Market Insights
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Have Biotechs Broken Their Downtrend?
Biotechnology stocks have struggled this year along with the broader health-care sector, but some traders may think a bullish turn has begun.
Margins, Pricing, Demand: The Stars Line Up for Automakers as Tesla Joins the ‘Big Three’
If there's one message from this month's earnings reports, it could be that "automakers are back." A powerful combination of forces seems to be lining up for companies like Tesla (TSLA), General Motors (GM) and Ford Motor (GM): Tight supply and broad demandImproving...
This Week’s Altair Upgrade Moves Ethereum Closer to Proof of Stake and Supply Scarcity
Ethereum is taking a step this week toward the elusive "proof of stake" model, which promises faster processing times and greater scarcity. The so-called Altair upgrade will take effect on Wednesday morning on Ethereum's beacon chain. That's the parallel system...
Megacaps Report This Week, But Small Caps Could Be Nearing a Breakout
Giant Nasdaq stocks like Apple and Amazon.com report earnings this week, but another corner of the market could deserve some attention. The Russell 2000 ETF (IWM) has made a series of higher lows since mid-August. Some chart watchers may consider that a bullish...
Technical Analysis: This Data Storage Company Is Breaking Its Downtrend
Seagate Technology has spent the last five months pulling back. But now it may be turning around. The main pattern on today's chart is the descending trendline that started in May and ran along the peaks of August and September. Notice how STX closed above that line...
Stocks Bounced Last Week, But Can They Overcome These Two Risks?
Stocks bounced again last week, but two potential risks may challenge investors. The S&P 500 rose 1.6 percent between Friday, October 15, and Friday, October 22. It was the third straight weekly gain following a sharp drop earlier in the month. The rebound brought...
Tesla and the VIX: Two Big Numbers Reached in Today’s Session
Tesla and Cboe's volatility index -- the "fear gauge" -- closed at two important levels today. First, Elon Musk's electric-car maker ended the session at $893. That's slightly below the all-time record of $900.40 early this year. However it was the highest closing...
Technology & Communication
Chart of the Day: Is it Prime Time for Amazon.com?
Amazon.com has retraced almost all of its pandemic gains. Is this an opportunity for buyers? Let's consider some chart patterns. First is the $101.79 level (split adjusted). It was a peak in July 2019 and a breakout area immediately before the coronavirus selloff in...
How Time Was Money on Tech Earnings: Winning Trade in Apple
Earlier this week, we outlined a potential options trade on Apple (AAPL) before earnings. That strategy hit maximum profit this morning after strong results sent the tech giant to a new all-time high. Let's take a look with TradeStation's OptionStation Pro. The green...
Big Tech De-fangs the SPY: July at TradeStation
FANG ruled the roost in this month as volatility swept the Nasdaq. The two busiest stocks for TradeStation clients in July were members of the high-tech quartet: Facebook (FB) and Netflix (NFLX). Both crashed from record highs after mediocre quarterly reports raised...
Buyers Rotate into These Sectors as Tech Stalls
Last week was rough for technology. But now investors are looking for gains in some new areas. The SPDR Industrial ETF (XLI) and SPDR Health Care ETF (XLV) are the two best performing sector funds over the last month with gains of about 7 percent each. XLI is also on...
Know Your Options: Diagonal Spread Targets Apple Volatility Crush
One of the most predictable things in the market is time decay after a big event like earnings. Have you ever used a diagonal spread to capitalize on the change? Today we'll see how it's done. First, remember that option premiums attempt to factor in price swings. As...