Market Insights
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Key Points About Selling Credit Spreads
A previous post covered debit spreads, when you pay a debit looking for a stock or ETF to move in a certain direction. Credit spreads are just the opposite, with traders collecting premium up front in hope that the stock won’t move a certain way. What a...
Ethereum Shakes Off Bitcoin Crash as Investors Focus on Positives in July
Cryptocurrencies fell last month as investors dumped Bitcoin. But now attention could be shifting to Ethereum as a greener alternative. The No. 2 digital asset by market capitalization has already regained the levels where it began May. It's also emphasizing a key...
Reopening Stocks Surge Back as the Post-Covid Summer Begins
The reopening trade is surging back as the summer vacation season begins and coronavirus infections plummet. Investors piled into stocks like energy, cruise lines and casinos on Tuesday. Those stand to gain from increased travel and economic activity as social...
Small Caps Are Outperforming Again: Technical Analysis
QQQ vs IWM? In some ways, it’s the big debate of 2021. Will traders stick with megacap growth stocks, or ride fast-moving small caps as the economy reopens? Or will they simply rotate between the two, guided by events and price action? Right now could be a time when a...
Junior Nasdaq Beating QQQ Again as Low Volatility Draws Risk Takers Away From Apple
Big-cap technology stocks like Apple are lagging again, even as investors start buying smaller companies on the Nasdaq. The chart below compares the Invesco Nasdaq Next Gen ETF (QQQJ) with the Invesco QQQ (QQQ). It shows percentage change, with hourly bars, since the...
Options Activity Is Rising in ‘Meme’ Stocks Like AMC and GameStop
Heavily shorted stocks like AMC exploded higher in January. Now they may be moving again, with options traders jumping on board. The theater chain rallied 19 percent yesterday, following a 20 percent gain on Tuesday. AMC is up 62 percent since last Friday, its biggest...
Tesla’s Stock Is Holding Support as Relative Strength Turns Positive
After months of weakness, Tesla may be charged for another move to the upside. Some interesting patterns have recently appeared on the electric-car maker's chart. First is the false breakdown below $550 on May 19. This was followed by a rebound back above the ... For...
Technology & Communication
Toast and Freshworks: Two New Disruptors Pull Back After Scorching IPOs
Initial public offerings (IPOs) have been going strong as a series of disruptive technology firms hit the market. Two prominent names have pulled back sharply following big rallies last week: Toast (TOST) and Freshworks (FRSH). TOST is a nine-year old provider of...
Wall Street Not Abandoning Netflix After Drop: Research Recap
Wall Street was thick with analyst notes on Netflix (NFLX) yesterday after the streaming-media darling fell on weak subscriber growth. The research was surprisingly positive given the news. Here's a summary of a few big takeaways. First, some analysts tried to cast...
Monster Options Volume in New Media Darling
Love it? Hate it? Trade it! That's the story today in Netflix (NFLX). The new-media darling cratered this morning on news of weak subscriber growth, before clawing back most of its losses. Analysts were all over the map in response, with some cutting estimates and...
Cyclicals Lead as Stocks Climb Wall of Worry
Stocks kept climbing last week, with higher-risk sectors leading the charge. The S&P 500 rose 1.5 percent between Friday, July 6, and Friday, July 13, to close at its highest level since February 1. The Nasdaq-100 surged even more into new record territory....
PCs Rebound: Are Dinosaurs Rising in Tech?
This week saw surprising news for the technology sector. PCs are growing again. Yesterday, two major research firms both announced that PC shipments rose in the second quarter for the first time in six years. IDC reported a gain of 2.7 percent year-over-year, crushing...