There’s a concept in trading known as “carry trading,” which is basically how much the asset pays (or costs) you to own it, aside from price appreciation (although there are some exceptions which we’ll explore in this article). A bond, for example, has positive carry in the form of regular interest payments. On the […]
As trading gets underway in 2022, the U.S. stock market faces an uncertain future. Will traders take profits after the widely-followed S&P 500 index more than doubled in 2021 or is the January Effect going to give the market an extra boost? The January Effect continuously fascinates market participants and analysts because it frequently […]
Trade execution and volatility usually rank high for a majority of stock market participants, including day traders. In fact, in the past couple of years, traders have witnessed increased stock market volatility which has certainly increased their curiosity about how stock exchanges work. One of the most notable events that made an impact was […]
One of the growing trends in the US equity market since around 2016 is an increased concentration in the top components in equity indexes, namely the Big Tech firms like Apple, Amazon, Facebook, and Google. As you can see in the chart below, the weight of the top 10 S&P 500 components increased from […]
We have another shortened trading week due to Christmas Eve landing on Friday. Historically, the last few weeks of the year feature low volume, low conviction trading because most of Wall Street is too busy headed to the Hamptons or Sarasota to put on big trades. However, as a result of the Omicron drama […]
Insiders at public companies are selling stock at the highest rate in recorded history amid near-record high valuations and the S&P 500 at all-time highs. But, should we be concerned? After all, most insiders are rewarded shares by their employer and sell them to buy a boat or a Corvette. They’re employees, not stock […]
Have you ever wondered why stock traders on Wall Street always pay close attention to the U.S. Federal Reserve’s meetings and activities? Well, the Federal Reserve, commonly referred to as the Fed, is the most important central bank in the world because of the U.S. dollar’s special role as the main reserve currency for […]
It is well known that the stock market experiences periods of unforeseeable, and sometimes sharp, price movements. And if you’re owning stocks during such volatile periods, the fair market value of your portfolio could change drastically before you sell the stocks. Until you sell, your profit or loss is just on paper since you’ve […]
The stock market has almost entirely recovered from the Black Friday-Omicron plunge and the price action outlook is beginning to look bullish again, with last Tuesday’s price action showing very strong conviction off the lows from the bulls. Before we move onto assessing what’s coming for this week, let’s take a quick look at […]
Online media group BuzzFeed is now a publicly-traded company after completing a SPAC merger where it fetched just $16.2 million in fresh capital. Shares of the New York-based startup began trading on the Nasdaq stock market on Monday, Dec. 16 under the ticker “BZFD“. BuzzFeed went public after its investors voted in favor of […]
