Mean Reversion

Respecting the tendency of some securities prices to return to their long-term mean is an essential trading strategy. While hype can inflate markets like hot air in a balloon, prices tend to return to Earth at a moment that’s notoriously difficult to forecast. Conversely, underpriced stocks often regain the value they’ve lost. These are reasons … Continued

A Prognostication Tool

Standard deviations can help predict the price of futures anytime between listing and expiration Futures contracts lock in the price of a commodity or index. The former can include oil, gold, soybeans or wheat, while the latter can include the S&P 500, U.S. Treasury Bond yields or foreign exchange rates. By design, futures eventually settle … Continued

Big Moves in Small Bonds

Talking heads were so taken with the price appreciation of bitcoin that they missed the impressive move in interest rates Experts often disparage bonds as a second-rate asset class because they’re not as relatable as Apple (AAPL) or as flashy as bitcoin. But bonds have recently presented some opportunities and may continue to make waves as … Continued

Cryptocurrency Futures

Digital assets have gone legit with regulated futures contracts, brokerage firm spot trading and company IPOs  It’s not often that a new asset class is born, but it’s happening with cryptocurrency. Not long ago, the more successful cryptos were still developing spot markets within the walls of offshore exchanges and decentralized protocols. Now, they’ve combined … Continued

Lighting up Cannabis Futures

Bullish or bearish, most traders have an opinion on pot stocks, and those opinions have manifested themselves in the volatility of the prices. Tilray Inc. (TLRY), for example, has seen prices as low as $2.50 and as high as $215 in its short three-year lifetime on public markets. It’s currently trading for roughly $15. While … Continued

Betting on the Fed

Incorporating spread trades into a portfolio can open a whole world of opportunity   The once-sleepy interest rate environment is starting to awaken after a recent Federal Open Market Committee meeting. Following the Fed’s announcement at that gathering,  U.S. 2-Year Treasury Yields jumped from 0.15% to 0.25% in a matter of days and then remained  … Continued

The Futures of Technology

A new futures product helps investors balance exposure to tech stocks The line between retailing and technology has blurred. Who can decide whether to call Amazon a retailer or a tech company? What about Target? In certain cities, Amazon offers in-person shopping while e-commerce represents almost a fifth of Target’s revenue. But classifications aside, the … Continued

YOLO Fever

Buy stock in multiple companies to increase the chance of picking a winner and lessen the pain of choosing a loser

Short Side of the Moon

Feeling bearish? Options and futures can beat short-selling. Here’s how. There’s something suave about shorting the market, whether it’s fading an earnings pop, selling a pandemic rally or jumping into a long squeeze. It’s risky, contrarian and sometimes highly profitable. As the adage goes, markets take the stairs up and the elevator down. While short-selling … Continued

Tips for Trading Microchips

Semiconductor stocks offer high volatility and extraordinary liquidity Tech stocks were the market to buy in 2020. While Covid-19 crippled many sectors, technology stocks bloomed with a 40% rally from the start of 2020 to the beginning of this year. (See Active market, big potential, below). But “technology” has become a catch-all term, so let’s … Continued