|Day Low/High||6.57 / 6.89|
|52 Wk Low/High||6.29 / 14.18|
If you are looking for logical trading, you will likely be disappointed.
Everyone is focused on the wild action in stocks like AMC and BlackBerry, and here's what that means for the broader market.
All stocks have the potential for movement based on crowd psychology, but sometimes it goes to excessive levels.
How so? First, they are about more than just GIFs and JPEGs.
This is the first of a three-part piece on the recent short-selling saga spurred by traders from Reddit's 'Wallstreetbets.'
What's most important about this market is understanding which themes are driving the action.
KODK is a big mover after regulators discovered no wrongdoing or misconduct in its loan process/award from the U.S. government.
I'd give some time to a SCCO trade and go out to December or January with a $50 call.
To do well in this market you have to be in the 'third market' where the values are.
Stupid is as stupid does. Eastman Kodak was up as much as 65% on the report that D.E. Shaw had taken a stake. Of course the issue with this is that Shaw is a quant fund!
But I'm more interested in what's happening beneath the surface.
This week I covered all of my individual shorts with the exception of Caterpillar and Apple (which I retained for the purpose of reminding myself how stupid I can be at times). Shorts that I will likely soon wish that I hadn't covered this week in...
* There is a fundamental difference between trading your capital and investing your portfolio * Short term trading of shiny objects "du jour" and longer term investing in companies with deepening moats (competitive advantages and enduring franchises...
The icing to the market's cake has been monetary and fiscal stimulus.
* "Buyers live higher, sellers live lower" * With so much systemic buying and little discretionary buying - speculation and large price moves have become more commonplace * How Robinhood is at the core of speculation and why their impact is consider...
* It's the mother of all short squeezes (part deux) * Does he live under water? "Yeah, like Bizarro Superman, Superman's exact opposite, who lives in the backwards Bizarro world. Up is down, down is up, he says hello when he leaves, goodbye when he...
In the vast middle, there is a mishmash of action and rotation.
I suspect that we're more likely to see corrective action in the form of a rotation rather than broad selling in the indices.
The big momentum winners of the past two days are seeing some nasty reversals.
The speculative twins - Kandi Technologies , which was +33% from this morning, and Eastman Kodak , which nearly doubled from this morning, are now down on the day.
* I am bearish on self confidence and certainty in an uncertain world * I am bullish on history and the lessons it has taught me * Speculate, but recognize the downside to holding the bag The sailors say, "Brandy, you're a fine girl" (you're a fine...
The Fed has done a lot, and is willing to do even more, but for now, is watching Congress. The fiscal side is where the next shoe falls.
There are two distinct elements of this market and my choice is easy.
Anyone playing the guessing game into earnings is rolling the dice.
Wild speculative trading continues to be the most fascinating aspect of this market.
The Fed will release its policy statement at 2 pm Eastern time Wednesday.
A positive aspect of this sort of action is that the best trading opportunities tend to stand out more.
My focus is the implied volatility. It gives us put selling or ratio put selling for credit opportunity.