Neither Here Nor There (QQQ,TLT,FB,IEF,SPY)

bs’d Neither Here Nor There (QQQ,TLT,FB,IEF,SPY) It happens all the time. The Mrs. goes out to buy some fish for Friday, and the boys and I are left lunchless, waiting all afternoon for the car to pull into the driveway. Sheesh. Not that we object to her having a few hours with Meave down at the Brutus Café on Plympton St. And I can certainly whip up a round of tomato, mayo and cheese sandwiches that the lads are downright fond of… But in the meanwhile, we still get to worrying. Oh, she’s never delayed too long – and certainly the habit is so common now that we should have faith that all’s well, and…

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Getting Carried Away (SPY,IEF,PFE)

Getting Carried Away (SPY,IEF,PFE)   There’s a concept in statistics that’s regularly applied to markets called ‘mean reversion’.  It’s a rather simple idea, that anytime numbers get too far stretched from their long-term historical norms – either too high or too low – they eventually snap back.   And it has proven itself long enough to be relied upon by market analysts for at least a half century.  Simply put – a market is in danger of a whiplash reversal when it strays too far from its mean.  Forewarned is forearmed. The only problem with the concept is that no one can know what any security’s ultimate breaking point is.   That is, how long…

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Saltpeter Rising (AOBC,AAPL,IEF,OSX)

It’s shaping up to be one weird summer.   Consider what our fellow Norman, Hugh L. O’Haynew, wrote last week about the market’s ‘fear gauge’, the VIX. And whaddaya know, last week the damned thing fell to 9.37, just spitting distance from her all-time low of 9.31 back in December of 1993.   As for volatility compression, of which Hugh spoke at length, we still haven’t seen anything noteworthy, though that doesn’t mean a meaningful decline has been avoided.  Everything is still possible.   Including War?   Now, we don’t like to get caught up in hysterics.  And the media is good at nothing if not that: working up folks into a lather – as,…

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Best Be Bond Bound (IEF,AAPL)

Best Be Bond Bound (IEF,AAPL)   We’ve been surprised by action in the bond market of late, where an upward trend appears not only in the making, but at a time when rates are beginning to ratchet higher and the stock market has gotten some traction, one would think that Treasuries had little hope.   Not so.   In fact, before we get to the actual charts, consider a number of fascinating bond market data from the last couple of weeks.   To begin, we are now witnessing the largest short squeeze in the Treasury market since the world was created.   Look here – Better than $25 billion in Ten Year short futures have…

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Santa’s Good to the Elite (XOM)

We set a lot of trades here at Options Trader Elite. Roughly once a week – and sometimes more – we set a trade that’s the envy of the newsletter world, both in terms of its return and its sheer entertainment value. There, there, Rachel… take your Zoloft, my love. As it turns out, we very often set trades with December expiries. Not exactly sure why, but it just happens to work out that way. And so it was with last Friday’s options expiry, that we now have a bevy of initiatives that either closed down, or that we feel it’s now appropriate to take off the table. And so, without further delay, we ask…

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New Wild West Strategy for Bonds (IEF, GLD, SPX)

Last week we told all gold holders to get the hell out of Dodge, and we brought along plenty of chart pudding to prove that we weren’t jiving. This week, whaddaya know, we find out the whole damn world was listening, because not only did the entire precious metals complex fast-track it to Hades, but even the hedge funds decided it was time to bail. As BusinessWeek tells us here, hedge funds have been closing their long gold bets for a full month now, bringing open interest on the COMEX down to a five-year low. Holdings in gold ETFs have also slumped, dropping for the fourth time in five months, while short futures positions on…

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