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Showing posts from February, 2022

Two ETFs to Trade During the Current Russia-Ukraine Tension

Today we focus on two ETFs (Exchange Traded Funds) that are positioned to perform well during the current and tragic War in Ukraine. 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 s

Level 3

Level 3, also known as TotalView, shows the complete order book depth on Nasdaq, including every single quotation and order at every price level in securities that are listed on Nasdaq, NYSE, NYSE American, and regional exchanges. A trading service will offer pricing data on a securities as a level III quote. Level 3 includes the current bid price, ask price, quote size, latest trade's price, size, high price for the day, and low price for the day. Institutions are permitted to send information, execute orders, and enter quotes at Level 3. Since level 3 provides a high level of market depth, the service is only available to registered Nasdaq market makers and subscribers.

Extended Trading

Trading done by electronic networks outside of the exchange's regular trading hours, either before the opening or after the close. The extended trading hours usually has a lower volume compared to the regular trading hours when the exchange is open. Pre-market trading for equities often takes place in the United States between 4:00 and 9:30 a.m. Eastern Time, while after-hours trading typically occurs between 4:00 and 8:00 p.m. Eastern Time (EST). The regular hours of operation for the US stock markets are 9:30 am to 4:00 pm EST.

US markets rebound after heavy overnight decline. Included are some trade ideas. Watch video

Market had a strong reversal day after heavy overnight decline, following Russian invasion of Ukraine. It was quite a dramatic action during the entirety of the trading session. Markets were down almost -3% in the premarket hours. Right after the open, there was little to no hesitation and then price started climbing, with the SPY (S&P 500) closing +1.5%, the IWM (Russell 2000) up +2.6% and the DJI (Dow Jones) up 0.28%. The tech sector in particularly rallied strongly with the QQQ (Nasdaq 100) closing +3% up on the day. In today's  Trades of the Day video  we go over the indices, some of the inverse ETFs we have been trading during the recent decline (SQQQ, SPXS, TZA...), and some other stocks that have the potential to do well, especially if market extends today recovery effort. Make sure to 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

Uptick

An increase in a financial instrument's price since the previous transaction. An uptick, also known as plus tick, happens when the price of a securities rises in proportion to the previous tick or trade.

Top Down Investing Analysis

Top-down investing is a method of investment analysis that prioritizes the macroeconomic variables of the economy before focusing on the microeconomic factors of particular industries or businesses, such as GDP, employment, taxation, and interest rates.

Technology Sector

The group of companies involved in the creation, distribution, or study of technology-based products and services. Businesses in this industry are focused on producing electronics, writing software applications, building computers, or providing information technology-related goods and services.

Facebook imploded following earnings. It was a short for us. 18% gain in two weeks. Watch video on how we traded it

On February 2nd Facebook (ticker FB) reported earnings . The report was so bad that price dropped nearly 20% in the post market. On the following day (2/3/2022) we spotted a dark pool activity (institutional position) above the opening price, which presented a potential sell off pattern. We refer to those institutional positions as "block orders". On the next day the pattern was confirmed and we initiated a short position. This short trade has produced a nice 18% profit in just a couple of weeks. 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

Negative Arbitrage

Negative arbitrage is the chance lost when bond issuers accept proceeds from debt issues and then store those funds in escrow for a while (often in cash or short-term treasury assets) until the funds may be used to fund a project or to repay investors. Negative arbitrage may occur with a new bond issue or after a debt refinancing.

Investment Banking

A branch of banking that coordinates massive, intricate financial transactions like mergers or the underwriting of initial public offerings (IPOs). In addition to underwriting the issuing of new securities for a corporation, municipality, or other entity, these banks may raise money for businesses in a number of other ways. They could oversee an organization's initial public offering (IPO). They will offer guidance on reorganizations, mergers, and acquisitions. Investment bankers are professionals who are acutely aware of the state of the markets and investment climates, and assist their customers in navigating the challenging world of high finance.

Trading Account

Any investment account that holds securities, money, or other assets. The term trading account most frequently refers to (but not limited to) the main account of a day trader. Because traders often buy and sell assets, frequently within the same trading session, their accounts are subject to additional scrutiny. Assets that may be part of a long-term buy and hold investment plan are kept separate from those that are held in a trading account.

Ratings

Evaluations of the credit quality of bonds usually made by independent rating services. Ratings generally measure the probability of timely repayment of principal and interest on debt securities.

X-Efficiency

The degree of efficiency maintained by companies under situations of imperfect competition. When a corporation is said to be efficient, it means that it is maximizing its outputs from all of its inputs, including worker productivity and production efficiency. Firms are required to be as efficient as possible in order to secure significant profits and continuing existence, in a highly competitive market. This is not true when there is insufficient competition, as when there is a monopoly or a duopoly.

Year-Over-Year (YOY)

A year-on-year comparison is a common financial comparison that looks at two or more quantifiable events on a yearly basis. YOY performance can be used to determine if a company's financial performance is improving, staying the same, or declining. For instance, you can read in financial reports that a certain company stated its fourth-quarter revenues increased year over year for the previous five years.

Position Trader

Trader with a mid-long term horizon (between one and twelve months) who purchases a security in the hope that its value will increase over the long run. Unless something changes in the position's long-term outlook, position traders are not concerned by short-term price fluctuations, market volatility and world events.

Social Bonds

A type of bond where revenues will only be used to finance, refinance, or otherwise make payments on new, existing, or otherwise qualifying social projects.

Value-Based Pricing

A pricing approach that bases prices primarily on the perceived value of a product or service by the consumer. Value pricing is customer-focused pricing, which means that businesses set their prices in accordance with what consumers think a product is worth.

Undercapitalization

When a corporation lacks the capital to carry out routine commercial activities and pay creditors. Undercapitalization happens may happen if the business is not producing adequate cash flow or if it is unable to obtain financing through debt or equity.

Thin Market

A thin market, also known as a narrow market, on any financial exchange is defined as a period of time with a low number of buyers and sellers, whether for a single stock, a specific sector, or the entire market. Price volatility can result from a thin market.

Kal's Option Trade of the Week: QQQ Short Put Vertical

This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. 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 risks of losing your entire investment. You must therefore decide your own suitability

Junk Bond

Bonds with a lower credit rating—BB or lower—and typically a greater yield, that carry a higher default risk than the majority of corporate and governmental bonds. A bond is a debt or promise that, in exchange for being purchased, would pay investors interest payments as well as the return of their principal investment. Junk bonds are bonds issued by struggling businesses that run a significant risk of defaulting, failing to make interest payments, or failing to return investors' principle.

Reserve Fund

A reserve fund is a savings account or other highly liquid asset placed aside by an individual or corporation to cover any costs or financial commitments in the future, particularly those that arise unexpectedly. Less liquid assets may be utilized if the fund is designed to cover the costs of planned renovations.

Underlying Asset

The financial assets on which the price of a derivative is based. Options are a type of derivative; derivatives are derivatives are financial products whose value is based on other assets.

Angel Investor

Angel investors are high-net-worth individuals who support small businesses or entrepreneurs with capital, frequently in exchange for ownership stakes in the enterprise. Angel investors are frequently found among an entrepreneur's friends and family. Angel investors may contribute one-time capital to help a firm get off the ground or continuing funding to help the business get through its challenging early phases. What is an Angel investor If you come across a creative business idea, want to participate in the project, and have capitals to invest, being an angel investor might be the right step for you. By doing so may help a startup company and invest in a firm with significant development potential. An angel investor, sometimes known as a "seed" investor, is a wealthy individual who invests their own money in a young company in exchange for a small percentage of equity. The Angel Capital Association is the largest angel professional development group in the world, and i

12b-1 Fee

A mutual fund fee is a fee used to pay for broker-dealer compensation and other distribution costs. It is called after the SEC rule that authorizes it. If a fund charges a 12b-1 fee, it will be disclosed in the prospectus' fee table.

OHCL Chart

A specific type of bar chart that displays the open, high, low, and closing prices for each period. OHLC charts are very helpful to traders since they display the four main price data points, providing a complete picture of price action during a specific period of time (daily chart, hourly chart, 15-min chart...).

Monetary Policy

A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and adjusting bank reserve requirements. The Federal Reserve Bank of the United States carries out monetary policy under a twin mandate to maximize employment while containing inflation.

Financial Sector

A segment of the economy made up of businesses and institutions that offer financial services to wholesale and retail clients. This industry group includes a wide range of businesses, such as banks, investment organizations, insurance providers, and real estate companies.

Weekly Chart

Weekly charts show a succession of data points, every one of which is made up of the price movement over the course of a single trading week. Each candle, bar, or point on a line on a weekly chart indicates the price summary for a specific trading week. A weekly chart displays the high, low, open, and close for the whole week but not the day-by-day trading moves inside that week. The most popular forms of charts used by traders and investors are candlestick charts and bar charts. The weekly chart is generally used for long-term trading.

Market Depth

Market depth describes a market's capacity to accommodate reasonably sizable market orders without materially affecting the security's price. Market depth relates to trading within a single securities and takes into account the total volume and breadth of open orders, bids, and offers. The depth of the market is typically correlated with the number of buy and sell orders, assuming that these orders are distributed reasonably evenly around the security's current market price.

Trend Line

Trend lines are distinctive lines drawn on charts to link a series of prices. A trend line is generally drawn above or below pivot highs or lows to indicate the price's primary direction. They depict patterns during consolidation periods. In every time frame, trend lines offer a visual representation of support and resistance. The resulting line and/or pattern is then used to provide the trader with a good sense of the direction in which the value of an investment may go.

United Nations

An official network of investors that promotes sustainable investment by taking into account environmental, social and governance (ESG) aspects.

Global Bond

Global bonds, also known as Eurobonds, are a form of bond that are issued and traded outside of the nation where the bond's currency is denominated.

Market Segmentation

Market segmentation is a marketing phrase that refers to grouping potential customers into segments or groups based on their shared needs and how they react to marketing actions. Market segmentation helps businesses to target various consumer demographics who view the entire value of particular goods and services in a variety of ways.

Technical Analysis (TA)

Technical analysis is a trading methodology that uses statistical trends derived from trading activity, such as price movement and volume, to analyze investments and uncover trading opportunities. Technical analysis focuses on the analysis of price and volume as opposed to fundamental analysis, which seeks to determine a security's worth based on financial metrics like sales and earnings.

Net Asset Value per Share (NAV)

A mutual fund share's current market value in dollars. The total assets of the fund are multiplied by the number of outstanding shares, liabilities are subtracted, and the result is the fund's daily net asset value (NAV). The sales charge is not included in the NAV. Pricing describes the procedure of computing the NAV.

Volatility Ratio

Technical indicators used to detect price patterns and breakouts. True range is used in technical analysis to determine how a security's price is moving on a given day in compared to its previous volatility. The most popular variants of volatility ratios are variations of average true range (ATR).

New York Stock Exchange (NYSE)

According to the total market capitalization of the securities it lists, the New York Stock Exchange (NYSE), a stock exchange with headquarters in New York City, is the largest equity-based exchange in the entire world. The NYSE, which had previously operated as a private company, changed its status to become a public company in 2006, after purchasing the electronic trading exchange Archipelago. The largest stock exchange in Europe, Euronext, and other exchanges merged to form NYSE Euronext in 2007. ICE, the current parent company of the New York Stock Exchange, eventually purchased NYSE Euronext.

HOOD (Robinhood) and ARKK (ETF Innovation) Price Analysis - 1/31/2021

Today we take a look at Robinhood (HOOD) and Cathie Wood ARK Invest flagship (ARKK). 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.