The covered call strategy has some tremendous benefits. It allows us to boost the amount of income we receive from our investment portfolio, while also helping to protect our investments from losses if stocks trade moderately lower.#-ad_banner-#However, the strategy has one primary drawback. If the underlying stock that we own moves dramatically higher, our gains are capped. This is because […]
Dow Industrials Stock Market Top in Place?Stock-Markets / Stock Markets 2014Feb 10, 2014 – 07:02 PM GMTBy: WavePatternTraders
To answer that question truthfully, it’s way too early to confirm the answer to that question. I have posted previously there is still a bullish wave count that suggests a possible move to 14000 before it moves higher […]
As big data has evolved beyond buzzword status to become a substantive force that is helping business, government and individuals gain helpful insights, the issue of data privacy has moved to the forefront. While the quest for insight has rarely been stronger or more necessary, concern over protecting the privacy interests of individuals has given many parties pause.Looking at health […]
One well-accepted gauge of “fear” in the market is the VIX. The VIX typically rises in times of market distress as options traders hedge their positions, thereby causing an increase in the price of implied volatility – leading to a rise in the VIX. Popular ETFs such as VXX are constructed to replicate the value of the VIX. Hence, a […]
With continued chaos around the world and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, has issued a a major warning that the stock market is now on the “edge of a crash.”Russell: “As I write, fiat currencies around the world are […]
One problem with stock market rallies that are characterized by steep and uninterrupted ascents, such as the one experienced during 2013, is that once a sell-off commences it becomes difficult to pinpoint price levels at which the declines in broad equity indices such as the S&P 500 (SPY) may run their course.In this article, I will briefly review the factors […]
Now that January has disappointed, market forecasts for 2014 have become less favorable (i.e. “January Effect”). Last month I forecast a 16% loss in 2014 while others were forecasting gains. I’m not saying “I told you so” but I would like to add some more justification for my prediction.As shown in the next graph, Wall Street is forecasting gains of […]
Today, I’m going to let you in on one of the market’s best-kept secrets…#-ad_banner-#It turns out investors are willing to pay you to sell stocks you already own at a profit. You read that right.And you want to know the funny thing? Often, you don’t even end up having to sell the shares. You simply take other guy’s money. And […]
Facebook (FB), the social media giant, reports after the closing bell on Wednesday, January 29th, 2014. Analyst consensus per ThomsonReuters is currently expecting $0.27 in earnings per share (EPS) on $2.32 billion in revenues, for expected year-over-year growth of 59% and 92% respectively.Exiting the October ’13 quarter’s report, the consensus EPS and revenue estimates were for $0.22 and $2.2 billion […]
When I first offered a warning to investors on New Year’s Eve, it was not plainly obvious what was about to happen. Today, pundits are pulling out every possible excuse for why stocks are getting trashed. It’s not at all because of Turkey or Argentina, but the fringes of risk, including emerging markets, are instead feeling it now because of […]
