Markets continue to go higher and we got entry signals for four more ETFs in our Almanac Trader portfolio. One can argue that in this upward moving markets trading on the sort side is not a good idea. However, trading is all about probabilities. If for any setup or strategy the probabilities to make profit…
The quarterly expiration of index futures, index options, stock futures and stock options cause big swings in the stock market. When options and futures contracts expire then traders can either “roll” the contracts to next one, buy or sell the underlying security or let contracts expire worthless. If traders decide to buy/sell underlying stocks then it…
Our strategy of trading the days surrounding the triple (or quad) witching Friday in June from the short side continues. Three more sector/market ETFs – SPY, QQQ and XLP – have generated entry signals. For S&P 500, you can go either short SPY, SPDR S&P 500 ETF Trust, or go long SDS, ProShares UltraShort S&P 500 ETF. For NASDAQ, you can go either…
The week following the triple-witching Friday in June has been historically weak. There is not a single up week following the triple-witching in June since 1998. It tends to be down in flat period and dramatically so during bear markets. Our entry/exit algorithm has generated the short-signal for technology and small-caps. For technology, you can go either…
June and summer are historically weak months for the stock market when the bears generally come out of hibernation. Some days – specifically the days surrounding the Triple-Witching Fridays – have somewhat more predictability that others. On Monday before the option expiration Friday, Dow Jones Industrial Averages have shown a tendency to weaken. Stock Trader’s Almanac…
Expiration of options and futures contracts increases the volatility leading to higher than normal trading volume. The volatility and volume are higher on the triple-witching days, which happen on the third Friday of the last month of a quarter. There are some distinct patterns prior to, during and following the triple-witching days. Patterns in June are even more predictable.…
So far the, in June the currency market has seen quite a few high-magnitude events. First was the ECB’s decision to cut the deposit rate to -0.1% from 0.0% on June 5th to counter the deflationary pressures in Euro Zone. No major central bank ever had a negative rate. ECB also reduced the Minimum Bid Rate to…
Yesterday, we alerted for a possible trade in our seasonal long British Pound in June strategy if the currency pair closes above previous day’s close. It did so our trade is one. For tracking purposes we will use the yesterday’s close. Go long GBP/USD at or near 1.67900. Three out of four entry strategy generated this…
A week ago, we wrote about going long in British Pound in June. The favorable time for this trade starts in early June. The price action of GBP/US pair tells us that this trade is getting ripe for getting into soon. We will watch it closely and if the entry signals are generated then will…
The market made all time highs on Monday June 9th, 2014. Early on Tuesday morning, S&P 500 futures are treading water – below 3 points. They have been underwater since yesterday’s close. Now, they seem to be making a quite turnaround. Overnight, Asian markets rose to three-year highs. Shanghai rose by +1.1%, Hong Kong by +0.9%, Seoul by…
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