The Stock Market
The first round of our IV crush earnings plays was a resounding success and as there’s about a week’s worth of announcements left in this quarter we are pumped and ready for a second helping.
The next round of Operation Vega Crush begins
Photo via artcarcentral.com
Operation Volatility Crush – Post Mortem
[ed note: this is a follow-up to “Let’s Crush Some Volatility”, penned by the aptly named Ray the Options Executioner for the Evil Speculator]
Our introduction to earnings-based options strategies has started off with a bang. Actually, it’s hard to imagine a much better results for our first option campaigns. Granted, we’ve been doing this stuff behind the scenes for a while, and we expected the options strategies in FB and FSLR to succeed. Still, you gotta love when what happens is pretty much exactly what you predicted.
Photo credit: musictory.de
Searching for Victims
If like me you were a Monty Python addict back in the days then you are probably familiar with the phrase ‘And now for something completely different’. As you probably know we’re in the midst of Q2 earnings season right now, and Jay The Executioner in collaboration with yours truly has been on the hunt for potential IV crush victims.
Photo via gdefon.ru
Market Breadth Divergences
[ed note: readers not familiar with Frank’s trading system can look at an introductory article here: The Modified Davis Method]
Over the years I have developed a lot of respect for the condition of bearish breadth divergence, when an index such as the S&P 500 is rising and the NYSE daily cumulative advance-decline line is not.
NYSE advance decline line vs. NYSE index – currently breadth is strong, as many of the market’s previously weakest sectors (particularly commodity stocks, transportation stocks and industrials) have begun to rally strongly. However, tech stocks and other momentum favorites have begun to lag – click to enlarge.
The Largest Online Marketplace in the World
This company is twice the size of Enron at its peak ($100 billion). Pharmaceutical giant Valeant, which blew up in the last year, was only $90 billion at its peak. Before I get to what the stock is, let me tell you where it is: China.
I recently heard an excellent presentation by Anne Stevenson-Yang at Grant’s Spring Investment conference. Stevenson-Yang is the cofounder of J Capital Research, based in Hong Kong. J Cap provides independent research on China’s stocks and its economy.
CEO Jack Ma, wagging a finger (bad sign)
Photo credit: Kiyoshi Ota / Bloomberg
Dismal Earnings, Extreme Valuations
The current earnings season hasn’t been very good so far. Companies continue to “beat expectations” of course, but this is just a silly game. The stock market’s valuation is already between the highest and third highest in history depending on how it is measured.
Photo credit: Kjetil Ree
Volatility over the Long Term
No matter if you are a hard nosed trader or a casual investor, every once in a while it’s advisable to detach yourself from the daily grind, sit back, grab a hot beverage, and parse through some long term charts. Although the don’t affect our daily entries here at Evil Speculator, they do give us a better view of what type of market we are navigating and thus how we may have to adjust our trading patterns.
Image credit: Walt Disney Pictures
Everything Is Nonsense
If I had a world of my own, everything would be nonsense. Nothing would be what it is, because everything would be what it isn’t. And contrary wise, what is, it wouldn’t be. And what it wouldn’t be, it would. You see?
– Alice’s Adventures in Wonderland
A public service message from the Mad Hatter – bad news is bad. Ominous, even. Hat help us all!
Illustration credit: Bob Kane
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