New tastylive research indicates that investors and traders may want to tread cautiously when attempting to “buy the dip”—especially during periods of elevated volatility in the financial markets
A correction in the cryptocurrency sector has seen Bitcoin prices drop below key support levels, which could mobilize contrarian investors and traders betting on a big reversal.
The management of directional risk is key when trading the financial markets Accurately predicting price direction in the financial markets isn’t an easy proposition, especially in short-term situations. In fact, numerous market studies suggest that picking direction correctly in the near term has about a 50-50 likelihood of success. That’s why many market participants choose … Continued
In finance, mean reversion describes the tendency of asset prices to move toward their average, over time. A mean reversion-based trade therefore expresses the belief that an asset has deviated too far from its real value—or at least from its mean price—and that opportunities for profit exist when reversion to the mean occurs. Contrarians, whether … Continued
Whether you’re trading equities, bonds, or commodities (or all three), there’s been a plethora of good opportunities to add currencies to the portfolio during the month of August.. And with volatility spiking in all of those markets, it’s likely traders have added at least a few new short premium positions in the last couple weeks—especially … Continued
While cryptocurrencies have become synonymous with extreme volatility, the year 2019 has seen many “old school” trading products see a noticeable uptick in daily movement. At the top of this list, in terms of shock value, has been the increasing volatility exhibited in many agricultural commodities, like soybeans, wheat, and corn. Agricultural products such as … Continued
When President Donald Trump first levied tariffs on steel imports (to the tune of 25%) in March 2018, it’s doubtful his intent was to reduce the enterprise values of American steel companies, nor to watch the underlying price of steel spiral lower. However, checking in on the state of the American steel industry in July … Continued
Based on the behavior of the S&P 500 in the last 6-7 months, there are two big stories that will likely continue to dictate market direction through the remainder of 2019 (and possibly beyond). The two biggest current news stories in the financial markets are the U.S.-China trade war and developments related to U.S. Federal … Continued
Gold and silver prices have traditionally been so locked at the hip that if they were represented in a modern-day relationship, they’d undoubtedly be that couple that goes on holiday wearing “his and her” matching outfits. Interestingly, the trading behavior of these two metals so far in 2019 seems to suggest a breakup may have … Continued