A Closer Look at the VIX

A Closer Look at the VIX

The Volatility Index (VIX) is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market. When sentiment reaches one extreme or the other, the market typically reverses course seeking equilibrium. What is volatility?...
Understanding Your Options Chain

Understanding Your Options Chain

If you are going to trade stock options, one of the most important tools is the Option Chain.  The COUNTLESS values in the Option Chain can make it look intimidating, but luckily there are only a few key numbers that matter. BID and ASK are the price points that you...
Learn to Dance with Market Volatility

Learn to Dance with Market Volatility

How do we as traders learn how to dance with the market especially when high volatility comes into play? Everyone is talking about volatility and no wonder with the market swings of 500 points or 1000 points in a single day. Volatility is measured in numerous ways. *...
MMMMMMMMMs and WWWWWWWWs

MMMMMMMMMs and WWWWWWWWs

Funny what your mind locks onto.  I had the privilege of watching two charts and saw patterns setting up.  I saw an “M” and a “W” so I drew my line at the neckline and waited patiently for a break of the neckline to time a good entry. I watched...
Trading the magic of 100

Trading the magic of 100

Stocks, indices, currencies, and futures tend to have a magic area at the 100, 200, 600, 9300, 12000 and so on levels.  If you can divide the current market value by 100, you have the next magical level. Why is this?  Is there a gold medal behind these nice round...