterday’s low at 2474. IWM gave another calculated entry Monday after it reclaimed $142.25 and cleared $143.55 to hit a hgih of $144.25. It will need to hold $143.21 to keep active bulls happy and, if it can, extend another day towards a target of $145. XLE is trying to stay relevant as some are long vs the $64.50 stop while others want to see if hold the 50day of $65.86. IBB has its first bearish engulfing candle in a while and I did tweet that I sold around $329.50. After this move from $310, some digestion makes sense. Look for banks to be in play on fed day as JPM had a nice 2 day move. If it is able to hold the $92 area, I will be looking for it to make a move towards all-time highs in the days ahead.
Continue Reading -->US Dollar – Nailed It! What’s Next?
Last week I talked about why the CPI report was not the main reason for the dollar decline and that we would see continued follow through lower. In this video I discuss: What to expect now that the target area has been reached A look forward to how the FOMC may impact the dollar next week Why price may be headed to test the 2011 low
Continue Reading -->Why I Am Betting on a Big Spike in the VIX
Traders are too bullish. Seriously. I typically start this report by saying that “permabears always say everyone’s bullish.” They’re wrong 99% of the time. Today is that 1% of the time when they’re right. Let’s go through our 5 sentiment indicators so you can see the numbers behind my reasoning. (click here for a primer on the 5 sentiment indicators below) 1) VIX Spread – Bullish The VIX hit 9.39 early Friday, putting it awfully close to the 9.37 generational low set back on June 9. That puts the 3-month spread up to 4.57, which means traders have very little fear of volatility. This is up from last week’s 4.0 reading, and qualifies as extremely bullish. (click here for a primer on the VIX spread) 2) CNN Fear & Greed Index – Bullish The Fear & Greed Index is at 76, up from 51 last week. The F&G Index operates on a 1-100 scale, and a reading of 76 qualifies as fairly greedy. This indicator has been subdued as of late, so I was a bit surprised to see it this high. 3) AAII Sentiment – Bullish The latest AAII Sentiment Survey shows that 35.5% of individual investors are bullish, up substantially from 28.2% last week. This 35.5% reading is basically inline with the 38.5% long-term average, and indicates that individual investors are basically neutral. This has been the case all year, even though the major indices have been hitting new all-time highs fairly regularly. 4) CBOE Equity Put-Call – Bullish The CBOE Equity-Put Call ratio was at 0.53 yesterday, which is a very bullish reading The 3-day moving average is 0.57, which is well below the long-term average. These numbers indicate that traders are very, very bullish. 5) ISE Sentiment – Bullish The ISE Sentiment Index is at 138 (meaning 138 calls bought for every 100 puts. The 10 day moving average is 105 (105 calls for every 100 puts) Now that 10-day moving average of 105 is technically neutral, I’ll count it as bullish because it’s been subdued for so long. The year-to-date average is just 87, so a 10-day moving average of 105 is a big change in trend. Conclusion Out of 5 sentiment indicators, we have: 4 bullish (up from 1 last week) 1 neutral (down from 3 0 bearish (down from 1) I troll the bears constantly for spreading the outright lie that everyone’s too bullish. But again, today, the bears are 100% correct. It’s not 1999 all over again, but still — traders are extraordinarily bullish, which can sometimes (but not always) mark a top. Remember, using sentiment indicators to time the market is often a fool’s game. But it’s not often that we see so many sentiment indicators pointing in the exact same direction. There is almost no fear and no volatility out there… which means we could be about to see a spike in fear and volatility. Now, let’s be clear: I am talking my book, and I freely admit that my positioning could impact my viewpoint. Earlier this week, I went long VIX call and I own VIX bull put spreads. I am speculating on a market decline that would spike the VIX, preferably over 17 within the next few weeks. And I may even add some SPY or QQQ puts. As we all know, the theme this year has been: Equities steadily grinding higher Volatility near zero Sentiment leaning mostly neutral I think things are about to change.
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