Trading in a government sponsored market bubble

The rally’s speed has left savvy investors in a quandary. While few are willing to bet against a rebound that has steam-rolled most forecasts, we are concerned the market has become detached from economic reality by expectations of unlimited support from the Federal Reserve and U.S. lawmakers. We are not fundamentalist in our rules of trading. But this market has …

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Trading during a recession period

This pandemic is likely going to be the most disruptive financial and social event in decades. The financial wealth decline will have a major impact on consumer spending globally. The restrain on spending in future years to rebuild savings, especially since the crisis caught a lot of middle-income families at a time of high debts and low savings. We are …

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The current stock market isn’t correctly pricing in the economic deterioration

The unprecedented actions by the Federal Reserve and other central banks are helping to keep investors numb for now. This is the first consumer and labor market down-cycle in 11 years. The consensus view still appears to be a quick recovery, but recessions tend to linger far longer. It took equities on average 18 months to record the final low …

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Trading must go on, long or short

In order to feel confident that the stock market fundamentally has found a bottom, three criteria must be met: The viral spread in the United States must begin to slow, so that the ultimate economic impact of the virus and containment efforts can be understood. There must be evidence that extraordinary measures taken by the Federal Reserve and Congress to …

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The purging has only just begun

The 2020 meltdown has already earned a spot amid those high-water marks. In fact, it’s already in a league of its own. Don’t bet on a V-shaped rebound once the stock market’s coronavirus-driven plunge finally hits bottom. Before the market can get on the road to recovery, the current bear market needs to run its course. The average S&P 500 …

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Equity Market haven’t bottomed yet

We don’t think today’s rally of 1000 plus points in Dow is the turn around. Choppy markets and investors getting whipsawed is the way of trading for now. Professional day-traders are having a blast. Last month global Covid9 outbreak ended the market’s old “buy-the-dip” dynamic. Then on Monday, crude oil price war between Russia and Saudi tanked the markets and …

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High valuations, and overdue market correction

This sell-off has more to do with overvaluation than the economic impact of coronavirus. There is a much wider set of anxieties around stock prices. The virus fears will have longer-term economic impact due to china’s slowdown. But for now, we are focused on taking advantage of a long position and exploiting and taking advantage of the herd running for …

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Market is presently in an undecided position

At ETF Trade Advisor we constantly run our algorithms and use our trading experience of over 30 years to find entry and exit positions and to set risk control stop prices. Last week we were getting ready to enter into short positions, but we were not getting sufficient confirmation and, rightly so. This week market is undecided, and it keeps …

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Our most recent results for SPY and SSO

Symbol Position Signal Date Initial Stop Price Final Stop Price Entry Date Entry Price Exit/Stop Date Exit/Stop Price Gain/Loss $ Gain/Loss % Cumulative Gain $ Cumulative Gain % SSO LONG 10/29/2019 $130.50 $140.00 10/30/2019 $133.77 11/20/2019 $140.00 $6.23 4.66% $1,545,980.42 15359.8% SPY LONG 10/29/2019 $299.70 $310.50 10/30/2019 $303.43 11/20/2019 $310.50 $7.07 2.33% $172,408.19 1624.08% SPY LONG 10/17/2019 $295.00 $298.65 10/18/2019 …

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Riding this Bucking Bronco

This volatile market is like riding the bucking bronco! No matter how much volatility, we cannot ignore the trend and, we are prepared to ride it, all be it keep focus on any signs of turn around. That’s our goal for our members and our own money, to ride the trend for as long as it lasts. The S&P 500, …

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