SwingWaiter

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Look what happened to VIX right after December's CPI release. Equity and bond markets reacted positively, so VIX tanked... but then bounced most of the way back by 12:30. Traders who are long and want to hedge news could try this play: Set stops for their longs and buy an appropriate amount of VIX. If the markets tank, expect VIX to advance strongly, and...

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The Point and Figure chart (an example for West Texas Intermediate crude oil futures, traded on NYMEX, is shown here) is used to identify price breakouts. These breakouts can be to the upside or to the downside—in either case potentially producing large profit opportunities. Mechanical rules free the trader from worry about when to act. (How to act is another...

SwingWaiter Updated 

Those who judge that the current bear market has further to go may wish to back that judgment by shorting the Dow Jones Industrial Average. Like the Russell 2000 on Tuesday and the S&P 500 on Wednesday, the Dow has just made a bear DMI cross on the daily chart. Remember that as for any short position, the ride down is bumpier than is the ride up for a long position.

SwingWaiter Updated 

Yesterday we suggested that it could be timely to open a short position in the Russell 2000 based on the appearance of a bear cross on the daily DMI chart. A similar bear cross appeared today on the daily DMI chart for the S&P 500. A short SPX position could be timely here as well.

SwingWaiter Updated 

Like other stock indices, the Russell 2000 spent most of the first quarter of this year under pressure and then recovered somewhat in March. With the DMI having bear crossed today, we are taking an aggressive stance and shorting the index at around 2047. We'll record the trade below as soon as it's entered.

SwingWaiter Updated 

The Euro currency has over the past several months taken another couple sprints downward toward parity with the US buck, punctuated by fair-sized swaths of consolidation and one nice bump upward. Even given the long-term bearish tilt, a one-sided commitment risks missing out on the kind of action we saw in January and February, as well as tying up trading funds...

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Traders holding long positions in gold have been rewarded handsomely over the past few months. The metal's cash price has risen a bit over 5% since the beginning of 2022. Short-term trading action has turned negative. RSI gives evidence that bulls and bears are now fairly evenly matched. If a DMI bear cross (in which DI- advances above DI+) should form on the...

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Note that in this daily chart, corn is approaching a bearish DMI cross. Planting season is hardly under way, so while it might be possible to scalp a few ticks from a short position, we wouldn't expect to get rich doing it. A similar setup is forming in soybeans.

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The British pound / US dollar currency pair is approaching a bullish DMI convergence on this daily chart. Should DI+ cross DI- here, it could be a good time to go long.

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As a trader one can be agnostic to long time frames. What an investor might characterize as a bear market should be to the trader simply another series of selling and buying opportunities. On the daily S&P 500 chart, DI+ has just overtaken DI- for the first time in ten weeks. A trend trader could read this as a buying opportunity. Our account has gone long the...

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For a while recently the Aussie dollar has been tracking the US dollar price of oil. While the correlation is by no means permanent, we've seen both receding recently. AUD/USD's DI- has been approaching a convergence with DI+, and traders may wish to short this pair when the negative indicator crosses higher.

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AT&T rewards shareholders with what is likely to be a great dividend even after the anticipated cut. Its Time Warner spinoff makes business sense and should help it reduce debt. We noticed the same blah market reaction after Ford Motor reported earnings a while back. Scaling into a $T position by writing puts could make sense here.

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Does this trade look like something you'd want to buy into? "No" is always an acceptable answer, but if you (as we) think GBP/USD is ready to revert to the mean, why not step in gently, a few contracts at a time, rather than all at once.

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The bottom of the current volatility futures trend channel is at about 26.20, a level that would have been considered alarmingly high a couple of months ago. If volatility reverses and starts coming back up from at or below that level on Monday or Tuesday, a long position in VIX futures would be a defensible speculation.

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VIX futures have reverted to the mean, which is 28.50 at this writing. Play safely.

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The world in general, and fertilizer prices in particular, are alleged to be going to Hell in a handcart. Infernal scenarios aside, a mean-reversion buy in soybeans off the bottom of the current trend channel could make sense. Beans have been a bit volatile lately, so watch this trade if you make it.

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Nice rise here, but consider going short if AUDUSD reverses after touching the upper bound of the trend channel.

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When a nation with a safe-haven currency uses other nations as war proxies, where do you think the money will flow?