When a stock or commodity gaps higher on positive news and then reverses, it is an immediate short sale candidate near the previous days high. This is known as a “news reversal,” and it captures that century-old Wall Street strategy that if it doesnt go up on good news, it’s go
Most of us know Wayne Rogers as Trapper John McIntyre from M*A*S*H. What many people do not know is that Wayne is also a long-time money manager and a graduate of Princeton University. I first learned that Wayne was an investment advisor more than a decade ago when I was working at DLJ and would see
Many times, when markets experience extremely high volatility they then proceed to trade sideways as volatility reverts to its mean.
As you know, when short-term volatility is one half or less than its normalized longer-term volatility, it signifies a pending large market move.
Looking for low-volatility setups in high volatility stocks can be a good way to identify stocks that move 40% in a week.
One of the better ways to get an edge trading low-volatility situations is to combine them with the trend.
Today’s volatility column is brief and will help you identify the few times when low-volatility situations do not lead to large moves.
Shorter-term market volatility levels tend to revert to longer-term volatility levels. This basically means that after markets go through a few days of craziness, they become more quiet.
One of the better ways to position yourself near the close for tomorrow’s opening is with the VIX. I have found that large intraday moves in the VIX tend to follow through into the next trading day and can be used to predict the market’s open.
One of the better ways to position yourself near the close for tomorrowGÇÖs opening is with the VIX. I have found that large intraday moves in the VIX tend to follow through into the next trading day and can be used to predict the marketGÇÖs open.