All Posts by Mike

Riots Rally

A day or two ago I was cruising around on reddit as I am subscribed to a few hobby related groups as well as some related to crypto currencies. To be honest I haven’t been dabbling much in crypto since early last year but it’s always good to keep one’s ear to the ground, as they say.

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  • Mike
  • last year

Retain Your Sanity

I have always refrained from commenting about politics as there are a myriad of sources out there plus I generally deem it to be counter productive to our mission at hand. Which of course is to succeed as traders in the financial markets – period. As such today will be no exception. But watching events in Minneapolis and other U.S. cities unfold over the weekend I could not help but feel a growing sense of surrealism above anything else.

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  • Mike
  • last year

Do The Corona Dance

If there was ever a valuable lesson to be learned about the utility of the mainstream media in the context of trading the financial markets, then the global Corona train wreck will undoubtedly be recognized by future generations of traders as a textbook example.

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  • Mike
  • last year

The Slow Churn

In German we have an expression: ‘Vom Regen in die Traufe’, which loosely translates as ‘from the frying pan into the fire’ – you get the idea. Looking at the insanity we just left behind and exchanged for a prolonged sideways churn across almost every market vertical I’d say either expression applies.

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  • Mike
  • last year

A Few More For The Road

Unbeknownst to most retail rats a fight is taking place in the equities market, and it revolves around an exotic concept only known to a select few in the options trading world. I’m speaking of course about the weekly expected move, and what makes it so important is the fact that much of what drives stock markets these days is driven by the options market. How so? Let me explain.

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  • Mike
  • last year

Rope-A-Dope

Imagine my surprise when equities melted higher throughout yesterday’s session, then sold off most of it in the last 30 minutes, only to gain it all back overnight? No you’re right – it wasn’t much of a surprise, especially after the big players showed their hands late last week by seeding the financial MSM with bearish opinion pieces. That’s how the game is being played – and it’s got a name: the good ole’ rope-a-dope.

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  • Mike
  • last year

Bad News For Perma Bears

Everything I touch today seems to either be out of commission, requires maintenance, or repeatedly crashes. One of those U2 Mondays I guess, so after burning through two frustrating hours this going to be a pretty snappy post. That said – the two charts I was able to scrape together should be raising your eyebrows, especially if you’re bearish.

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  • Mike
  • last year

When Are We Again?

What a difference just three trading sessions can make. Here we were last Friday seemingly on course to exceed the April highs when suddenly the floor gave way on Monday morning and we sold off for three consecutive days. Of course the financial MSM didn’t miss a beat and immediately trotted out the likes of Stan Druckenmiller, David Tepper, and Jerome Powell who did their very best to jawbone this market lower. Are they right? Is this v-shaped recovery doomed to fail?

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  • Mike
  • last year

All Asleep On The Western Front

The market recovery over the past two months has been nothing short of miraculous. I’ve looked at a lot of historical wipe outs in my time and none of them even come close in regards to recovering lost territory and more importantly when it comes to the normalization of implied volatility.

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  • Mike
  • last year

Trading vs. Investing

With what’s been happening in the world the past 4 weeks, a lot of people are coming out of the wood work and smelling opportunity. As people who spend a great deal of time trading, Mike and I have an influx of texts, phone calls and e-mails from friends, family and clients about putting some long term capital to work.

The common theme I see among most casual investors is the confusion between trading and investing. The rules for each are much different and many trading rules do not apply to investing. Likewise, many investing rules do not apply to trading. Swapping these rules sets will get you the financial equivalent of prison raped while you have to hold the boom box blasting Air Supply.

Let’s look at the difference between the two and start with a great example of investing, Warren Buffet.

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  • Mike
  • last year