Hope is Not a Strategy

I learned an important lesson from trading this year: hope is not a strategy. If you enter a trade that goes against you, and it keeps going against you, hoping that the position will recover is a losing strategy. The hope trade may work once, twice, even ten times in … Read more

Two Retail CEOs Seek to Turn Their Companies Around

The companies are Gap and Barnes & Noble. Both have recently hired CEOs tasked with turning the businesses around. Gap Gap’s recently reported Q3 2023 earnings results surprised Wall Street analysts and the stock jumped 15% in after-hours trading. As the Wall Street Journal reports: Gap reported that comparable sales … Read more

A Hybrid or Electric Future?

According to a recent New York Times “The Daily” podcast episode, in 2023 we are on track for 1 million electric vehicles purchased, which is about 1 out of every 10 cars sold in the US. And yet the rate of increase in EV sales in the US went down … Read more

Nasdaq Futures Analysis: Trending Days

I define a trending day as a day in which the Daily candle for an NQ futures contract has a range of greater than 300 points. A daily candle’s points range is measured as the difference between the high and low values occurring between 18:00 to 17:00. 68 Daily Candles … Read more

Nasdaq 100 Futures Chart I am watching this week

The NQ futures contract in this 1h chart is approaching an important down trendline this week. The level is around 15250. Overall the NQ 1h chart is in a downtrend, with well defined lower highs and lower lows. If this hourly downtrend is to remain in tact, a rejection of … Read more

Magnificent Seven PE Ratios vs Industry and S&P 500

The P/E Ratio is a baseline Fundamental analysis metric to assess how a stock is currently priced compared to its counterparts and historical prices. It can be used to answer the question: is this stock on sale? Here are the current TTM P/E ratios for the Magnificent Seven stocks: Ticker … Read more

David Rosenberg on the Macro, Rates, Recession

This week the FOMC decided to hold the target interest rate steady at 525-550. Fed Funds Futures pricing data currently have a 95.2% probability that the Fed hold this interest rate level at the Dec 13 Fed meeting. And there is a 49.8% probability that the first 25 basis point … Read more