Painful Pullback Not in Top 10 over Last 5 Years
Good Morning. Even though this pullback feels painful (as all do), there have been 10 pullbacks larger than this one since 2009 so the market is nowhere near as extreme as what the past 5 years has seen. Overall the US markets are oversold but short-term they are not at extremes. Most of the major […]
How to Start Trading Options Quantitatively
Gain a solid foundation on the fundamentals of options and learn just what they are, the two types of options, the pricing of options, and some basic trading strategies.
Overall Health of Global Markets Deteriorated
Good Morning. The market is now short term oversold. The overall health of global markets have deteriorated as we’ve discussed since the beginning of the year. The last stand for the US is it’s still above the 200 day ma technically holding its bull market status. Long side entries in US indices are viable here […]
Learn How to Professionally Trade Options with Larry Connors
At the upcoming Quantified Options Trading Strategies Summit 2014 Larry Connors and the Connors Research team will be teaching a comprehensive program of options trading strategies. You’ll learn how to identify and trade high probability options setups in 4 distinct sections: Quantified Strategies to Buy and Sell SPY Options and Other Liquid ETF Options Applying […]
A Dozen ETFs With Exposure to Europe Start the Week Oversold
European inflation came in lower than expected on Friday triggering a selloff in the Euro and European stock markets. Traders are concerned that low inflation threatens the fragile economic recovery. In the past, European Central Bank President Mario Draghi has promised to do whatever is necessary to defend the Euro. Traders will be watching closely […]
Sugar Coated January Returns
Good Morning. The market is now back to short-term neutral territory. A healthy bull market would have held the intra-day gains yesterday and closed near its highs but a higher close is a step in the right direction. With today being the last day of the month, the historical bias is to the upside to […]
Retail Sector Selloff Could Be Nearing an End
Yesterday, electronics retailer hhgregg, Inc. (NYSE: HGG) announced fourth quarter results that disappointed investors and the stock fell 19.32%. Competitor Best Buy (NYSE: BBY) also sold off and fell 5.21%. HHG and BBY are now both oversold with PowerRatings of 8. PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The […]
Scale-In Strategy Could Benefit From Market Weakness
ETFs tracking all major stock market averages except PowerShares QQQ (NASDAQ: QQQ) are oversold with PowerRatings of 9 or 10. Oversold markets can become more oversold and there is no way to tell when a selloff will end. In markets like this, a scale-in strategy as explained in the Connors Research Guidebook ETF Scale-In Strategy, […]
The Word Here is Caution
Good Morning. In my Daily Battle Plan for Wed Jan 29, I mentioned that in normal bull markets, days like Tuesday are followed by higher prices whereas in bear markets they reverse quickly. Even though SPY is still about six points from breaking under its 200 day ma, the behavior in the US is looking […]
Stock Market Still Oversold Despite One-Day Rally
Major stock market averages rallied yesterday but ended the day oversold according to PowerRatings. SPDR Dow Jones Industrial Average (NYSE: DIA) gained 0.58% yesterday and ProShares UltraPro Dow30 (NYSE: UDOW) was up 1.54%. Both start trading today with a PowerRatings of 9. SPDR S&P 500 (NYSE: SPY) was up 0.60% but is still oversold with […]
Market Shrugs Off Apple
Good Morning. As was mentioned yesterday, the probabilities of a short-term rally were high due to the oversold conditions along with the month end upward bias. It was good to also see the market shrugging off Apple’s earnings. The key now is the follow through. Normal bull markets follow through from days like yesterday. Bear […]
Improve Your ETF Trading with Win Rates Over 90%
As we continue to explore new research possibilities with ConnorsRSI we continue to find that incorporating this indicator into trading setups can deliver extraordinary results. Connors Research has recently developed a new strategy with ConnorsRSI that has delivered historic win rates of greater than 90% on over a dozen variations. Along with a high probability […]