Sell the Chip, Buy the Coke
Hi Traders, For my puts this week, I am going back to Nvidia (NVDA). Worked like a charm last week! I hope you all made money on that. I am going back for puts in NVDA because I am seeing a head and shoulders top (a chart pattern with three peaks, the middle one highest, […]
Why Did Monday’s Rally Fade So Fast?
Dear {$esp_first_name|default:Trader}, The bounce just told on itself. Monday's rally looked like relief after Friday's bloodbath. By Tuesday morning, the move was fading fast. The Nasdaq slipped red while the S&P drifted back toward 7,400, the level Garrett Baldwin, the host of I’d Trade That, calls "the line in the sand." I watched our State […]
5 to Love and 5 to Hate this AM
Dear Trader, This morning on State of the Market, five of our traders each put two names on the table: one they love, one they can't stand. Here's the tease before we say them out loud. Tim's love is a heavy-machinery workhorse that keeps freight rolling coast to coast. His hate is a fintech pioneer […]
The Ten Week Meltup Just Cracked
Dear Traders, I planned to introduce Garrett Baldwin to you slowly. The market had other ideas. This morning, the melt-up cracked. Ten weeks without a real down week, and the streak died in a single session. Garrett's momentum screen (a tool that tracks where the big money is actually moving) flipped off green. He is […]
What happens when the strongest market blinks
Dear trader, I want to tell you about a rule that has saved me more money than any other I've ever learned. That rule is coming into play right now as I navigate a window of opportunity I see for rotation in the markets. For the first decade of my career as an options trader […]
Licia’s two charts: the name to leave and the name to love
Dear trader, Money is quietly changing seats. The flashiest name in the market, the one every headline writer is obsessed with, just stalled out at the top and started slipping. Meanwhile the company your grandma shops at is bouncing off the floor like nothing happened. That is the whole story this week. The crowd is […]
The coiled spring behind the bad news
Hey, Charles here. Andrew came back from vacation with two names pulling in opposite directions, and the same lesson sits under both. The crowd reads the headline. Andrew reads what the options market is quietly doing underneath it. One is a stock everyone is writing off because a competitor just scored a win. The big […]
The flywheel Wall Street keeps missing
Dear Income traders, Something just changed. And most people missed it. We're entering a world where anyone can start a business in an afternoon. AI writes the code. AI builds the site. AI runs the back office. The cost of starting something just collapsed to almost nothing. Look at this chart from Torsten Sløk: New […]
The overnight trade two floor traders found by accident
On January 26th the CBOE quietly changed the options market. Two floor traders spent 90 days and real money uncovering the overnight edge they call the Tilt.
The casino is open. The mortgage office is closed.
Hey, Charles here. Tim is new to this column, but his read of the tape is anything but rookie. He spent the week watching the long end of the curve do something it has not done in a year. And he noticed that when the cost of money rips higher, the market splits in two. […]