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Showing posts from January, 2022

Opec Basket

The OPEC Basket is a weighted average of the global oil prices from the various OPEC members. Organization of Petroleum Exporting Countries (OPEC) members submit the data that serves as the foundation for the basket. For those who monitor the price of oil and the stability of the international oil market, the basket serves as a benchmark or reference point.

Rally

An extended period of rising stock, bond, or related index prices. A rally typically entails significant upward movements that happen quickly or over a short period of time. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull market rally or a bear market rally, respectively. A rally usually comes after a period of consolidation or declining prices. The counterpart is of a rally is a correction or market crash, which is a sharp decline in short-term prices.

Value Stock

Usually a slower-growing company that is undervalued or heavily discounted. A value stock is a stock that looks to trade at a cheaper price relative to its fundamentals, such as dividends, earnings, or sales, making it enticing to value investors. A value stock is sometimes contrasted with a growth stock.

Mutual Fund

Fund run by an investment firm that invests money raised from shareholders in stocks, bonds, options, commodities, or money market instruments.

30-Year Treasury

A U.S. Treasury debt obligation with a 30-year maturity. Prior to the 10-year Treasury's popularity rising, the 30-year Treasury was widely regarded as the benchmark U.S. bond.

VIX Option

A VIX option is a non-equity index option that tracks and uses the Cboe Volatility Index as its underlying asset.

Uptick Volume

The volume of shares traded when a stock's price rises. It is one of the many indications used by investors to decide whether to buy or sell an asset. Uptick volume is often utilized by traders who use technical analysis—the technique of analyzing charts to observe movements and patterns in stock prices and volumes over time. Uptick volume is used to calculate a stock's net volume (the measure of its momentum) by subtracting the uptick volume from the downtick volume.

10-Year Treasury Note

The 10-year Treasury note is a debt obligation issued by the United States government with a 10-year maturity at the time of issuance. A 10-year Treasury note pays a fixed rate of interest every six months and pays the face value to the holder at maturity. Ten-year Treasury notes are a source of partial funding for the US government.

Advance/decline ratio (ADR)

Advance-decline ratio (ADR) is a typical market- breadth indicator used in technical analysis. Advance-decline ratio (ADR) contrasts the proportion of equities that closed higher with the proportion that closed lower than their closing prices from the prior day. To get the advance-decline ratio, divide the number of advancing shares by the number of sinking shares. Using the ADR: A Quick Explanation To determine if a small number of stocks are responsible for the market's overall success, investors can check the advance-decline ratio's (ADR) moving average against market index performance like the Nasdaq or the New York Stock Exchange. Using this contrast can help shed light on the underlying factors that may be driving an apparent price increase or decrease. Oversold markets are often characterized by a low advance-decline ratio, whereas overbought markets are marked by a high ratio. In this way, the ratio of advances to declines might serve as an early indicator of a market

How to Invest in Today's Volatile Markets

Investing is a long-term strategy . At the same time, let's face it, the past couple of months have been challenging. Many of our growth stocks are down double digits, including our highest convictions Airbnb (ABNB), Tesla (TSLA), Coinbase (COIN), Snowflake (SNOW) and Zoom (ZM). It's difficult seeing stocks that we believe in, take such hard falls. That's investing. What goes up must come down. What comes down must go up. Traders and Investors Mindsets This is where pullbacks and drops in market value become great buying opportunities for long-term investors. For traders, timing is everything.  A stock bought at the beginning of a pullback can easily become a huge loser. The same stock bought at the end of a pullback can instead, turn out to be an awesome winner. For investors, on the other end, time is an ally.  When price runs to all time highs, investors are pleased with their company performance. When price drops to some painful lows, they remain calm and buy the dip

Support

Support, also known as a support level, is the level at which the price of an asset experiences stability as it drops, due to the appearance of an increasing number of buyers who are eager to buy at that price. Support levels may be long-lasting or short-lived depending on whether new information surfaces and alters the market's perception of the asset as a whole. Drawing an horizontal line (and at times diagonal lines, known as trend lines) to connect the lows for the time period being considered, allows technical analysts to chart the support levels, and make a more accurate price projection. The counterpart of support is resistance.

W-Shaped Recovery

A W-shaped recovery is an economic cycle of recession and recovery that looks like the letter W on a chart. In a W-shaped recovery, price experiences a sharp decrease for an extended period of time, followed by a sharp rise to test some near resistance levels, a sharp decline to retest the recent lows, and then another sharp rise above the recent resistance levels. This back-to-back drop and bounce gives form to the W-shape pattern formation.

Financial Materiality

The concept of an event or piece of information that should be taken into account when making investment decisions because of its reasonable likelihood of having an influence on a company's financial situation or operational performance.

Small-Cap

The stock market capitalization of companies with less than $3 billion in market capitalization.

Paris Agreement

An accord within the United Nations Framework Convention on Climate Change setting a worldwide target to keep the rise in global temperatures over pre-industrial levels to well below 2° Celsius while pursuing measures to restrict the increase to 1.5° Celsius.

Long Position

When an investor buys an asset or derivative with the expectation that its value will increase, they have what is known as a long position.

Is the crypto crash over? Watch video

Today we take a look at the technicals for Bitcoin price analysis (BTC) and Ethereum price analysis (ETH). Watch this video to get the technical insights. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. From  Coinbas

NYSE Arca

Market-traded products (ETPs) and stocks are both listed on the electronic U.S. securities exchange known as NYSE Arca. The exchange focuses on listing exchange-traded products, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded vehicles (ETVs).

Y (Ticker Extension)

Y is an extension to a ticker symbol. It denotes that the security is an American depositary receipt (ADR). Therefore, a stock symbol ending with the letter Y indicates that the stock is an American depositary receipt (ADR). ADRs, or negotiable certificates representing shares of foreign stock, are a popular means for U.S. investors to purchase equities of companies based outside of the United States.

Morningstar Ratings

Analysis system developed by Chicago-based Morningstar Inc. for assessing both open- and closed-end mutual funds and annuities. The rating method assigns funds one to five stars based on their risk-adjusted performance, where performance is defined as the fund's overall return.

R2

A number between 0 and 100 indicating the proportion of changes in an index that affect a fund's performance. Any movement in the fund's external index benchmark can account for 100% of the movement of a fund with an R2 of 100.

Kal's Option Trade of the Week: IWM Iron Condor

This week we are going in with the iron condor option strategy on IWM Russell 2000 ETF. The reason for choosing this option trade is that with earnings season approaching, it's hard to find stocks to trade. Rather than waiting for the earnings season to end, the iron condor option strategy on the IWM provides a valuable alternative. Also, in recent years the market itself has become way more volatile, which makes trading index ETFs more appealing and, to some extent, safer. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high r

Visible Supply

Visible supply is the quantity of a good or commodity that is currently being carried or stored and is available for purchase or sale. This supply is crucial because it specifies a precise amount of products that are accessible for acquisition or delivery following the assignment of futures contracts. For example, all corn stored in granaries or storage facilities, as well as corn being transported from farms, are included in the visible supply.

Mean Reversion

Mean reversion, often known as reversion to the mean, is a financial theory that says that historical returns and asset price volatility will eventually return to the long-run average level of the entire dataset.

Bitcoin price today: What's going on?!? Watch BTC analysis now

Today we take a look at the technicals for Bitcoin (BTC). Watch this video to get the technical insights. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. From  Coinbase Bitcoin The world’s first cryptocurrency, Bit

Valuation Analysis

The technique of valuation analysis is used to determine the rough value or worth of any item, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets. The analyst may employ various methodologies to value analysis for various asset types, but the common thread will be a focus on the asset's underlying fundamentals.

Volatility Index (VIX)

Real-time volatility index that represents market expectations for the relative strength of short-term price fluctuations in the S&P 500 Index (SPX). It generates a 30-day forward estimate of volatility as it is generated from the pricing of SPX index options with near-term expiration dates. Volatility is frequently used to evaluate market sentiment, particularly the level of anxiety and fear among market players. The index is more frequently referred to the fear indicator, or simply as the VIX. It was founded by the Cboe Options Exchange (Cboe) and is managed by Cboe Global Markets. It is an important index as it offers a measurable gauge of market risk and investor sentiment.

Tax-Exempt Income

Income that is exempt from income taxes. The income earned by a buyer of state municipal bonds is exempt from federal taxation.

Voting Shares

Shares with voting rights are those that allow the holder to cast a vote for decisions affecting corporate policy. The majority of the time, voting shares are represented by a company's common stock. Voting rights are occasionally absent from various classes of shares, such as preferred stock.

Nasdaq 100

The Nasdaq 100 Index is a group of the 100 largest and most active U.S. non-financial corporations listed on the Nasdaq stock exchange. Due to the large presence of technology companies in its holdings, such as Apple, Nvidia, Microsoft, the Nasdaq 100 is also known as tech-heavy index. Beside the technology sector, a number of different industries, including retail, biotechnology, industrial, and health care are represented in the index.

Capital Loss

Loss that results from the decline in value of a capital asset, such as an investment or a piece of real estate. In order for the loss to become realized, the asset needs to be sold for less than the original acquisition price. Until the sale takes place, that loss if referred to as unrealized loss.

Weighted Average Maturity (WAM)

The weighted average maturity (WAM) of a fund determines the average time to maturity of all securities held in the portfolio, weighted by the percentage of net assets owned by each instrument. The computation takes into consideration the final maturity for a fixed income security and the interest rate reset date for any variable rate instruments included in the portfolio. This is a method of calculating a fund's sensitivity to possible interest rate fluctuations.

INTC Block Order trade: +10% in 4 days with more gains to come. How we are trading it

Today we focus on Intel (INTC) block order trade . A couple of weeks ago we spotted a large block order activity in the dark pool exchanges. Dark pools tell us that an institutional position has been initiated. It does not tell us the direction of that specific position. (The direction is for traders to figure out by watching support and resistance levels.) A few days later price started to show bullish technicals. We initiated a swing alert. Today price popped +5% in the post market following the report of company appointing a new CFO. Up +10% in 4 days with more bullish energy to come. Back in December, institutions knew that something was cooking and they placed that large block order trade, hidden away from the public eye. We saw it, decoded it and traded it. This is the power of Block Orders. Watch this video to get the technical insights. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades

Non-monetary Assets

Non-monetary assets are possessions that a firm has but whose financial value cannot be determined with certainty. These are possessions whose monetary value is subject to wide fluctuations over time. A business could need to replace its non-financial assets if they deteriorate or become outdated. Factory-built tools and vehicles are one illustration of this. In general, non-monetary assets are those that are shown as such on the balance sheet but which cannot be quickly or easily converted into cash or cash equivalents.

Pennant

A pennant is a type of consolidation pattern in technical analysis that develops after a security experiences a major movement, or the flagpole, followed by a sideways move in price action. During this consolidation period, two diagonal and converging trend lines can be drawn to form what looks like a pennant. At some point when price breaks out of the pennant consolidation, the expectation is that price will resume the movement in the same direction of the previous trend, prior to the consolidation period.

Offer

An offer is a preliminary agreement by a buyer or seller to buy or sell an asset that, if accepted, has legal force. Another definition of an offer is the act of selling something or submitting a purchase bid.

Universe of Securities

A group of securities that have something in common with each other. For example, for a U.S. investor, the broad universe of equities will comprise all listed companies (large, mid and small cap), as well as international corporations listed as American depositary receipts (ADRs). Other investors may employ a more narrow universe that is limited to only value stocks or those with a market cap above a certain minimal threshold.

Price-to-Book (P/B) Ratio

Companies measure a company's market capitalization to its book value (net worth) using the price-to-book ratio (P/B ratio). It is determined by dividing the stock price per share by the book value per share of the company (BVPS). In order to determine an asset's book value, which is the same as its carrying value on the balance sheet, businesses net the asset against the asset's total cumulative depreciation. The weighted average price-to-book ratio of the companies in a portfolio is used to calculate the ratio.