SPY nearing major support levels.Let's see if Spy can continue to hold 61.8 Fib Retracement at 550! A break could see further downside to the 540 area.
SPY trade ideas
$SPY Possible simulation with COVID, Bottom at 495 then ATH 630Lowest RSI since COVID , highest daily volume for years! but if copy the wave of COVID drop we can see some similarities. bottom by 2nd week April at 495 then consolidation at 530 then up and fighting zone between 550-560 then up and small top on June/July then All time high in Sep at 630. the idea, take long dated strangles options
Tariff FUD is reking ports. SPY 505 First Stop. 460 Second.Trading Fam,
It's no surprise that Trump's implementation of high tariffs would cause initial FUD. This can be observed in the massive spikes on the $VIX. What is unknown and has caught many traders by surprise, myself included, is how substantial of a drop would be incurred by investor uncertainty.
Initially, it did appear that 500 might hold. That was a huge support. I knew if it broke, the sell-off would be deep. But I held hope that the market would hold above this trendline. It did not. So, yesterday and today, investors who held are incurring substantial losses.
For those who were smarter than me and sold at or near the top, congratulations! You've saved yourself some duress and cash. Now, some are calling this the beginning of a longer bear market. I still don't see it that way. Honestly (and I know this will be hard to believe), I still see the SPY hitting my target #3 at 670-700 before 2026 comes to an end. Longer-term we still remain in a massive secular bull market since 2009 and to break this long-term trend, the SPY would actually have to break below 300. That is a long way down and I just don't see that happening, though as always, I definitely could be wrong.
Shorter-term I am seeing two prominent areas of support. The first has almost been reached at 505. If I would have played this correctly, I'd be DCA'ing in my first load of cash here. The second area of support is at around 460 and slightly rising daily. This would be where I DCA'ed in another load of cash. However, if that broke, I'd exit immediately and reassess the charts. 300 is a long way down, but over the past 5 years we have seen some extraordinary market price action and volatility. TBH, even the best of us technicians are struggling to understand the larger macro-economic picture, but I'd wager to say that tariff fears may be overexaggerated as market reactions often tend to be.
One interesting note is that crypto price action no longer seems to correlate and prices have help up surprisingly well. Could this be our first indicator that the markets are due to turn up again in a few weeks/months? Unknown. But I can promise you I'll be watching this all closely.
✌️Stew
SPY LongSPY Long and Neutral
Down 9% in 2 days, near demand Zone,
Long entry 513
no Stop ,
Target 530
Risk management is much more important than a good entry point.
I am not a PRO trader.
In my trading plan, the Max Risk of each short term trade should be less than 1% of an account.
Sell SPY 250417 P500, Limit 11.31,
Delt= -0.37, expire in 13 days.
No stop, willing to buy SPY at 500 after 15% down from the top, for long term investment
SPY Update + Learn & Understand the concept below!!Red vs. Teal has been the storyline for this downward momentum and it continues to be as we saw a strong hold from (bullish) red earlier in the week and after rejecting off of teal yesterday, this subsequent gap down that we're currently seeing.
If we've built enough bearish liquidity utilizing our green controlled buying, we can see this dump penetrate this 547 support level and continue deeper with a mid-term target in the low $500's.
However, if sufficient liquidity hasn't been built, per the laws of S&D, we will need to continue higher for a bit to grab more sellers and soak up more buyers prior to that penetration.
Whenever the move seems too obvious in the market, expect it to look that way purposely and for it to be a trap. Get you to sell when it's so obviously bearish - and then the market pushes up as you realize that everyone who sold is the reason why it's going to now push up - big money will force you and the others to buy back your sells at a higher price/loss and that's where big money then swoops in, when things maybe started to look a bit bullish, and pushes the market down by selling back to you all your stop loss buys in one fell swoop!
Learn this concept, understand it, and your trading will change forever. That knowledge combined with an understanding of how the algorithms inform the market's liquidity, is why I draw so many lines on my chart.
Happy Trading :)
$SPY Bollinger Bands and RSI Oversold SignalThe AMEX:SPY aka S&P 500 is delivering a daily Bollinger Bands and RSI oversold signal today
In the last ten years there has been a bigger recovery shortly after such an signal
VISUAL INVESTOR: An Investing Tutorial for EveryoneToday is a wonderful day! I am overwhelmed with positive emotions, like a racer who has crossed the finish line. My first book, The Visual Investor, is out on TradingView. It's written for everyone, from those just starting out in the stock market to experienced investors. You could say you're holding it in your hands now.
The idea for this book came to me a long time ago, thanks to the influence of one person, as well as my invisible teachers: Benjamin Graham, Warren Buffett, Charles Munger, Peter Lynch and Mohnish Pabrai. Day after day, I worked on the content of chapters, charts, tables, and drawings to take you from theoretical foundations to applied knowledge that allows you to answer the key questions of any investor: What? When? And how much?
My motivators, namely you, dear subscribers and the TradingView editorial team, also made an invaluable contribution to the creation of this book. Every kind word, constructive criticism and award in the form of “Editors’ Picks” made me happier and helped me to create further.
Why “Visual Investor”? This is my reverence for the technologies we have come to now. The modern investor has incredible opportunities compared to our colleagues, even from the beginning of the 21st century. Access to companies' financial data has become an order of magnitude easier, and their visualization allows for fundamental analysis to be done much faster than before.
Global financial centers are now much closer to investors from different countries, thanks to the development of local regulation, active work of financial institutions and services. All this has expanded the range of investment instruments and formed a new way of life for our savings.
A modern person may not be a passive observer of fluctuations in the purchasing power of his own capital. On the contrary, he can independently make decisions to increase this capacity, using technology and a systematic approach. Unfortunately, unmanaged savings will suffer the unenviable fate of the hundred dollar bill from the beginning of the last century.
This chart shows how the $100 bill has depreciated since 1914 due to inflation. By the beginning of the First World War, the monthly salary of a highly skilled worker or employee could reach exactly this amount. If your super-rich great-great-grandfather buried a chest of these bills, and you found it, you'd probably be furious with him. Because $100 now is like $2 then. “Dear Grandpa, why didn’t you buy something from that list ?” you might say in your heart.
However, we must give credit to our hero, as the propensity to save is a skill that any investor should start with, and something I talk about in the early chapters of my book. As Charles Munger said, “I was a cautious little squirrel who hoarded more nuts than I needed and didn’t climb into my own pile of nuts.”
The book is divided into three parts, allowing you to start with any of them, depending on your current level of knowledge.
Part One
This part will be interesting to anyone who wants to understand why we need investments, what a joint-stock company and a stock exchange are, how the price and its schedule are formed. Duration of study: 3 hours 15 minutes.
Part two
This part will be of interest to anyone who already knows the basics of stock trading but wants to understand the fundamental analysis of a company's business. Duration of study: 5 hours.
Part three
This part will be of interest to anyone who understands the financial statements of companies and wants to build a decision-making system on the stock market based on this knowledge. Duration of study: 11 hours.
I recommend reading the book “Visual Investor” thoughtfully, with pauses to understand each chapter. It is precisely with this measured pace in mind that the estimated duration of study for each block and each article has been calculated. You can move faster if you like. If you devote 1 hour a day to the book, then after 20 days you will be able to master the entire theory. Don't rush to apply the knowledge immediately you've gained in real life. TradingView has great tools for hands-on research, such as the Market Simulator and Paper Trading, that will help you solidify your knowledge without risking your capital. Similarly, civil aviation pilots train on a flight simulator before their first flight. Remember that your knowledge, systematic approach, persistence and a pinch of luck can transform everything around you. But if you still need my support, I'm here. Yours, Capy.
Part One
1. Investing is the ability to say "no" so that you can say "yes"
The reader will learn that investing is a conscious skill of foregoing immediate spending in favor of greater value in the future, based on strategy, patience, and an understanding of the difference between investing and speculation. Duration of study: 15 minutes.
2. Raising initial capital: 4 approaches, of which one is not good
The reader will learn about four ways to form start-up capital for investments, and why borrowed money is the least sensible of them. Duration of study: 10 minutes.
3. The lifestyle of your savings, and why Big Mac?
The reader will learn that investing is a conscious way to preserve and increase the purchasing power of savings, in which the level of potential profit is always proportional to the risk taken. Duration of study: 10 minutes.
4. What is a stock? Let me tell you a story
Using the example of a shoe workshop owner, the reader will learn how companies issue shares to raise capital and expand their business. Duration of study: 15 minutes.
5. Stock Company. Selling something that no one will buy piecemeal
Using the same example, the reader is explained the process of transforming a company into a joint-stock company and conducting an IPO to attract investment. Duration of study: 10 minutes.
6. I dream of entering the stock market. The question is: What for?
The reader learns that going public is a way for a company to make its shares available to a wider range of investors, increase liquidity, and simplify the process of raising capital. Duration of study: 10 minutes.
7. How is the share price formed on the stock exchange? We do it
The reader will learn how the price of a stock is formed on the stock exchange through the mechanism of bids from buyers and sellers, reflecting the balance of supply and demand. Duration of study: 20 minutes.
8. Bid/Offer: The Yin and Yang of Stock Prices
The reader will learn how buy (bid) and sell (offer) orders from the order book on the exchange, determining the mechanism for concluding transactions and the formation of the market price. Duration of study: 20 minutes.
9. Market order or the hunger games of stock trading
The reader will learn that market orders allow shares to be bought or sold immediately without specifying a price, satisfying the current demand or offer at prices available in the order book. Duration of study: 15 minutes.
10. The birth of the chart. The evolution of the tape
The reader will learn how price movement charts are formed from the stock exchange quotes feed and will see historical examples of the evolution of methods for displaying market data. Duration of study: 10 minutes.
11. Japanese Candlesticks: Game of Body and Shadows
The reader will learn how Japanese candlesticks are constructed, including determining the opening, closing, high, and low prices for a selected time interval, as well as the importance of the candlestick body and shadows in analyzing price movements. Duration of study: 20 minutes.
12. A little bit about volumes and the master of all averages
The reader will learn how to analyze trading volumes and use a 252-day moving average to evaluate stock price movements. Duration of study: 10 minutes.
13. My Three Comrades: the Chart, the Screener, and the Watchlist
The reader will learn step-by-step how to use the TradingView platform's chart, screener, and watchlist features to find and track stocks even if he doesn't know the company's ticker. Duration of study: 15 minutes.
14. Two captains of the same ship
The reader will learn how to use fundamental analysis to assess a company's financial strength by adding financial indicators to a chart in TradingView, and why the author prefers this method over technical analysis. Duration of study: 15 minutes.
Part two
15. My crazy partner is Mr. Market!
The reader will learn about the concept of "Mr. Market" introduced by Benjamin Graham, which illustrates the irrationality of market behavior and emphasizes the importance of fundamental analysis in making sound investment decisions. Duration of study: 10 minutes.
16. Picking rules - the Lynch method
The reader will learn about Peter Lynch's investment principles, including the benefits of private investors, the importance of a financial safety net, the need to understand a company's performance before investing, and the importance of analyzing its earnings. Duration of study: 15 minutes.
17. A pill for missed opportunities
The reader will learn how to set up alerts in TradingView to react promptly to changes in stock prices, thereby avoiding missing profitable opportunities to buy or sell. Duration of study: 15 minutes.
18. Man on the shoulders of giants
The reader learns the story of an Indian engineer who, after starting to invest in his 30s, achieved significant success, emphasizing the importance of self-education and inspiration from eminent investors. Duration of study: 10 minutes.
19. Price is what you pay, but value is what you get
The reader will learn about Warren Buffett's approach to investing based on the difference between price and the intrinsic value of a company, and the importance of fundamental analysis in making investment decisions. Duration of study: 10 minutes.
20. Balance sheet: taking the first steps
The reader will learn about the structure of the balance sheet, including the concepts of assets, liabilities, and equity. Duration of study: 30 minutes.
21. Assets I prioritize
The reader will learn which balance sheet items are most important for assessing a company's sales performance, and why the author focuses on cash, accounts receivable, and inventory when analyzing current assets. Duration of study: 20 minutes.
22. A sense of debt
The reader will learn about the structure of liabilities and shareholders' equity on a company's balance sheet, including the differences between short-term and long-term debt, and will understand how to analyze debt burden when assessing a company's financial health. Duration of study: 20 minutes.
23. At the beginning was the Equity
The reader will learn about a company's capital structure, including the concepts of retained earnings and return on investment, and will understand how these items are reflected in the balance sheet. Duration of study: 20 minutes.
24. The income statement: the place where profit lives
The reader will learn about the structure of a company's income statement, including key indicators: revenue, cost, gross and operating profit, as well as the importance of these metrics for assessing the financial condition of the enterprise and their impact on the dynamics of stock prices. Duration of study: 30 minutes.
25. My precious-s-s-s EPS
The reader learns that earnings per share (EPS) is calculated as net income available to common shareholders divided by the number of common shares outstanding, and that diluted EPS considers potential increases in the share count due to employee options and other factors that affect earnings distributions. Duration of study: 20 minutes.
26. What should I look at in the Income statement?
The reader will learn which key income statement metrics — such as revenue, gross profit, operating expenses, debt service expense, net income, and diluted earnings per share (EPS Diluted) — the author believes are most important for assessing a company's financial health. Duration of study: 10 minutes.
27. Cash flow statement or Three great rivers
The reader will learn about the structure of the cash flow statement, which includes three main flows: operating, financial and investing, and will understand how these cash flows affect the financial condition of the company. Duration of study: 20 minutes.
28. Cash flow vibrations
The reader will learn how to analyze a company's operating, investment, and financial cash flows to assess its sustainability, strategy, and ability to effectively manage resources. Duration of study: 20 minutes.
29. Financial ratios: digesting them together
The reader will learn that financial ratios are relations between various financial reporting indicators that allow an objective assessment of the financial condition and value of a company, and will understand how to use key multiples to analyze the investment attractiveness of a business. Duration of study: 25 minutes.
30. What can financial ratios tell us?
The reader will learn about key financial ratios such as Diluted EPS, Price/Earnings Ratio (P/E), Gross Margin, Operating Expense Ratio, Return on Equity (ROE), Days Payable and Days Sales Outstanding, and Inventory to Revenue Ratio, and will understand how to use these metrics to assess a company's financial health and investment attractiveness. Duration of study: 30 minutes.
Part three
31. Price / Earnings: Interpretation #1
The reader will learn how the P/E (price to earnings) ratio helps assess the value of a company by determining how many dollars an investor pays for each dollar of earnings, and will understand why a lower P/E may indicate that a company is undervalued. Duration of study: 25 minutes.
32. Price/Earnings: amazing interpretation #2
The reader will learn an alternative approach to interpreting the P/E ratio by viewing it as the number of years it takes to break even on an investment, assuming the company's earnings are stable. Duration of study: 30 minutes.
33. How to apply an indicator that is only available upon request?
The reader will learn how scripts written in Pine Script work on the TradingView platform and what levels of access there are to them: from completely open to requiring an invitation from the author. The article explains how to request access to an indicator if it is restricted, and what steps to take to add it to a chart once permission is granted. Duration of study: 15 minutes.
34. How to assess the fundamental strength of the company?
The reader will learn about the approach to assessing the financial stability of a company through the aggregation of key financial indicators and multipliers, allowing a visual and quantitative assessment of the dynamics and current state of the business. Duration of study: 30 minutes.
35. How to evaluate the work of company management?
The reader will learn about the approach to assessing the effectiveness of a company's management through the prism of the concept described by Eliyahu Goldratt in his book "The Goal", which focuses on three key indicators: throughput, inventory and operational expenses, and will understand how these indicators affect the financial results of the enterprise. Duration of study: 30 minutes.
36. How to evaluate the state of a company's cash flows?
The reader will learn about the importance of cash flow analysis in assessing a company's financial health, including the interpretation of operating, investing, and financing flows. Duration of study: 25 minutes.
37. How to catch the rainbow by the tail?
The reader will learn how to determine optimal price ranges for buying stocks based on the principles of fundamental analysis and the idea of investing with a margin of safety. Duration of study: 40 minutes.
38. How to convert craziness into results?
The reader will learn how to navigate market volatility, make smart stock selling decisions, and use a fundamental approach to turn emotional market swings into rational investment actions. Duration of study: 35 minutes.
39. How to use Replay to study indicators?
The reader will learn how to use the Market Simulator feature on the TradingView platform to analyze historical data and test indicators, including step-by-step instructions for activating the simulator, selecting the start date, adjusting the playback speed, and interpreting the results when analyzing NVIDIA Corporation stock. Duration of study: 30 minutes.
40. How to explain my decision-making system?
The reader will learn about the author's approach to choosing stocks for investment, which includes an analysis of the fundamental strength of the company, cash flow dynamics, news, P/E multiple and other aspects of the decision-making system. Duration of study: 35 minutes.
41. The most subjective facet of my decision-making system
The reader will learn how news, although difficult to formalize, influences the investment decision-making process and why its interpretation is the most subjective aspect in stock evaluation. Duration of study: 35 minutes.
42. Full instructions for studying the fundamental strength of a company
The reader will learn how to use applied tools to evaluate a company's financial results, visually track their dynamics over time, and analyze the movement of key cash flows, which accelerates the process of selecting companies with strong fundamental indicators. Duration of study: 90 minutes.
43. Full instructions for determining price ranges for opening and closing positions
The reader will learn how to determine optimal price ranges and trade sizes when investing in stocks, based on the principles of value investing and Benjamin Graham's "margin of safety" concept. Duration of study: 120 minutes.
44. 10 tricks for developing discipline or here was Warren
The reader will learn ten practical methods to help investors develop discipline, including using alerts, keeping a trading journal, and developing good habits, and will understand how discipline affects the achievement of investment goals. Duration of study: 40 minutes.
45. The Inside Out Investor
The reader will learn how emotional states such as fear, excitement, and fear of missing out (FOMO) influence investment decisions and will understand how awareness of these emotions helps an investor stick to their chosen strategy and make informed decisions. Duration of study: 20 minutes.
46. Effective inefficiency
The reader will learn about the different approaches to using Stop Losses in investment strategies, their impact on the profit/loss ratio, as well as the concept of market efficiency and strategies in it. Duration of study: 30 minutes.
47. Institute of Intermediation and 24 Coffee Lovers
The reader will learn about the factors that create market inefficiencies, such as delays in the dissemination of information, high volatility, the actions of large players and participant errors, as well as the role of intermediaries - brokers and exchanges - in ensuring the efficiency and convenience of trading in financial markets. Duration of study: 25 minutes.
48. Eternal Sunshine of the Spotless Mind
The reader will learn about the life of Charles Munger, vice chairman of Berkshire Hathaway, his investment philosophy based on common sense and discipline, as well as his views on the importance of personal relationships and moderation in achieving success. Duration of study: 5 minutes.
SPY $575 By End of MonthAMEX:SPY , NYSE:ES , GETTEX:MES - It looks like we may be headed back to the neckline of the double top that we broke on March 4th, 2025. That would set a target of around $575-ish before we make the next leg down - matching NASDAQ:DJT and $XHB.
SPY - support & resistant areas for today March 27 2025The key support and resistance levels for SPY today are above.
Follow me to get this notified when I publish in the morning. My group in my signature, get these first then ideas, and then minds; I also post these for QQQ TSLA META VIX in my group, so join if y'all haven't.
Understanding key levels in trading can provide valuable insights into potential market movements. These levels often indicate where prices might reverse or consolidate, serving as important signals for traders considering long (buy) or short (sell) positions.
Calculated using complex mathematical models, these levels are tailored for today's trading session and may evolve as market conditions change.
If you find this information beneficial and would like to receive these insights every morning at 9:30 AM, I invite you to support me by boosting this post and following me @OnePunchMan91.
Your engagement is greatly valued! However, please note that if this post doesn’t receive more than 20 boosts, I will have to reconsider providing these daily updates. Thank you for your support!
Need any other charts daily, Or how to trade this? Comment on this.
SPY/QQQ Plan Your Trade For 3-27-25 : Breakaway PatternToday's Breakaway pattern suggests the markets will continue to melt downward (possibly attempting to fill the Gap from March 24).
I strongly believe the SPY/QQQ are completing the "rolling top" pattern I suggested would happen near or after the March 21-24 TOP pattern my deeper cycle research suggested was likely.
At this point, things are just starting to line up for a broader market decline while the current EPP pattern plays out as a Breakdown of the EPP Flagging formation (moving into consolidation).
Gold and Silver are RIPPING higher. Yes, I do expect a little bit of volatility near these recent highs. But, I also expect metals to continue to rally higher from these levels over the next 10-15+ days. Watch the video.
Bitcoin is stalling/topping - just as I suggested it would months ago.
Now we see how the market move into this new trending phase and how far this current trend will drive price trends. I believe the SPY/QQQ/Bitcoin will all continue to move downward while Gold/Silver move (RIP) higher on this breakaway move.
This is a PERFECT trader's market.
Get some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver
* SPY Update 3/25 *Hello again peoples,
As we witnessed today, price did not do what I was looking for yesterday. Instead, we went through some range bound price movement, tested yesterday's high and bounced back strong towards today's high but not break out happened yet. That is just a perfect scenario to raise my blood pressure, but here is what I will be looking for tomorrow.
- Today's consolidation could be a bear trap for those that realized the early signs of trend weakness. As you know, our target for W3 to be completed is right above this resistance at $577. We were able to consolidate, and possibly accumulate, right below that level while holding $573 support. Bears tried, but even when they aggressively pushed down price, as soon as it hit our support, price stabilized and bulls pushed back up at the end of the day.
- If you look at our 30D Volume Profile, you can see 3 levels that I highlighted. The level #1 is the support we held, #2 is here I can see price finding resistance (end of the 70% value area), #3 is where price might go it it breaks #2.
- It might be a crazy coincidence of the universe, but our TP for W3 is right in between #2 and #3.
- In our 5min chart, we can see how we were able to bounce off the 200 EMA. And if you look at the 1hour chart:
- You can see that our 20Ema(orange) is the same as the 200ema in the 5min chart.
- A nice buy opportunity for those that missed today will be if price test that $574 support again before starting our last leg up towards $580.
Anyway, this is what I have for today. Let me know what you think and how I can make my analysis better!
Trading Is Not Gambling: Become A Better Trader Part III'm so thankful the admins at Tradingview selected my first Trading Is Not Gambling video for their Editor's Pick section. What an honor.
I put together this video to try to teach all the new followers how to use analysis to try to plan trade actions and to attempt to minimize risks.
Within this video, I try to teach you to explore the best opportunities based on strong research/analysis skills and to learn to wait for the best opportunities for profits.
Trading is very similar to hunting or trying to hit a baseball... you have to WAIT for the best opportunity, then make a decision on how to execute for the best results.
Trust me, if trading was easy, everyone would be making millions and no one would be trying to find the best trade solutions.
In my opinion, the best solution is to learn the skills to try to develop the best consistent outcomes. And that is what I'm trying to teach you in this video.
I look forward to your comments and suggestions.
Get some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver
ETFs vs Mutual Funds: Differences and Advantages ETFs vs Mutual Funds: Differences and Advantages
Exchange-traded funds (ETFs) and mutual funds are two of the most popular investment options, each offering unique features and advantages. While both provide access to diversified portfolios, their differences in structure, management, and trading make them suitable for different strategies. This article breaks down the key distinctions between exchange-traded funds vs mutual funds and how to choose between them.
What Are ETFs?
Exchange-traded funds, or ETFs, are investment vehicles that allow traders to access a diverse range of assets through a single product. An ETF is essentially a basket of investments—such as stocks, bonds, or commodities—that typically tracks the performance of an index, sector, or specific theme. For example, SPDR S&P 500 ETF Trust (SPY) follows the S&P 500 index, providing exposure to the largest companies listed on US stock exchanges.
What sets ETFs apart is how they’re traded. Unlike mutual funds, which are only bought or sold at the end of the trading day, ETFs trade on stock exchanges throughout the day, just like individual shares. This means their prices fluctuate as demand and supply change, giving traders the flexibility to enter or exit positions at market prices.
ETFs are known for their cost-effectiveness, as most are passively managed to mirror the performance of an index rather than exceed it. This passive structure usually leads to lower management fees compared to actively managed funds. Additionally, ETFs are often transparent, with their holdings disclosed daily, so investors know exactly what they’re buying.
ETFs come in various types, from those focused on specific sectors, like technology or healthcare, to broader options covering entire economies or bond markets. This variety makes them a popular choice for traders and investors looking to diversify or target specific market opportunities.
What Are Mutual Funds?
Mutual funds are investment products that pool money from multiple investors to create a diversified portfolio, typically managed by a professional fund manager. These funds invest in a wide range of assets, including stocks, bonds, and other securities, depending on the fund’s objective. For instance, an equity mutual fund focuses on stocks, while a bond fund invests primarily in fixed-income securities.
One defining feature of mutual funds is their pricing. Unlike ETFs, mutual funds aren’t traded on stock exchanges. Instead, they are bought and sold at the fund’s net asset value (NAV), which is calculated at the end of each trading day. This makes them more suited to long-term investment strategies.
Mutual funds often appeal to investors looking for a hands-off approach. The fund manager handles the selection and management of assets, aiming to achieve the fund’s stated goals—whether that’s generating income, preserving capital, or achieving long-term growth.
However, this active management comes with higher fees compared to ETFs. These costs include management fees and sometimes additional charges like entry or exit loads, which can eat into returns over time.
Mutual funds also often require a minimum investment, making them less accessible for some investors. That said, they offer a wide variety of options, from sector-specific funds to diversified portfolios, providing flexibility for different investment goals and risk preferences.
Are There Differences Between an ETF and a Mutual Fund?
ETFs and mutual funds share similarities—they both allow investors to pool money into diversified portfolios. However, the differences between ETFs and mutual funds can significantly impact which one is better suited to an investor’s goals.
Trading and Pricing
ETFs are traded on stock exchanges continuously during market hours, similar to individual shares. Price fluctuations are based on market demand and supply. In contrast, mutual funds are priced only once per day after the market closes, based on the fund’s net asset value (NAV). This makes ETFs more appealing for those seeking flexibility and the ability to react to market movements, while mutual funds cater to long-term investors less concerned with intraday price changes.
Management Style
ETFs are mostly passively managed, designed to track the performance of a specific index, sector, or asset class. Mutual funds, on the other hand, often feature active management. This involves fund managers selecting assets to outperform the market, which can offer potential opportunities for higher returns but also comes with increased costs.
Fees and Costs
ETFs typically come with a lower expense ratio compared to mutual funds, making them more cost-efficient. This is due to their passive management approach and lower operational costs. Mutual funds may charge higher fees to cover active management and administrative expenses. Additionally, mutual funds may have extra costs like sales charges or redemption fees, whereas ETFs incur standard brokerage commissions.
Liquidity
When considering mutual funds versus ETFs, liquidity becomes a critical factor, as ETF prices change intraday, while mutual funds are limited to end-of-day pricing. This difference can influence how quickly you can access your funds.
Tax Efficiency
ETFs tend to be more tax-efficient because of their structure. When investors sell ETF shares, transactions occur directly between buyers and sellers on the exchange, limiting taxable events. In mutual funds, redemptions often require the fund manager to sell securities, which can result in capital gains distributed to all investors in the fund.
Minimum Investment
Mutual funds often require a minimum initial investment, which can range from a few hundred to thousands of dollars. ETFs, however, don’t have such requirements—traders can purchase as little as a single share, making them more accessible for those with smaller starting capital.
ETF CFD Trading
ETF CFD trading offers a flexible way for traders to speculate on the price movements of exchange-traded funds without the need to buy them on stock exchanges. CFDs, or Contracts for Difference, are derivative products that track the price of an ETF, allowing traders to take positions on whether the price will rise or fall. This approach is particularly appealing for short-term speculation, making it a useful complement to traditional long-term ETF or mutual fund investing.
Flexibility
One of the standout features of ETF CFDs is their flexibility. Unlike investing directly in ETFs, CFD trading enables you to capitalise on price fluctuations without owning ETF shares. Traders can go long if they anticipate a rise in the ETF’s value or short if they expect a decline. This ability to trade in both directions can potentially create opportunities in both bullish and bearish markets. Moreover, CFDs allow for trading over shorter timeframes like 1-minute or 5-minute charts, providing potential opportunities for scalpers and day traders.
Leverage
Leverage is another significant feature of ETF CFDs. With leverage, traders can gain larger exposure to an ETF’s price movements with smaller initial capital. For example, using 5:1 leverage, a $1,000 position would control $5,000 worth of ETF exposure. However, you should remember that while this magnifies potential returns, losses are also amplified, making risk management a critical component of trading CFD products.
Costs
Actively managed ETFs can charge expense ratios to cover management and operational costs. CFDs eliminate these fees, as traders don’t directly invest in the ETF’s assets. However, both ETF investing and ETF CFD trading include brokerage fees or spreads.
Wider Range of Markets
With CFDs, traders can access a variety of global ETF markets through a single platform. This reduces the need to open accounts in different jurisdictions, saving on administrative and currency conversion costs.
CFD trading is popular among traders who want to take advantage of short-term price movements, diversify their strategies, or access ETF markets straightforwardly. While traditional ETFs are often favoured for long-term growth, ETF CFDs provide an active, fast-paced alternative for traders looking to react quickly to market changes.
Use Cases for ETFs and Mutual Funds
In comparing ETFs vs mutual funds, it’s important to recognise their use cases based on an investor’s goals, strategies, and time horizons.
ETFs
ETFs are used by investors seeking flexibility and real-time market engagement. They are attractive for those who want to take advantage of price movements or actively manage their portfolios. For example, an investor might focus on sector-specific ETFs, like technology or energy, to capitalise on industry trends. ETFs also offer a lower-cost option for diversification, making them useful for those building broad exposure across markets without significant capital.
Additionally, ETFs may be effective for hedging. An investor with exposure to a specific market segment can use an ETF to potentially offset risks, especially in volatile markets. For instance, during an anticipated downturn in equities, an inverse ETF could be used to possibly mitigate losses.
Mutual Funds
Mutual funds are popular among long-term investors prioritising professional management. Their hands-off approach makes them appealing to individuals who prefer not to monitor markets daily. For instance, someone saving for retirement might opt for a diversified mutual fund that balances risk and growth over time.
Mutual funds are also advantageous for accessing specialised strategies, such as actively managed funds focusing on niche markets or themes. While they typically involve higher fees, the tailored management can align with specific financial objectives.
Factors for Choosing Between ETFs and Mutual Funds
Selecting between mutual funds vs ETF options depends on an investor’s financial goals, trading style, and the level of involvement they are comfortable with in managing their investments.
- Time Horizon: ETFs are popular among short- to medium-term investors and traders who prefer flexibility and the ability to follow intraday price movement. Mutual funds, on the other hand, are mostly used by long-term investors focused on gradual growth or income over time.
- Cost Sensitivity: ETFs generally have lower expense ratios and no minimum investment requirements, making them cost-efficient. Mutual funds often involve higher management fees and, in some cases, additional charges like entry or exit fees, which can add up over time.
- Active vs Passive Management: If you’re looking for a hands-off approach with professional oversight, actively managed mutual funds might be more appealing. However, if you prefer to track indices or specific sectors at a lower cost, ETFs might be more suitable.
- Liquidity Needs: Investors who need quick access to their capital often prefer ETFs because they can be traded throughout the day. Mutual funds lack this intraday liquidity, as transactions are only processed at the trading day’s end.
The Bottom Line
Understanding the differences between mutual funds vs exchange-traded funds is crucial for selecting the right investment approach. ETFs offer flexibility and cost-efficiency, while mutual funds are popular among long-term investors seeking professional management. For those interested in ETF CFD trading, which allows traders trade in rising and falling markets, opening an FXOpen account provides access to a diverse range of ETF markets alongside competitive trading conditions.
FAQ
What Is an ETF vs Mutual Fund?
An ETF is a fund traded on stock exchanges, offering intraday liquidity and lower fees, typically tracking an index or sector. A mutual fund pools investor money for professional management, priced once at the end of a trading day at its net asset value per share.
Mutual Funds and ETFs: Differences
ETFs trade like stocks, are generally more cost-efficient, and offer intraday liquidity. Mutual funds are actively managed, have higher fees, and are designed for long-term investing with end-of-day pricing.
Is the S&P 500 an ETF or a Mutual Fund?
The S&P 500 itself is an index, not a fund. However, it can be tracked by both ETFs (like SPDR S&P 500 ETF) and mutual funds, offering similar exposure but with differing management styles and fee structures.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
SPY/QQQ Plan Your Trade for 3-24-25 : Bozu Trending PatternToday's Bozu Trending pattern suggests a very aggressive price move is likely. I believe this move will be to the upside after my weekend research suggested we are moving into a "blow-off" topping pattern that will act as a Bull Trap.
Overall, I belive the SPY/QQQ have about 2-3 days up upward price trending early this week, then the markets will suddenly roll into a topping pattern and start to aggressively move downward.
The next base/bottom of the continued downward price trend sets up in early/mid April. The March 21-24 base/bottom is likely the minor base/bottom we have seen over the past 3-5+ days.
I believe the breakdown in the SPY/QQQ late this week and into next week will result in a new lower low - causing the Consolidation phase of this downturn to extend down to the 520-525 level on the SPY.
Bitcoin is very close to my $88,000 upper target level (only about $250 off that level). Get ready, BTCUSD should make an aggressive move downward after stalling near the FWB:88K level peak.
Gold and Silver are moving into a trending mode. I believe both Gold and Silver will rally this week and into the next few weeks as we expand into the Expansion phase.
Buckle up. If my research is correct, we are going to see a BIG ROLLOVER this week.
Get some.
#trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver
House of Cards - $585 before the crashHouse of Cards - $585 before the crash
I'm unable to update my previous idea that I originally posted in February when AMEX:SPY was at the top. Going to make this brief and will add screenshots and additional notes once the structure of Wave (B) is confirmed or invalidated.
On the 500R chart ($5), the price has risen in a distinct 3-wave pattern labelled A-B-C, with C reaching the 1.236 extension of A and finding resistance at the 100SMA (yellow). The low of Wave (A) respected the boundary of the lower line of the regression trend I have added to the chart. While this trend started prior to what I am considering Wave (A), I still think it provides a good target for the top of the retracement.
Wave (c) of A of (B) (still following me?) is not confirmed as complete yet. It could extend as far as $584 without pulling back, however I anticipate the market building more liquidity on the way up while burning options in the process. I bought 3/28 $570p at the end of the day in case we see a 50%-61.8% pullback to $560-$563 by the end of the week. If that happens, we should have enough room to reach the upper band at $585, which would be a little over a 50% retracement of Wave (A). This would also cause the price to touch the 200 SMA (green), which is common in the first major retracement of a bear market.
Lastly, from a psychological perspective, the market reached an overwhelmingly bearish consensus from mid-February to mid-March. Sentiment during Wave (a) was mostly bearish, but sentiment has shifted positive since the price entered Wave (c) and gapped up on Monday, resulting in a >+1% day. This sets the stage for a rug pull and subsequent bear trap for late sellers who will assume the downtrend has resumed prematurely.
We'll see how this plays out. I'll switch to calls if a higher high is made Wednesday 3/26. Good luck to all.
Nightly $SPY / $SPX Scenarios for March 28, 2025🔮 🔮
🌍 Market-Moving News 🌍:
🇺🇸📊 Core PCE Inflation Data Release: The Personal Consumption Expenditures (PCE) Price Index for February is set to be released. Economists anticipate a 0.3% month-over-month increase and a 2.5% year-over-year growth, aligning with previous figures. As the Federal Reserve's preferred inflation gauge, this data could influence monetary policy decisions.
🇺🇸🛍️ Consumer Spending and Income Reports: February's personal income and spending reports are due, with forecasts indicating a 0.4% rise in personal income and a 0.5% increase in personal spending. These figures will provide insights into consumer behavior and economic momentum.
🇺🇸🏠 Pending Home Sales Data: The Pending Home Sales Index for February is scheduled for release, with expectations of a 2.0% increase, following a 1.0% rise in January. This index offers a forward-looking perspective on housing market activity.
📊 Key Data Releases 📊
📅 Friday, March 28:
💵 Personal Income (8:30 AM ET):
Forecast: +0.4%
Previous: +0.9%
Measures the change in income received from all sources by consumers.
🛍️ Personal Spending (8:30 AM ET):
Forecast: +0.5%
Previous: -0.2%
Tracks the change in the value of spending by consumers.
📈 PCE Price Index (8:30 AM ET):
Forecast: +0.3% month-over-month; +2.5% year-over-year
Previous: +0.3% month-over-month; +2.5% year-over-year
Reflects changes in the price of goods and services purchased by consumers.
🏠 Pending Home Sales Index (10:00 AM ET):
Forecast: +2.0%
Previous: +1.0%
Indicates the number of homes under contract to be sold but still awaiting the closing transaction.
⚠️ Disclaimer: This information is for educational and informational purposes only and should not be construed as financial advice. Always consult a licensed financial advisor before making investment decisions.
📌 #trading #stockmarket #economy #news #trendtao #charting #technicalanalysis
SPY timing for low Tgt $585My short idea target was hit (and blown yesterday, tho QQQ idea was almost perfect), and if you saw the last idea, I mentioned the date of the 11th was in play. This seems accurate from what I'm getting now with my dowsing work.
I am quite pumped that the timing was so good. The upside target (repeating) is around $585. When I ask what date this hits by, I get 3/25. We shall see if lightning can strike twice!
$SPY: Second Bearish Wave in Motion, $537 First, $512 Next
AMEX:SPY , looking at the bear market that started in February, it looks today as if a 2nd bearish wave started. It will not be confirmed until $549 is broken, however Fib projections point to $537 as first stop, and eventually at $512 as 2nd stop.
Chat, Are we Cooked?We had a very similar post-Covid run up all the way before breaking in January 2022.
We saw a similar run up since that time.
Round 2, or just an overreaction?
SPY REPEATING THIS JANUARY 2022 PATTERN NOW !! (March 24, 2025)This bearish pattern is repeating on AMEX:SPY let's talk abt it
SPY - support & resistant areas for today March 28 2025The key support and resistance levels for SPY today are above.
Follow me to get this notified when I publish in the morning. My group in my signature, get these first then ideas, and then minds; I also post these for QQQ TSLA META VIX in my group, so join if y'all haven't.
Understanding key levels in trading can provide valuable insights into potential market movements. These levels often indicate where prices might reverse or consolidate, serving as important signals for traders considering long (buy) or short (sell) positions.
Calculated using complex mathematical models, these levels are tailored for today's trading session and may evolve as market conditions change.
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Need any other charts daily, Or how to trade this? Comment on this.
SPY 03/26Looks like it's about to roll down. First target would be monthly VWAP. Not financial advice. Could also range a little bit longer.
$SPY March 26, 2025AMEX:SPY March 26, 2025
15 Minutes.
Sideways consolidation on for moving averages to catch up.
For the moment upside is capped 576-579 levels which is also top of channel.
576 - 578 is a good sell for 571-573 levels target for today.
Since 3 moving averages are nearby 9, 21 and 50.
I expect a one-sided movement.
So far, no trade for me for the week.
