Market internals are indexes that serve to provide additional context beyond price about how the broad stock market is performing. or example, the most popular market internal is the Advance-Decline Index, which is a measure of the net number of stocks that went up today (number of advancing stocks – number of declining stocks […]
If you’re wondering what position trading is, you have come to the right place. Position trading can be appealing for a number of reasons. Stock traders who want to take a hands-on approach to trading may be drawn to the research and various strategies needed to be an efficient position trader. But is position […]
Most of the time when we make a trade, we’re making a pretty specific bet. We buy Apple because we think Apple is going up for whatever reason. It’s a simple bet with one way to win: the price has to go up. With pairs trading, you’re combining two separate bets into one. Let […]
Penny stocks have been around for a long time but are penny stocks a good long-term investment? In the movie “The Wolf of Wall Street”, con artist Jordan Belford gets his start selling worthless stocks to unsuspecting retirees. Often sold on promises of large potential gains, most of these equities were known as ‘dirt […]
Investment factors are a set of quantitative criteria used to explain investment returns. The idea is that some baskets of securities that have similar criteria might deliver superior risk-adjusted returns. At its simplest, an investment factor is a characteristic of a security that is associated with superior risk-adjusted returns. That could be a low […]
The Money Flow Index (MFI) is a modified RSI indicator with an additional volume component. Put simply, think of the MFI as RSI that accounts for volume divergences. The Money Flow Index (MFI) is a prevalent indicator used by investors and day traders alike. It is one example of a classification of indicators in […]
When the average investor thinks about the software Wall Street uses, their mind usually turns to the Bloomberg Terminal. This legendary piece of software was released in the 1980s and is the brainchild of former New York City mayor Michael Bloomberg. The software is as ubiquitous on Wall Street trading desks today as it […]
Housing starts for December 2020, reported in late January, hit a level not seen since 2006. A confluence of several factors is driving this trend which we’ll explain in this article. Translation: the housing market is booming once again. Is the boom here to stay, and how does this fare for the homebuilding industry? […]
Are you bullish on a idea or industry? Maybe you see the tastes of a specific demographic changing before Wall Street can see it. Or perhaps real estate in your area is booming, but the boom isn’t showing up in your regional homebuilder’s stock price. All of us have unique vantage points that allow […]
What is a SPAC? SPAC stocks is a Special Purpose Acquisition Company. They’re essentially shell companies that raise money, go public, then use the funds to buy a company and bring it public. You can think of them as publicly-traded venture capital firms that only ever make one investment with a specific deadline to […]
