Investors who seek to hedge their portfolios by taking short positions in certain stocks have felt a huge amount of pain in recent quarters. As the S&P 500 is on track to… Read More
Active Trading
Adding to the bullish case are all of the sell signals that have failed to work. Prices have failed to heed the Hindenburg Omen and the Titanic Syndrome, among other bearish indicators. Even when signals don’t work as expected, they can still offer insights into the direction of the trend. Failed Sell Signals Are Bullish Jack Schwager interviewed some of the greatest traders in the world for his… Read More
Adding to the bullish case are all of the sell signals that have failed to work. Prices have failed to heed the Hindenburg Omen and the Titanic Syndrome, among other bearish indicators. Even when signals don’t work as expected, they can still offer insights into the direction of the trend. Failed Sell Signals Are Bullish Jack Schwager interviewed some of the greatest traders in the world for his Market Wizards books. In later writings, he distilled some of their best ideas into trading rules. Among his rules is that “a failed signal is more reliable than the original signal.”#-ad_banner-# This year, a number of sell signals have failed, and they could now be pointing toward additional gains for stocks. SPDR S&P 500 (NYSE: SPY) is up 15.3% since the beginning of the year, adding 1.27% last week. Considering just the… Read More
We all know the ancient Greek legend of the phoenix, a giant and beautiful bird that rises from its ashes, renewed and stronger than ever. A few high-tech companies have experienced this same phenomenon. Apple (Nasdaq: AAPL) immediately comes to mind. Innovations like the iPhone and iPad transformed Apple from… Read More
There are some indicators pointing to a possible top, but the weight of the evidence is not saying it’s time to sell. Traders should, however, start getting more cautious and move their stops closer to current prices. There are always a number of factors… Read More
It was late October 2008, and we were in the midst of one of the worst bear markets of all time. Short-biased traders were making a killing, but most of us bulls were getting hit daily. As a professional proprietary trader, my software… Read More
In recent years, the phrase “seeking alpha” has come into vogue. This refers to the ability of a portfolio to outperform the broader market or a related set of benchmarks. Yet in light of the market’s choppy start… Read More
Defensive stocks are always popular among conservative investors. These are stocks that are believed to have some degree of immunity to the business cycle. Consumer staples are favorites of defensive investors… Read More
Widely known as a corporate raider and activist investor, Carl Icahn views himself as a classic value investor. His company describes the Icahn strategy in simple terms: “We seek to find undervalued companies in the Graham & Dodd tradition. However, while the typical Graham… Read More
Many of the top hedge fund managers on Wall Street have written books, sharing with readers stories and broad ideas about their investing philosophy, but there’s one Wall Street titan I like to follow that has gone a step further. This man has shared the methods and research-driven strategies he’s used to climb to the top of the hedge fund world. And I think investors could learn a thing or two from what’s made him so successful. I’m talking about trading using Toby… Read More
Many of the top hedge fund managers on Wall Street have written books, sharing with readers stories and broad ideas about their investing philosophy, but there’s one Wall Street titan I like to follow that has gone a step further. This man has shared the methods and research-driven strategies he’s used to climb to the top of the hedge fund world. And I think investors could learn a thing or two from what’s made him so successful. I’m talking about trading using Toby Crabel’s secrets. He’s a well-known hedge fund manager of Crabel Capital Management, which has more than $3 billion in assets under management.#-ad_banner-# Crabel’s book, “Day Trading With Short Term Price Patterns and Opening Range Breakouts,” was written before he found success, but it contains several highly effective methods still used today. This book is no longer in print — the remaining copies can sell for more than $1,000 when it rarely appears on eBay. Personally, I have learned a great deal from Crabel’s book. Read More
In the late 1990s, a furious bull market led to a great deal of pain among professional short sellers. In fact, several high-profile investment firms that actively focused on short selling were… Read More